The firm said that Lockheed is the "bellwether" of the defense sector, which Goldman views as "attractive." The Bethesda, MD-based aerospace company also owns "one of the Pentagon's fastest growing programs in the F-35."
Despite Lockheed's positives, the firm noted that it could be too expensive as-is.
"While we shy away from valuation concerns at the trough of the Defense cycle, this is more expensive than other Defense stocks," Goldman said.
Goldman added that the rest of Lockheed's portfolio beyond the F-35 jets lacks differentiation and is "average."
Additionally, the company is facing headwinds due to consensus assumptions on cash flow and earnings, the firm said.
(Lockheed Martin is a holding in David Peltier's Dividend Stock Advisor.)
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of A+.
The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and reasonable valuation levels. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: LMT