Introduction
In an article regarding Lockheed Martin (NYSE:LMT) we published several months ago, we stated that “ongoing conflicts in the Middle East and elsewhere are likely to provide high demand for key defense and security products provided by Lockheed Martin” and that “there are several strong indicators that the U.S demand for military equipment will grow, notably, the proposed increase in defense spending and the recent [Syrian] airstrike.” Since the time that article was published, Lockheed Martin’s stock has in fact exceeded our expectations, climbing from around $270 to its current price of over $300. It now trades at a P/E ratio of 23.91. We expect it to continue to $330.
Lockheed Martin is an aerospace and defense corporation based in the United States. It produces a large range of military transportation and combat vehicles, as well as having interests in space exploration, cyber security and a number of other advanced technology frontiers. It is well known for its military jet aircraft programs the F-35, the F-22 and the F-16. The company is currently engaged in a long term arrangement with the U.S. government for the development and production of the F-35, which represents the major fifth generation combat aircraft that American military forces will use for the coming decades.
