5 Best Space Stocks To Buy According To Hedge Funds

2. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 58

Lockheed Martin Corporation (NYSE:LMT) is ranked second on our list of 11 best space stocks to buy according to hedge funds. The company operates as a security and aerospace firm. It is headquartered in Maryland. 

On September 27, investment advisory Morgan Stanley maintained an Overweight rating on Lockheed Martin Corporation (NYSE:LMT) stock with a price target of $458, underlining that investor interest in the firm was the highest level in a decade. 

Out of the hedge funds being tracked by Insider Monkey, New York-based firm Arrowstreet Capital is a leading shareholder in Lockheed Martin Corporation (NYSE:LMT) with 536,001 shares worth more than $202 million. 

In its Q4 2020 investor letter, RiverPark Advisors, LLC, an asset management firm, highlighted a few stocks and Lockheed Martin Corporation (NYSE:LMT) was one of them. Here is what the fund said:

“Despite better-than-expected third quarter results, LMT shares were weak for the quarter as defense spending is expected to be flat for the coming year. With a record $150 billion backlog and almost 30% of its revenue coming from building F-35 aircraft with deliveries forecast to reach 180 per year in 4-5 years (3Q’s revenue upside was from the F-35), we believe LMT should grow at a higher rate than overall defense budget growth and Street expectations over the next several years. Further, strategic acquisitions (LMT acquired AJRD for $4 billion in late December), debt pay down, a 3% dividend yield, and continued share buybacks from $6 billion per year of free cash flow should lead to even greater shareholder returns.”