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Here's How Much You'd Have If You Invested $1000 in Lockheed Martin a Decade Ago
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Lockheed Martin (LMT - Free Report) ten years ago? It may not have been easy to hold on to LMT for all that time, but if you did, how much would your investment be worth today?
Lockheed Martin's Business In-Depth
With that in mind, let's take a look at Lockheed Martin's main business drivers.
Lockheed Martin Corporation is the largest defense contractor in the world. Its main areas of focus are in defense, space, intelligence, homeland security and information technology including cyber security. In 2023, 73% of the company’s net sales were from the U.S. Government, including 64% from the Department of Defense (DoD), 26% from international customers, and 1% from U.S. commercial and other customers. Lockheed Martin currently operates through four businesses — Aeronautics, Missiles and Fire Control (MFC), Rotary and Missions Systems (RMS) and Space Systems.
The company's Aeronautics unit is engaged in the design, research and development, systems integration, production and support of advanced military aircraft and related technologies. This segment includes programs like F-35 Lightning II Joint Strike Fighter; C-130 Hercules; F-16 Fighting Falcon; F-22 Raptor; and C-5M Super Galaxy. It generated sales of $27.47 billion in 2023, accounting for 40.7% of the total sales.
In Lockheed Martin's MFC business, headquartered in Dallas, some of its high-profile programs include the Terminal High Altitude Area Defense System, Joint Light Tactical Vehicle, PAC-3 Missiles, as well as logistics and other technical services from GTL. It generated sales of $11.25 billion in 2023, constituting 16.7% of the total sales.
In its RMS business, headquartered in Washington, DC, some of its high-profile programs include the Aegis Combat System, Littoral Combat Ship, MH-60 helicopter avionics, as well as military and commercial orders. It generated sales of $16.24 billion in 2023, comprising 24% of the total sales.
The company's Space Systems unit is engaged in the design, development, engineering, and production of commercial and military space systems. It generated sales of $12.61 billion in 2023, accounting for 18.7% of the total sales.
Lockheed Martin ended 2023 (on Dec 31, 2023) with $160.6 billion in the backlog.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Lockheed Martin, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in August 2014 would be worth $3,312.19, or a gain of 231.22%, as of August 16, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 183.53% and the price of gold went up 80.83% over the same time frame.
Analysts are forecasting more upside for LMT too.
Lockheed ended second-quarter 2024 on a solid note, with both its earnings and revenues surpassing their respective Zacks Consensus Estimate. Its broad product offerings allow it to secure major defense contracts, which, in turn, boosts its backlog count. Lockheed remains the largest U.S. defense contractor with a steady order flow from its leveraged presence in the Army, Air Force, Navy and IT programs. The solid U.S. defense budgetary provisions should boost its business. Its products also witness a strong international demand. The stock has outperformed the industry in the past year. However, Lockheed is facing performance issues concerning some of its products that may affect its results. Shortage of skilled labor may adversely impact Lockheed’s operating results. The sanctions imposed by China on Lockheed might also affect its business.
Over the past four weeks, shares have rallied 17.71%, and there have been 8 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Lockheed Martin a Decade Ago
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Lockheed Martin (LMT - Free Report) ten years ago? It may not have been easy to hold on to LMT for all that time, but if you did, how much would your investment be worth today?
Lockheed Martin's Business In-Depth
With that in mind, let's take a look at Lockheed Martin's main business drivers.
Lockheed Martin Corporation is the largest defense contractor in the world. Its main areas of focus are in defense, space, intelligence, homeland security and information technology including cyber security. In 2023, 73% of the company’s net sales were from the U.S. Government, including 64% from the Department of Defense (DoD), 26% from international customers, and 1% from U.S. commercial and other customers. Lockheed Martin currently operates through four businesses — Aeronautics, Missiles and Fire Control (MFC), Rotary and Missions Systems (RMS) and Space Systems.
The company's Aeronautics unit is engaged in the design, research and development, systems integration, production and support of advanced military aircraft and related technologies. This segment includes programs like F-35 Lightning II Joint Strike Fighter; C-130 Hercules; F-16 Fighting Falcon; F-22 Raptor; and C-5M Super Galaxy. It generated sales of $27.47 billion in 2023, accounting for 40.7% of the total sales.
In Lockheed Martin's MFC business, headquartered in Dallas, some of its high-profile programs include the Terminal High Altitude Area Defense System, Joint Light Tactical Vehicle, PAC-3 Missiles, as well as logistics and other technical services from GTL. It generated sales of $11.25 billion in 2023, constituting 16.7% of the total sales.
In its RMS business, headquartered in Washington, DC, some of its high-profile programs include the Aegis Combat System, Littoral Combat Ship, MH-60 helicopter avionics, as well as military and commercial orders. It generated sales of $16.24 billion in 2023, comprising 24% of the total sales.
The company's Space Systems unit is engaged in the design, development, engineering, and production of commercial and military space systems. It generated sales of $12.61 billion in 2023, accounting for 18.7% of the total sales.
Lockheed Martin ended 2023 (on Dec 31, 2023) with $160.6 billion in the backlog.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Lockheed Martin, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in August 2014 would be worth $3,312.19, or a gain of 231.22%, as of August 16, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 183.53% and the price of gold went up 80.83% over the same time frame.
Analysts are forecasting more upside for LMT too.
Lockheed ended second-quarter 2024 on a solid note, with both its earnings and revenues surpassing their respective Zacks Consensus Estimate. Its broad product offerings allow it to secure major defense contracts, which, in turn, boosts its backlog count. Lockheed remains the largest U.S. defense contractor with a steady order flow from its leveraged presence in the Army, Air Force, Navy and IT programs. The solid U.S. defense budgetary provisions should boost its business. Its products also witness a strong international demand. The stock has outperformed the industry in the past year. However, Lockheed is facing performance issues concerning some of its products that may affect its results. Shortage of skilled labor may adversely impact Lockheed’s operating results. The sanctions imposed by China on Lockheed might also affect its business.
Over the past four weeks, shares have rallied 17.71%, and there have been 8 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.