At $342.20, Lockheed Martin (LMT) a Buy based on the most current relative pricing of its shares and SEC filings. Lockheed Martin Corp's (NYSE:LMT) Buy recommendation is the conclusion of an analytical process that is proprietary and produced outcomes that were above average in 5 areas: an economic sector ranked above average in attractiveness, an industry group rated above average in attractiveness, a ranking in its sector group that is in the top quarter, ranking in its industry group that is in the top quarter, and a quantitative risk/reward calculation that is very attractive; and produced below average conclusions in 1 area: analytical scores that are below average. LMT has maintained this ranking for the last month.
The company is a component of the 54 company Aerospace & Defense GICS industry group, which is part of the 373 company GICS Electronic Technology sector. The market value of LMT is $97.8 billion which falls in the top decile in its industry group Portfolio Grader's current ranking for LMT puts it 11 among the 54 companies in this industry group, putting in the top quartile.
The Electronic Technology sector is ranked number 3 among the 20 sectors in the Portfolio Grader universe putting it in the top quartile of all the GICS sectors. The Aerospace & Defense industry group is ranked 20 among the 129 industry groups within the GICS sectors, placing it above-average in terms of the Proprietary Quantitative Score scoring system.
LMT has achieved above-average scores in 1 of the 8 fundamental metrics used by Portfolio Grader and average or below-average grades in 7 of the areas used in the ranking of company stocks.
The company's operational scores are a source of great concern with a ranking for sales growth, operating margin and earnings growth that are substantially below average. Scores for visibility of earnings are mixed, with a ranking for earnings revisions that is much better than the industry average but rankings for earnings surprises and earnings momentum that worse than average. LMT's metrics for return on equity and cash flow are significantly worse than its industry group average. Based on these fundamental scores, Lockheed Martin places in the bottom quartile of the industry group.
Quantitatively, Portfolio Grader uses the Proprietary Quantitative Score to measure LMT's shares from the viewpoint of risk/reward. This exclusive scoring methodology weighs the relative value of LMT's shares based on the recent $342.20 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Considering this risk/reward calculation, the company currently scores well above-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.