Lockheed Martin Corp
LMT: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$455.00 | Mynb | Glgnzcgq |
Lockheed Wins in the Defense Contracting Game; We See The Shares as Fully Valued
Business Strategy and Outlook
Lockheed derived more than 60% of its $67 billion in 2021 sales servicing contracts from the U.S. Department of Defense, the largest military budget on Earth, and stands to operate the largest defense procurement program ever awarded (F-35) through the 2060s. Thus, as a bet on the defense industry, Lockheed is hard to beat. Biggest isn't always best, but Lockheed (and investors) benefit from the sheer scale of its tens of billions of dollars of contracts that provide defined, decades-long revenue and profit streams.