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Lockheed Martin - AI Stock Analysis
Analysis generated February 21, 2025
Lockheed Martin Corporation is a global aerospace, defense, and security company headquartered in Bethesda, Maryland. Founded in 1995 from the merger of Lockheed Corporation and Martin Marietta, the company has become one of the world's largest defense contractors. Lockheed Martin primarily operates through four business segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space Systems, engaging in advanced technologies and delivering mission-critical solutions for governments and commercial customers worldwide.
Fundamental Analysis
Revenue for the last quarter was $17.1 billion. This represents a decrease of 5.62% compared to the previous quarter, indicating a cause for concern in terms of short-term revenue generation. However, compared to the same quarter last year, there is a slight increase of 1.34%, suggesting positive year-over-year growth. This year-over-year resilience may point to a stable long-term performance despite short-term fluctuations.
Net income for the last quarter was $1.62 billion, showing a decrease of 1.10% compared to the quarter before, and a decrease of 3.62% from the same quarter last year. The downward trending net income could be a red flag concerning profitability, highlighting potential issues in managing operational costs or margins.
EBITDA for the last quarter was $2.56 billion. Although this represents a slight decrease of 0.16% from the previous quarter, it shows a substantial increase of 25.56% from the same quarter last year. A rising EBITDA year-over-year suggests strong underlying business operations and effective cost management despite short-term revenue declines.
The current Price-to-Earnings (P/E) ratio is 19.56, which does not appear particularly high or low, suggesting that the stock is reasonably valued based on its earnings performance.
Technical Analysis
Today’s stock price is $437.02, representing a significant decrease of 13.68% compared to a month ago, highlighting short-term bearish sentiment. However, compared to a year ago, the stock price has increased by 4.57%, emphasizing a positive long-term trend.
The trend appears to be bearish at the moment. The current 10-day simple moving average (SMA10) is 430.43, falling from the previous SMA10 of 431.66. This suggests a potential downward trend in price movement, aligning with recently dropping prices.
The Relative Strength Index (RSI) is 60.2, indicating neutral market conditions. RSI values within the range of 30 to 70 suggest neither an overbought nor oversold market.
Alternative Data Analysis
Lockheed Martin currently has 2,163 open positions, up by 37% in the last couple of months. This surge in job postings indicates potential company growth and expansion, which is usually a healthy sign for business prospects.
Employee sentiment about the business outlook is neutral, showing neither overwhelming optimism nor pessimism.
Website traffic estimates show approximately 1.2 million visitors to their webpage, with no significant change over the recent months. Customer engagement based on social media metrics is mixed. Lockheed Martin has 920,000 followers on Instagram, an increase of 10% in the past couple of months, indicating rising interest and engagement. However, the Twitter page has 580,000 followers with a stagnant trend.
AltIndex's AI score, which aggregates fundamental, technical, and alternative data, gives Lockheed Martin a score of 59, which is a hold signal. This suggests balanced prospects without strong buying or selling indications.
Conclusion and Recommendation
Lockheed Martin exhibits resilience despite some short-term financial setbacks, with a stable yet cautious overall outlook. Fundamental analysis indicates mixed results with critical concerns around recent declines in revenue and net income. The technical analysis shows a bearish short-term trend, but long-term positivity. Alternative data reveals potential growth and a balanced employee outlook.
Taking all data into account, the recommendation is to hold the stock. While there is evidence of potential, current market conditions and short-term financial trends suggest caution. Investors should remain vigilant for signs of long-term strategic improvements and potential market recovery.
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.
