Lockheed Martin: This Defense Is A Good Offense - For Now

Summary

• Lockheed Martin's dominance in defense, particularly with the F-35 program, means stable, long-term revenue streams amid rising US and global defense budgets.
• The company faces challenges like skilled labor shortages and competition from SpaceX, but its economic moat remains strong due to product complexity and contract structures.
• Financially robust, Lockheed Martin can manage its $19 billion debt and continues to return excess cash to shareholders.
• This article dissects my recent analysis and holdings experience with LMT in my Yield At a Reasonable Price stock portfolio.