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Lockheed Martin recently benefited from heightened investor attention after past U.S. military strikes in Venezuela and renewed focus on key programs such as the F-35, missile defense, and space systems, alongside major contract wins that expanded its record order backlog.
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The combination of real-world combat use of its platforms, large-scale operations involving its aircraft, and a growing backlog underscores how geopolitical shocks can quickly reinforce Lockheed Martin’s role in advanced defense and space capabilities.
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We’ll now examine how Lockheed Martin’s record backlog and heightened demand for advanced defense systems could reshape its existing investment narrative.
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To own Lockheed Martin, you generally need to believe in continued demand for advanced defense and space systems, supported by its large, long-duration contract base and cash generation. The latest Venezuela-related spike in attention highlights how geopolitical shocks can move the share price, but it does not materially change the near term focus on margin resilience and execution on complex fixed price programs, where cost overruns and charges remain the biggest immediate risk to the story.
In that context, Lockheed’s disclosure of a US$179,000,000,000 order backlog stands out as the key announcement tied to recent events, because it anchors much of the debate around future revenue visibility and cash flows. Heightened interest in systems like the F 35 and missile defense after real world use may reinforce the importance of this backlog, but investors still need to weigh it against ongoing pressure on program margins and the possibility of further financial charges.
Yet behind the strong backlog that many investors focus on, there is a separate issue they should be aware of relating to…
Read the full narrative on Lockheed Martin (it’s free!)
Lockheed Martin’s narrative projects $81.0 billion revenue and $7.1 billion earnings by 2028. This requires 4.1% yearly revenue growth and about a $2.9 billion earnings increase from $4.2 billion today.
Uncover how Lockheed Martin’s forecasts yield a $528.17 fair value, a 3% upside to its current price.
Twenty five members of the Simply Wall St Community currently value Lockheed Martin between US$389 and US$647 per share, with estimates spread across the entire range. Against that backdrop, concerns around persistent cost overruns on complex fixed price contracts remind you that different views on execution risk can materially shape expectations for the business over time.
Explore 25 other fair value estimates on Lockheed Martin – why the stock might be worth 24% less than the current price!
Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.
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A great starting point for your Lockheed Martin research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
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Our free Lockheed Martin research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Lockheed Martin’s overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include LMT.
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