Lockheed Martin (NYSE: LMT) is in the spotlight after Israel’s recent attack on Iran’s nuclear program, resulting in a diversion of 20,000 missiles initially intended for Ukraine to Israel, as stated by the Ukrainian president. Notably, the Pentagon has halved its request for Air Force F-35s, signaling potential shifts in defense spending. Lockheed Martin’s stock is currently seen as attractive due to its valuation metrics, even as it faces operational and financial challenges.
Lockheed Martin’s price-to-sales ratio stands at 1.6, significantly lower than the S&P 500’s 3.0. The company reported a revenue growth of 3.1% to $72 billion over the last twelve months, while its operating margin of 10.3% lags the S&P 500 average of 13.2%. Despite these profitability challenges, Lockheed maintains a manageable debt-to-equity ratio of 18.2%. Overall, it demonstrates resilience during market downturns, recovering to new highs following past crises, indicating potential upside for value-focused investors.
