Entering text into the input field will update the search result below

Recommended For You

Comments (34)

bluescorpion0 profile picture
Which is better to invest in long term: Lockheed or l3harris?
Maybe the decline in the stock in the last few days has something to do with the CEO’s announcement that she is stepping down and an outsider is her successor. Lockheed proboably has one of the most advanced profile of technically trained staff in the world. Others like google or Apple have large well trained technical people, but not the range of qualified personnel across the scientific spectrum. In a world where technology is such an important part the company’s ability to push the technological envelop will stand them in good stead.
Moon Kil Woong profile picture
The reason aerospace and defense has been hit is that it's obvious that government funding is going to be focused on medical and keeping the economy up and for good reason. A strong country and a strong defense requires a strong economy to support it. It is not current income nut future income that is a concern. Also I know few Aerospace engineers wanting to find another sector to work in. They also tend to have a nice cushion of cash to weather the storm.

Maybe they can win contracts to build hazmat and bio hubs to protect and test people in case of emergencies like the one we are having since those running hospitals etc. have been focused on increasing profit at the cost of patients for decades now leaving our healthcare system extraordinarily vulnerable. Their executives and the executives of the HMOs and PPOs should also be forced to take the Hippocratic oath and go through moral training. Maybe then they would think twice before closing hospitals and cutting staff.
mlvSA profile picture
in other news -seekingalpha.com/...
bluescorpion0 profile picture
Are you not worried that lmt has 110,000 employees and a large pension liability? Would it do well in an Inflationary environment? Not saying people are not great but they do cost alot to babysit
Louis Stevens profile picture

This link details thoroughly any questions you might have regarding the remainder of LMT's pension liabilities.

"Another important factor is the change to our workforce. Since we closed the pension plan to new participants in 2006, we expect that by 2016 the majority of our employees will not be pension participants. As a result, current regulations will require us to make changes in the pension plan in the next few years or employees and the company will incur significant tax penalties.

We believe our new retirement program will continue to provide competitive benefits for our current employees and our future workforce."


I had the same concerns with respect to their pension liabilities, but then I learned they'd been transitioning away from lifetime pensions, which are obviously unsustainable as people begin to live well into their 80s and 90s commonly now.
bluescorpion0 profile picture
Do you think their employees pension situation is similar to IBM? Better, worse?
Generally high capex high labour business has large fixed costs and requires large investment just to maintain profit margins. On the other hand this company is supported by the USA government. In a tug of war between government and maintaining an above average margin who wins? Also can they be above average if the government demands costs that make them average ?
Thanks for this timely note @Louis Stevens, good to see unanimity here. the supersonic technology is priority #1 for the DoD and LMT is a good way to get exposure.
Down ~$140 in a month or so, no real change to fundamentals? Safe to say I added more.
5ofDiamonds profile picture
$LMT, $NOC, $RTN are all recession resistant businesses. They will not stay down once market recovers. $LHX and $GD are the $IFF of $MKC market segment, but still worth it.

Defense sector is one of the favorites of @SuperPac - a highly selective investor.

Buy them while this sale lasts.
SuperPac profile picture
I agree with my friend @5ofDiamonds

There are advantages that large cap, American military-industrials (I know, that term is much maligned) have which few sectors enjoy. Size, govt access, oligopolistic nature, R&D orientation are some of the features one must notice. The race is on in the hyper-sonics, in autonomous war technologies and what would be the militarisation of Space. All these trends will favour the military-industrial sector for several years (may be decades) ahead.
Louis Stevens profile picture
@SuperPac @5ofDiamonds

It is much maligned, and my goal in the article was really to communicate that they're actually vital and a force for good.

Here in Silicon Valley LMT employs many people and partners with many of the tech companies to ensure the U.S. remains at the forefront of technologically advanced defense.

Now all of this great stuff doesn't necessarily mean it will be a great investment, but with so many new defense frontiers, I think LMT's budget will continue to expand, and along with it shareholders' returns.
easy buy
mlvSA profile picture
Yes sir, incremental buys starting today
mlvSA profile picture
Finally opened position in $LMT,nibbling right now.
I agree with most of your points and hold a good position in the stock. The drop in price over the last week and a half is evidence of completely illogical action. Except for your global police force, your reasons are right on why the company is isolated for the most part from any negative effects from the Coronavirus outbreak. So why is the stock down 25 to 30%?
Another result of a media hype that in my view is irresponsible at best and either has profit or political motives at worst. I suspect all of the above and that is unfortunate. Scaring the public to the degree it has is a sorry development. I also would like to understand how the major hedge funds are operating in the face of this virus impact. I bet they are making a bundle and more than made up for any recent losses. Not seen any reports on this aspect.
Bottom line, LMT should not be impacted very much by the virus outbreak and when the outbreak is contained the stock should rebound quickly.
You live in a cave?
It’s still not at its 52 wk low. When/if that happens it offers a tremendous entry point.
Scoshell profile picture
With 14 more years till retirement this pullback/dip/regression/recession couldn’t come at a better time for me i think. LMT has been a great stock for me and I’d love to add NOC or GD to fill out my industrial sector to partner with EMR ITW MMM that I have owned for years. Lots more to buy to build these up and depressed prices will certainly help there. Thanks for the write up.
Great call,Thanks
Texas Hoosier profile picture

You are welcome. And you wrote a damn good article - Texas Hoosier
Texas Hoosier profile picture
Guys, I have commented on Defense Stocks in general and LMT & NOC & GD in particular. I spent 28 years in the Active & Reserve Army, the last 10 as Intelligence Analyst with the Defense Intelligence Agency (DIA), plus 33 years as an Engineer at GD/LM (Pomona, Valley Systems, Electronics and Fort Worth Divisions of GD before LM acquisition of Fort Worth (F-22/F-35) in 1993.

LM, like GD and NOC, have absolute linchpin, big deal programs that make them really solid for the next 10-20 years. The F-35 has probably upwards of 4000+ more aircraft left for production and has only certification of full-rate production left on its check list. The DOD has spent upwards of $40-60 Billion to develop and produce 500 aircraft to date....they ain't going to cancel this aircraft program as they have nothing in the pipeline to replace it. NOC has two major programs jusy starting, the B-21 and the new ICBM to replace the Minuteman which will be worth over $150-200 Billion together, and GD has the new Columbia Class Submarine to replace the Trident Boats, another $50+ Billion program.

Now a lot of people are going to say a new Liberal Democratic leadership puts all this in danger, but the existing systems all these new programs will replace are wearing out very quickly. The F-16 and F-18 competitions were held and decided when I was in college over 40 year ago and based on design technology that is nearly 50 years old. The B-1 Bomber, which was designed starting in the late 60's and early 70's, was last produced about 30 years ago. The B-2 design is 40 years old and the 22 built are over 20 years old. The Minuteman ICBMS are over 45 years old and parts of its C3 system used 8-inch floppy disk drives until the last couple years. And the Trident boats, the last of which was built about 25 years old, have a lot of wear and tear on them.

The point is, all of these systems need to be replaced, NOW, and there is no other course of action but to replace them with new, modern systems designed to last the next 40 years. So that makes these programs just about untouchable regardless of what the Dem's want to do.

I have said that LM is a $500 a share stock by 2021. Said that three years ago. Backed that up by having 550 shares of LM and an going to tell one of my brokers to get rid of all that Mutual Fund crap and buy another 500-600 shares of LM. NOC would be my 2nd choice only because not a lot of money had been spent so far on the B-21 and the new ICBM and so some Dem crazy could shut either one down without massive loss of money. Kinda like that idiot Gates did on the F-22 Raptor and Cheney did with the A-12 Avenger. The result of those two terrible decisions is that the USAF does not have enough pure 5th Gen Fighters or a real deep-strike stealthy aircraft (either a big-wing FB-22 or the USAF version of the A-12 Avenger) that can survive in a Regional conflict involving long distance penetration against a sophisticated air defense environment. And the Navy is even worse as the don't have a true 5th Gen Fighter for Air Dominance like the Naval version of the F-22 (NATF) would have given them or again, a survivable deep-strike aircraft like the A-12. See stupid, short-range decisions can have major long-term impacts that cannot always be foreseen but should be considered.

As for Elon Musk now becoming a self-proclaimed expert on manned aircraft vs UAV's, well I had an R&D project in 1992-1994 that was focused on developing and integrating the sensor derived data for near-realtime target identification and locating to support tactical air support missions.....not as easy as Mr. Musk might think.....geez, civilians.....anyway, buy Lockheed and probably, Northrop, you should do very well in the long-term - Texas Hoosier
Louis Stevens profile picture
@Texas Hoosier

Nice! Thanks for sharing.
taunto667 profile picture
Good post, I’ve been looking at this as a great opportunity to add. I was waiting to see the odds of Biden winning, but the corona panic has presented a good entry IMO
Ron Burgundy’s Hair profile picture
obiden will be exploited by DJT during head-to-head debates.
LMT is one of those easy-to-like stocks for the dividend-growth investor. Trying to scrape some cash together to buy some more during the storm.

Retired investor
Louis Stevens profile picture

That it is. Thanks for commenting, usiah.
shaderhacker profile picture
Every company is a BUY right now. That's nothing new. Markets are over sold all around. At least when can call this a legitimate pullback that so many people wanted.
Louis Stevens profile picture

Exciting times to be putting new capital to work!
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About LMT Stock

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on LMT

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.