John O'Connell, CFALockheed MartinLMTDON'T BUYJan 20, 2020

Q4 EPS and revenue beat estimates but revenue declined by 0.6% year-over-year which was cause for concern and provides reasoning to LMT's pullback. There is definitely increased demand for defense contractors which should benefit LMT in the future, however the decline in sales offset that sentiment. Forecasts suggest modest revenue and EPS growth next year. We think despite the drop in revenue in Q4, LMT should continue to perform steadily, and looks to be good value with forward price-to-earnings ratio now coming down to 16.4x. 
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Demand for products not going away (defense spending) with global tensions and war. Excellent brand name. Would recommend holding shares. R&D very strong at company. Good for long term investors. 

Geopolitics now will encourage governments to spend more on defence. The Ukraine war has persistent so long that there will need to be rebuilding of weapons stockpiles. That could make LMT interesting to own, and the market could allow a higher PE.

He just sold it, stopped out. Their price action was horrible. If their is increase in demand spending, it will take a long time to reach the bottom line of LMT.

Shows a downward, mediocre trend, unable to hold previous highs. It popped yesterday on the Israel-Hamas news and this could push it up further, but he's skeptical about the chart

Run by a good CEO, but shares are down because the market expects Washington to spend less on defence. A well-run company and shares are cheap.

Would wait to buy shares.
Quality company - but trading expensive.
Demand for defense products not going away.
Better names to invest in - prefers Raytheon.
Defensive name for investors. 

Unfortunately, a good dynamic in defense with a war going on. Defense spending is increasing, and the benefit from this type of spending is not going away. This name would be a good way to play that.

5 segments within business - has solid diversification. 
50% of business with US government.
Defensive name that is good long term hold.
Current share price high - would wait for shares to fall.

They won't grow in the next few years, but remain flat. He loves the defence industry though.

$513 should be the price target. You won't see 2022's 40% return again, but you will get exposure to consistently rising defence spending in the U.S., nearly $1 trillion this decade. Is the biggest defence company.

He models $431. Unfortunately, military stocks will do well in the next little while.

Lots of geopolitical turmoil, so it gets attention and trades at a 10% premium to the market. Usually trades 85-90% of market multiple. This makes him nervous. Defense spending is predictable, no catalyst there. In the space, he owns RTX.