Why Lockheed Martin Is Poised to Pop

Market-trouncing returns could be written in this 4-Star.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Apr 11, 2013 at 3:00PM
Industrials

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, defense contracting giant Lockheed Martin (NYSE:LMT) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Lockheed and see what CAPS investors are saying about the stock right now.

Lockheed facts

Headquarters (founded)

Bethesda, Md. (1909)

Market Cap

$30.8 billion

Industry

Aerospace and defense

Trailing-12-Month Revenue

$47.2 billion

Management

CEO Marillyn Hewson (since January 2013)

CFO Bruce Tanner (since September 2007)

Return on Equity (average, past 3 years)

32.1%

Cash/Debt

$1.9 billion / $6.3 billion

Dividend Yield

4.9%

Competitors

Boeing

Northrop Grumman

Raytheon

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 1,906 members who have rated Lockheed believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, jukebox71, highlighted Lockheed as a particularly refreshing opportunity: "[A] dirt cheap P/E, a solid dividend, AND they have solved one of the greatest threats to the existence of mankind: cheap desalinated water. [F]or all the garbage in the news, [Lockheed's] efforts to bring fresh water to the masses reminds me that there is still a lot of good in the world."

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.