#1 - Lockheed Martin (NYSE:LMT)
The first company to consider is Lockheed Martin Corp. (NYSE: LMT). The company is the leading defense contractor in the United States by revenue and market cap. With geopolitical tensions bubbling up around the world, defense spending is likely to be protected even as the U.S. Congress has yet to approve a budget.
The stock trades at 16x forward earnings and is expected to grow earnings by 8.82%. The Lockheed Martin analyst ratings on MarketBeat give LMT stock an upside of 15.2%. And that goes along with a dividend that has a 2.95% dividend yield, has been increasing for 21 consecutive years, and currently pays out $12.60 per share annually.
The risk is that the defense budget is under close scrutiny as part of the 2023 debt ceiling deal. One example of that may be the Lockheed Martin F-35 fighter jets. The Biden administration is considering an 18% cut that could impact Lockheed Martin by as much as $1.6 billion. However, Lockheed appears to have already factored the bad news into its earnings, and analysts still forecast double-digit gains even as they lower their price targets for LMT stock.
About Lockheed Martin
Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. The company operates through Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space segments.
Read More - Current Price
- $466.20
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $485.40 (4.1% Upside)
