| | | Re: Industrials
LMT is one of my largest holdings, so just to cheerlead for a moment; Despite ending the war in Afghanistan, the 2022 defense budget increased over last year, with congress approving $768B, $25B over what the white house requested, in a vote 88 to 11 in the senate. So the government's appetite for increased defense spending is still robust regardless of the state of the economy.
LMT is the leader in next gen technologies including stealth, directed energy, hypersonics, autonomous wingman aircraft, and sensor/interceptor communication. They're well positioned for future contracts including future vertical lift, missile defense, and space systems. Many countries are looking to update their air combat systems and the F35 is proving to be an ideal solution as demonstrated by Finland recently selecting it over the Saab Gripen. The F35B with it's short takeoff / vertical landing gives countries without larger aircraft carriers new capabilities and the F35A as a nuclear delivery system further establishes it's long term attractiveness.
Currently yielding 3.25%, their average annual increase has been 14% over the past 10 years. S&P gives them an A- bond rating and they've increased sales by an average of 10% over the past 10 years. Their price to sales of 1.39 and price to earnings of 12.91 is below other defense primes and they are currently 14% below their 52 week high. |
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