Lockheed Martin Yields 2.6% and Trades at 17.6 Times Earnings. Is Wall Street Right to Be Cautious on the Stock ?
The defense industry is changing, creating pressure on traditional ways of working.
Overview
Given Wall Street's usual optimism, the three buy ratings, six hold ratings, and one sell rating (from Goldman Sachs), according to Visible Alpha, indicate a cautious view of Lockheed Martin (NYSE: LMT) stock. That may surprise many investors, given the company's attractive valuation, all-time-high backlog of $230 billion in the second quarter (almost three times its estimated 2026 sales), and surging global defense budgets.
Does the caution make sense?
Details
I'll cut to the chase here. I think the caution is justified for three key reasons:
Source
Originally published at www.fool.com.
Related Articles
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.