LMT for the Long-Term -- Time to Fly Again
Time and time again LMT has been a stellar stock.
Now, let's start with why they may be down over the last few months:
- Plane sales are declining due to COVID -- great, they're about to bounce back, look at BA for comparison
- Democrats in office - okay, but have they ever actually decreased military spending drastically? I think LMT will be just fine under a Biden admin
Long Term Potential:
- Jets: F-35 program is great! New F-16 maintenance contract for 64B, amazing!
- Space: Even without the AJRD acquisition (which could still happen), LMT has >20% revenue related to space
Fundamentals:
- PE of 13.91
- EV/EBITDA of 11.18
- Market Cap of ~94B over an annual revenue of 65.4B (1.43x) -- Revenue grew >9% despite COVID (2020/2019) whereas the stock fell from ~410 to ~360 in 2020 alone (~12%)... it's now down from ~440 COVID high to ~340 now (~23%)
- 3.10% yield
- 1.39 quick ratio
- Earnings in late January missed (barely) and we went down to ~320, but I think we're ready to bounce and to get out of here. We're at ~340 now... plenty of room to set a new lower high and to change momentum to the bulls
Technical:
- Who cares?! We've been going down... a lot... but we've gone down so much that fundamentals are back in play!
- We're seeing some downward pressure / resistance, but I read that we are now consolidating on Long-Term support
- Weekly RSI <40; Monthly RSI <50
- Weekly MACD is lower than the COVID low
Conclusion:
If LMT goes below 300, call me wrong, but based on both fundamentals and technical, this seems like an amazing opportunity to buy for the long-term. Let's aim for ~440 or ~420 (pre or post COVID highs respectively) and then even higher from there!
Now, let's start with why they may be down over the last few months:
- Plane sales are declining due to COVID -- great, they're about to bounce back, look at BA for comparison
- Democrats in office - okay, but have they ever actually decreased military spending drastically? I think LMT will be just fine under a Biden admin
Long Term Potential:
- Jets: F-35 program is great! New F-16 maintenance contract for 64B, amazing!
- Space: Even without the AJRD acquisition (which could still happen), LMT has >20% revenue related to space
Fundamentals:
- PE of 13.91
- EV/EBITDA of 11.18
- Market Cap of ~94B over an annual revenue of 65.4B (1.43x) -- Revenue grew >9% despite COVID (2020/2019) whereas the stock fell from ~410 to ~360 in 2020 alone (~12%)... it's now down from ~440 COVID high to ~340 now (~23%)
- 3.10% yield
- 1.39 quick ratio
- Earnings in late January missed (barely) and we went down to ~320, but I think we're ready to bounce and to get out of here. We're at ~340 now... plenty of room to set a new lower high and to change momentum to the bulls
Technical:
- Who cares?! We've been going down... a lot... but we've gone down so much that fundamentals are back in play!
- We're seeing some downward pressure / resistance, but I read that we are now consolidating on Long-Term support
- Weekly RSI <40; Monthly RSI <50
- Weekly MACD is lower than the COVID low
Conclusion:
If LMT goes below 300, call me wrong, but based on both fundamentals and technical, this seems like an amazing opportunity to buy for the long-term. Let's aim for ~440 or ~420 (pre or post COVID highs respectively) and then even higher from there!
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.