Lockheed - long the post-dividends dipLMT really took off (pun intended) in the days leading up to and following their last earnings report, only to return to the landing strip again before taking another shot at $360. It is now back to home base and looks to be refueling before trying $360 again.
On Friday, LMT scored a sizeable contract with the USAF for training support, and with no shortage of F35 orders, Lockheed looks to be a solid long term play, as well. Especially since they pay dividends.
LMT trade ideas
Lockheed Martin illogical reaction on positive news = buying oppLMT bleeped on my radar just now as it went down more than 7% despite going up by 1% in pre-market.
The move came in after new results were out, I'll quote some of them and you be the judge if this fall is organic:
"- earnings of $1.2B, or $4.02 per share, compared to $78M, or $2.69 per share, in the same quarter a year ago.
- Quarterly cash deployment: Cash from operations of $632M after pension contributions of $1.5B; Capex $216M; Repurchased 900K shares; Paid cash dividends of $586M; Record backlog of $105B.
-Raised outlook for 2018: Diluted earnings per share (GAAP) of $15.80-$16.10 (from $15.20-$15.50), on net sales of $50.35B-$51.85B (vs. $50B-$51.5B)."
Absolutely a buy in my book, would give it one more day to see where it will consolidate, but expecting the comeback to be swift as it has been each time the previous pullbacks occurred.
Buy LMT On This PullbackLMT has dropped from an all time high and has retested the support zone as highlighted in the rectangle in the chart.
As you can see, LMT has an upward sloping 50 and 200 day SMA. This shows that LMT is in a solid uptrend. Although we are currently below the 50 day SMA, we are still well above the 200 day SMA.
Trade Idea: Now would be a good time to buy a half position. You can buy another half on a dip to the 325-330 zone. Your stop loss is just below 325, and your profit exit is around 360. You risk 10 dollars for a reward of 20 dollars. That is a good risk:reward ratio.
LMT Sort OpporunityAn intraday high potential, Back Tested Sort Analysis.
We ll try to find an entry price within the expected pull back zone (330.07 - 331.92) as previously back tested.
We ll try to enter into the correction of the uptrend movement tracking trend oscillators as below:
Market is currently closed. No market activity presented so far. We ll try to find an entry price between 330.07 - 331.92 just after the opening bell.
CCI diverges the price crossing down the zero level as well as shown in the chart.
DETAILS ON THE CHART
NOTE: Entry range area above the entry point, is calculated upon 80% of the recorded pullback back tested past performances
DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money on.
LMT not following the restThe thing about Lockhead Martin is that most of their profit comes from government defense contracts = US kicking someone's ass. So the stock does not follow so much the rest of the market.
*If you don't care about fundamentals skip the next part*
Namely, while most stocks have encountered a technical resistance of the various high levels of this bear market and began a sell off this week. LMT did not care. The stock pushed higher and drew a red candle only on Friday, when the rest of the markets (twitter especially) were filling up their pants. The reason for that is the fact that the stock price did not recover in 2009. The reason was that the US government while saving money did not give LMT business. (Not going to produce rockets and aircraft while the people still remember the recession).
Instead the company got their business back in late 2012. So their ascending pattern was drawn then, and it was holding long.... very long... until recently it broke the patterns resistance, which began to provide support. (bold yellow lines).
In my opinion the LMT held and gained because Trump kept pushing the US Congress into keeping defense spending unchanged = not taking business away from LMT. So if they approve no changes or an increase to the military LMT will still produce profits in the upcoming years. + they beat their earnings last week.
*continue here*
The stock price is trading in a medium ascending pattern (purple lines). The upper trend line of the pattern has not been yet touched, but, if one uses it to draw Fibonacci retracement levels, then they confirm a point on the medium term patterns trend line as a high point.
However, there exist junior patterns to the mentioned channel. To be exact, there are two of them (black lines).
In general, to keep it short! Price hit resistance of dominant up channel, formed a junior downard pattern, which is set to meet the dominant one's support. Afterwards, it remains to be seen, whether the support gets passed or forces a new rebound, which reaches the upper trend line of the previously mentioned long term ascending pattern.
P.S. There is loads of stuff in regards to LMT that is very particular just to it, but I like this stock as my "Lord of War" or "Murder Money." So feel free to ask questions and comment.
Yours sincerely,
Y
New contracts on the horizon? The profit in this idea is hedged!Lockheed Martin is one of the largest companies in the aerospace, defense, security, and technologies industry. Produces aircrafts, such as F-35 and F-22. The main customer is the US government, which provided about 82% of the revenue.
Newsflow:
The shares of the defense corporation Lockheed Martin Corporation are continuing their upward trend. In December 2017, the world's largest supplier of military technology received a $944 million contract for production and delivery of Lockheed Martin Patriot Advanced Capability-3 (PAC-3) and PAC-3 Missile Segment Enhancement (PAC-3 MSE) interceptors.
Additionally, in the same month Lockheed Martin Aeronautics Co, a unit of Lockheed Martin Co, received a $ 7 billion defense order for F-22, the Pentagon said in a statement on Thursday.
The growth may accelerate due to the increased sales on the international market, where Lockheed offers the most demanded defense products.
Lockheed Martin’s shares have gained +28.9% over the past year.
Based on 8 analysts offering 12 month price targets for LMT in the last 3 months:
The average price target of 323.00 US-Dollar
The maximum price target of 360 US-Dollar
The lowest price target of 300 US-Dollar
Today LMT’s stock price is about 330.51 US-Dollar a share.
Fundamental Data:
P/E ratio: 18.66 / Sales growth: 2.42% / Profit growth: 47.07% / Dividend: $6.77/2.05% (Source: teletrader).
Chart Tools:
What say the technical analysis methods I use?
Oscillator: The RSI of Lockheed Martin is in the overbought zone.
Trend indicator: The MACD forwarding to the north.
Price Indicator: The SMA 200 is around $296 and the current price is clear!
The risk management tool used here is the own-developed “Traffic Signals System” (TSS) and it will be implemented in my future analyses.
The black line in the chart: the starting price of the idea is 314.41 US-Dollar.
The red line in the chart: the stop loss will be tightened to $322. Background is the GAP drawn in the chart with the yellow circle.
This is based on the support and the profit in any case with 2.41 percent from the start of the idea hedged.
The green line in the chart: here is my opinion, a possible next turning point in the idea = first goal at about 333 US-Dollar.
Conclusion:
Lockheed Martin is clearly one of last year's winners and winners of the Trump administration. This idea for a position trade runs very satisfactorily and is hedged with plus + 2.41 percent from the start of the idea.
Parameters of the Idea - Start of the idea: $314.41
Recent stock price: $330.51 (+5.12% from the starting price)
Stop-Loss of the idea: $322 (+2.41% from the starting price)
Take Profit of the idea: $360 (highest target price)
This idea has been running since December 8, 2017, currently 34 days.
If you like this idea, you are welcome to follow me here. I am happy to share my ideas with you.
Sincerely yours,
Ritschy Dobetsberger
Disclosure:
“The trading ideas published here are neither to be understood as a recommendation nor as an offer or an invitation to buy or sell financial instruments and should not be understood as such.
You must also assume that the author holds the recommended position in his portfolio and benefits from the implementation of his trading ideas.”
Simple investment in LOCKHEED MARTIN Corporation Lockheed Martin (NYSE: LMT) is an American global aerospace, defense, security and advanced technologies company with worldwide interests. was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It is headquartered in Bethesda, Maryland, in the Washington, DC, area. Lockheed Martin employs 97,000 people worldwide.Marillyn Hewson is the current President and Chief Executive Officer.
There is no technical analysis for that kind of stock,only need insight for future.
There can be low rate of profit but it's sure that you may have a profit year by year by investing in LMT.
Long term investment in Lockheed Martin Corporation If you are interested in warfare technology and you want to invest in stocks long term, you should buy Lockheed Martin Stocks.
The stock prices rose after the innovation of stealth fighter jets,war news.
United State's power is based on that kind of warfare corporations and even in the broken economy cuz of political crisis and war, LMT stocks shall rise.
Investing in LMT stocks can be profitable cuz of US and North Korean crisis.
LONG POSITION - 2 Possible entries - Lockheed Martin (LMT)Sector: Industrial Goods
Industry: Aerospace/Defence Products & Services
BASIC INFO:
Lockheed Martin Corporation is a security and aerospace company in the research, design, development, manufacture, integration and sustainment of technology systems, products and services worldwide.
It operates through four segments:
Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space Systems.
Earnings over the last 4 quarters have been better than estimated as well as a few big contracts awarded to the company finance.yahoo.com . Price/Earnings for LMT are still above the industry average by at least 50%. Earnings Forecasts also look promising with a rising earning per share forecast over the next 4 years. Return on Equity gets a passing score as it has also been increasing for at least two consecutive years.
Here are 2 possible entry points to get in on the Lockheed Martin(LMT) up trend:
Price has been trading high above the 50 day moving average for the last month but still within the trend range. However this might indicate a posable correction back to the moving average and we might also have resistance around the 300 mark so we need to be careful of that.
Option 1 - The price pushes straight through 300, has a small resistance wobble and carries on with its up trend (MA50 might stop this happening).
Time to get in would be after we’re sure resistance has been broken i.e. 302.
Option 2 - Price rebounds off top trend line or the 300 mark forcing price to retrace closer the the MA50 and to the bottom trend line (Red Dotted Line) before attempting to break the 300 while moving with its average.
Time to get in would be after we have rebounded off the bottom trend line (Red Dotted Line) and have seen a day or two of positive price action.
For this stock my preference would be to aim for a stop just below the bottom trend line (Red Dotted Line) as this could be an indicator the trend is over. However as the trend continues I would add to the position every time the price bounces off the bottom trend line (Green Arrows).