Is Lockheed Martin Stock an Obvious Buy Right Now?

A combination of ongoing geopolitical conflict, NATO enlargement, and a recent commitment by NATO members to ramp up defense spending to 5% of gross domestic product (GDP) by 2035 would appear to make a leading defense stock like Lockheed Martin (NYSE: LMT) a highly attractive stock, so let's take a closer look at it.Lockheed's 2.8% dividend yield strengthens the bulls' case, as well as its undemanding price-to-free cash flow (FCF) multiple of 16.5 times, which is at the midpoint of management's full-year 2025 guidance. Moreover, its customer base, which includes defense departments backed by government money, is as reliable as it comes.That said, it's far from clear that Lockheed is quite the no-brainer investment it appears to be. The key argument against it is that it appears to be becoming increasingly difficult for defense companies to deliver increasingly complex projects on time and within budget. For example, losses on Boeing's fixed-price development programs have led its defense business to report multibillion-dollar losses in recent years. In addition, RTX has taken charges on terminated fixed-price development contracts in recent years. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool