3 Hold-Rated Dividend Stocks
Lockheed Martin Corporation (NYSE: LMT) shares currently have a dividend yield of 5.00%. Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products for defense, civil, and commercial applications in the United States and internationally. The company has a P/E ratio of 11.03. Currently there are 4 analysts that rate Lockheed Martin Corporation a buy, 2 analysts rate it a sell, and 11 rate it a hold. The average volume for Lockheed Martin Corporation has been 2,557,900 shares per day over the past 30 days. Lockheed Martin Corporation has a market cap of $29.7 billion and is part of the aerospace/defense industry. Shares are down 0.7% year to date as of the close of trading on Thursday. TheStreet Ratings rates Lockheed Martin Corporation as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow. Highlights from the ratings report include:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Aerospace & Defense industry and the overall market, LOCKHEED MARTIN CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- LOCKHEED MARTIN CORP's earnings per share declined by 19.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LOCKHEED MARTIN CORP increased its bottom line by earning $8.34 versus $7.86 in the prior year. This year, the market expects an improvement in earnings ($8.95 versus $8.34).
- LMT, with its decline in revenue, slightly underperformed the industry average of 6.5%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The debt-to-equity ratio is very high at 161.74 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, LMT maintains a poor quick ratio of 0.75, which illustrates the inability to avoid short-term cash problems.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Aerospace & Defense industry average. The net income has decreased by 16.7% when compared to the same quarter one year ago, dropping from $683.00 million to $569.00 million.
- You can view the full Lockheed Martin Corporation Ratings Report.
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