Important note

This AI stock analysis for Lockheed Martin is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Lockheed Martin - AI Stock Analysis

Analysis generated October 24, 2024

Lockheed Martin Corporation is a global aerospace, defense, and security company principally engaged in the research, design, development, manufacturing, integration, and sustainment of advanced technology systems and services. Lockheed Martin is headquartered in Bethesda, Maryland, and one of the largest defense contractors in the world. The company operates through four main segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.

Fundamental Analysis

For the most recent quarter, Lockheed Martin reported revenue of $17.1 billion. This marks a 5.62% decline from the previous quarter, reflecting potential challenges. However, on a year-over-year basis, revenue increased by 1.34%, indicating some level of resilience and growth over the longer term despite the challenges.

The net income for Lockheed Martin in the last quarter was $1.62 billion. Compared to the previous quarter, this is a 1.10% decline, raising concerns about profitability in the short term. Year-over-year, net income decreased by 3.62%, which could be a red flag for investors watching the company’s earnings deteriorate over time.

An alarming metric is the EBITDA, which was reported as $0 in the last quarter. This means a 100% decrease both quarter-over-quarter and year-over-year, a critical point that might suggest operational inefficiencies.

The Price-to-Earnings (P/E) ratio is currently 20.66. This is usually considered within the normal range, not overly high nor too low, indicating a generally fair valuation compared to the broader market.

Moreover, there has been insider selling in the last few months, which is often seen as a potentially bearish indicator, suggesting that those with the most intimate knowledge of the company might have concerns about its future performance.

Technical Analysis

The current stock price of Lockheed Martin is $564.21. This reflects a 2.49% decline from a month ago, which can be concerning for traders looking for short-term gains. However, year-over-year, the stock price has increased by 29.42%, painting a more favorable long-term picture.

The recent trend is bearish. The current Simple Moving Average over 10 days (SMA10) is $598.98, lower than the previous SMA10 of $603.64, implying potential downward momentum.

The Relative Strength Index (RSI) stands at 45.9, indicating a neutral condition in the stock. An RSI near 50 traditionally suggests a lack of momentum in either direction. However, it is essential to monitor this metric for signs of overbought (RSI above 70) or oversold (RSI below 30) conditions.

Alternative Data Analysis

On the labor front, Lockheed Martin has 1,534 open positions according to major job boards, an increase of 14% in recent months. This suggests the company is expanding, potentially a healthy sign.

Employee sentiment about the business outlook is neutral, which doesn’t provide strong bullish or bearish sentiment but indicates a stable working environment.

For customer acquisition, visitor traffic to Lockheed Martin's webpage is estimated to be 1.1 million, a decline of 8% over the past few months. This could be an area of potential concern indicating loss in customer engagement or interest.

On social media, Lockheed Martin’s Instagram page has an increasing follower count, now at 830,000. The followers have increased by 8% recently, indicating growing interest. Similarly, the Twitter page has 570,000 followers, with no significant change over the past few months.

According to AltIndex, which utilizes AI to predict stock price movements based on various data sources, Lockheed Martin has an AI score of 59, which is essentially a hold signal.

Conclusion and Recommendation

Examining all the data, Lockheed Martin presents a mixed bag. Their financial performance shows some concerns such as the declining revenue quarter-over-quarter, no reported EBITDA, and slight decrease in net income. These are critical metrics that could affect investor confidence. Additionally, insider selling poses a potential red flag.

From a technical standpoint, the stock shows bearish momentum with SMA10 decreasing and RSI indicating a neutral zone. In the short term, the decline in stock price could continue.

Alternative data gives a somewhat mixed outlook. Job postings indicate expansion, but declining webpage traffic could be an indicator of potential issues with customer engagement or sales.

Given these considerations, Lockheed Martin's stock appears to be a hold. The long-term prospects show some promise with favorable year-over-year growth in stock price and revenue, but short-term performance issues and insider selling suggest caution. Investors looking for growth should watch the next few quarters closely for signs of improvement in core financial metrics.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.