Top Economist Shayne Heffernan Betting on Lockheed Martin Corporation (NYSE:LMT) $LMT #Stocks #Areospace #Defense Right Now
Lockheed paid suppliers $1.1 billion, added 8,300 jobs since pandemic
Lockheed Martin Corporation
Ticker: NYSE:LMT
Price: $356.76
Recommendation: Buy
Sector Outlook
Global Defense Spending has been on a major upswing over the recent years spurred by the return of the great power competition amongst the leading global powers. The focus has been on equipment modernization, capabilities revitalization and increased R&D outlays towards development of next generation & game changer technologies with the traditional as well as the revisionist powers looking for a potential overmatch & that much vaunted military edge. The United States continues to maintain the traditional top spot driven by the nation’s significant focus & investments towards R&D while the Chinese ascension & the Russian resurgence, too, are being funded adequately.
Global Defense Spending, standing at just over 2% of the Global GDP for 2019, has been growing at a scorching pace since the onset of this great power competition with the growth rate, pegged at 3.6% for 2019, almost paralleling the Cold War era highs. The Middle East, Eastern Europe & the Asia-Pacific regions remain as the traditional battlefields for dominance & influence amongst the great powers of the world with political instability, ongoing conflicts & territorial disputes reigning supreme across these regions fuelling demand of military equipment by the regional powers & leading nations across these regions for both defense & offense purposes which has given huge propulsion to arms imports & initiation of indigenous, large scale defense programs over the recent years with the Asia-Pacific region bagging the top spot, a trend which is likely to be sustained over medium term.
This return to the age of multipolarity, marked by the onset of great power competition at the world stage stymieing the forces of globalization & marking the resurgence of the age of realism, has simultaneously been superimposed by the onset of the global outbreak of the COVID-19 pandemic in early 2020, opening the second front and making the entire emerging scheme of things even more complicated. The economic impact of the pandemic & the funding of the relief efforts, underway across the globe, are likely to put pressure on government finances across most parts of the world. However, their impact on defense spending is likely to be limited to near term & non-strategic programs. Most strategic & long term, indigenous defense programs as well as technology development efforts are likely to be more or less immune in nature, even to the highly infectious & lethal Novel Coronavirus and the resulting COVID-19!
Business Summary
Lockheed Martin Corporation is a security and aerospace company. The Company operates through four segments.
Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies.
Missiles and Fire Control segment provides air and missile defense systems; fire control systems; manned and unmanned ground vehicles, and energy management solutions.
Rotary and Mission Systems segment provides design, manufacture, service and support for a range of military and civil helicopters; mission systems and sensors for rotary and fixed-wing aircraft; simulation and training services, and unmanned systems and technologies, among others.
Space Systems segment is engaged in the research and development, design, engineering and production of satellites, strategic and defensive missile systems and space transportation systems.
Shayne Heffernan Trade Idea
“Our current price target of Lockheed Martin Corporation will come in around $433.72 giving the stock a price increase of +21.57%. We suggest buying on dips.”
Price Performance
Relative Valuation
Technical Indicators
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 382.77.
The projected lower bound is: 329.90.
The projected closing price is: 356.34.
Candlesticks
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 7 black candles for a net of 5 black candles. During the past 50 bars, there have been 18 white candles and 31 black candles for a net of 13 black candles.
Momentum Indicators
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 17.8069. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 8 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 36.83. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 71 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -119.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 8 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 10 period(s) ago.
Rex Takasugi – TD Profile
LOCKHEED MARTIN closed down -6.060 at 356.760. Volume was 7% above average (neutral) and Bollinger Bands were 14% narrower than normal.
Open High Low Close Volume 359.560 367.420 355.010 356.760 2,008,720
Technical Outlook Short Term: Oversold Intermediate Term: Bearish Long Term: Bearish
Moving Averages: 10-period 50-period 200-period Close: 371.58 381.26 385.41 Volatility: 31 44 52 Volume: 2,025,509 1,534,710 1,452,366
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
LOCKHEED MARTIN is currently 7.4% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
Our volume indicators reflect moderate flows of volume out of LMT (mildly bearish). Our trend forecasting oscillators are currently bearish on LMT and have had this outlook for the last 6 periods.
Top Economist Shayne Heffernan Betting on Lockheed Martin Corporation (NYSE:LMT) Right Now added by HEFFX on
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