Is Now a Good Time to Buy Lockheed Martin?

There was plenty to like about Lockheed Martin's (NYSE: LMT) earnings report on Oct. 22. The aerospace and defense manufacturer raised its full-year guidance for the second quarter in a row while beating Wall Street's third-quarter estimates. While the stock has risen more than 20% year to date as of this writing, Lockheed remains a solid buy for long-term investors.

First and foremost, Lockheed's third-quarter sales grew 11% to $20.7 billion. Earnings per share beat analysts' expectations by nearly $0.50 at $7.97. All four of Lockheed's segments grew, with the Missiles and Fire Control business having the greatest gain, increasing 14% from this quarter last year.

Lockheed's management now expects sales to top $80 billion and free cash flow of $7.8 billion to $8 billion in 2026. The free cash flow number increased by $800 million from last quarter. Lockheed also increased its dividend again, marking 24 consecutive years of increases.

Continue reading