Lockheed Martin Corporation [NYSE: LMT] shares went higher by 0.30% from its previous closing of 387.91, now trading at the price of $389.06, also adding 1.15 points. Is LMT stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 1.34 million contracts. Compared to the average trading volume of LMT shares, the company saw a far better performance. Moreover, the stock has a 281.68M float and a 3.27% run over in the last seven days. LMT share price has been hovering between 442.53 and 266.11 lately, and is definitely worthy of attention.
Lockheed Martin Corporation [NYSE:LMT]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For Lockheed Martin Corporation [LMT] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in 3/30/2020. On average, stock market experts give LMT an Overweight rating. The average 12-month price forecast for this stock is $389.06, with the high estimate being $500.00, the low estimate being $377.00 and the median estimate amounting to $429.00. This is compared to its latest closing price of $387.91.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Lockheed Martin Corporation [LMT] is sitting at 4.20. This is compared to 1 month ago, when its average rating was 4.20.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for 07/28/2020.
Fundamental Analysis of Lockheed Martin Corporation [LMT]
Now let’s turn to look at profitability: with a current Operating Margin for Lockheed Martin Corporation [LMT] sitting at 13.70% and its Gross Margin at 13.50%, this company’s Net Margin is now 10.20. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 50.09, and its Return on Invested Capital has reached 42.40. Its Return on Equity is 187.50%, and its Return on Assets is 12.90%. These metrics all suggest that Lockheed Martin Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Lockheed Martin Corporation [LMT] has generated a Total Debt to Total Equity ratio of 439.85. Similarly, its Total Debt to Total Capital is 81.48, while its Total Debt to Total Assets stands at 28.94. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 392.04, and its Long-Term Debt to Total Capital is 72.62.
What about valuation? This company’s Enterprise Value to EBITDA is 13.39 and its Total Debt to EBITDA Value is 1.36. The Enterprise Value to Sales for this firm is now 2.04, and its Total Debt to Enterprise Value stands at 0.11. Lockheed Martin Corporation [LMT] has a Price to Book Ratio of 34.99, a Price to Cash Flow Ratio of 15.12 and P/E Ratio of 17.66. These metrics all suggest that Lockheed Martin Corporation is more likely to generate a positive ROI.
Lockheed Martin Corporation [LMT] has 284.61M shares outstanding, amounting to a total market cap of 110.73B. Its stock price has been found in the range of 266.11 to 442.53. At its current price, it has moved down by -12.08% from its 52-week high, and it has moved up 46.20% from its 52-week low.
This stock’s Beta value is currently 0.99, which indicates that it is 2.62% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 56.23. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Lockheed Martin Corporation [LMT] a Reliable Buy?
Shares of Lockheed Martin Corporation [LMT], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.
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Author: Kevin Freeman