Lockheed Martin: A Great Business At A Fair Price


  • At current price level of ~$385, investment in Lockheed Martin represents an opportunity with large upside up to ~70% in 3 years but little downside.
  • The stock price decline over the past few months has been largely unwarranted and created an entry opportunity for a great business at a fair price.
  • The current uncertainties in the US government military budgeting and COVID interruptions are only temporary and do not impact the moat or the secular trend of the business.
  • The F-35 program is a main cause, though not the only one, for the optimism and it alone could fuel LMT’s growth for many years to come.
F-35 approaching sound barrier
Photo by ArjanL/iStock Editorial via Getty Images

The investment thesis

At current price level of ~$385, investment in Lockheed Martin (NYSE:LMT) represents an opportunity with large upside up to ~70% in 3 years but little downside. The stock price has declined over the past few months from a peak

This article was written by

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Proven solutions for both high income & high growth with isolated risks

** Disclosure: I am associated with Sensor Unlimited.

** Master of Science, 2004, Stanford University, Stanford, CA 

Department of Management Science and Engineering, with concentration in quantitative investment 

** PhD,  2006, Stanford University, Stanford, CA 

Department of Mechanical Engineering, with concentration in  advanced and renewable energy solutions

** 15 years of investment management experiences 

Since 2006, have been actively analyzing stocks and the overall market, managing various portfolios and accounts and providing investment counseling to many relatives and friends.

** Diverse background and holistic approach 

Combined with Sensor Unlimited, we provide more than 3 decades of hands-on experience in high-tech R&D and consulting, housing market, credit market, and actual portfolio management. We monitor several asset classes for tactical opportunities. Examples include less-covered stocks ideas (such as our past holdings like CRUS and FL), the credit and REIT market, short-term and long-term bond trade opportunities, and gold-silver trade opportunities. 

I also take a holistic view and watch out on aspects (both dangers and opportunities) often neglected – such as tax considerations (always a large chunk of return), fitness with the rest of holdings (no holding is good or bad until it is examined under the context of what we already hold), and allocation across asset classes.

Above all, like many SA readers and writers, I am a curious investor – I look forward to constantly learn, re-learn, and de-learn with this wonderful community.

Disclosure: I am/we are long LMT, WBA, ABBV, INTC, VZ, KR, MRK, GD, BABA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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