5 Best Space Stocks to Buy Now

3. Lockheed Martin (NYSE:LMT)

No of HFs: 47

Total Value of HF Holdings: $1.66 Billion

Lockheed Martin was mentioned as of the Top 10 Sin Stocks to Buy Now. The top hedge fund holder of this stock is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital, which had over $479 million, invested in the stock at the end of September. An insider recently purchased 1,354 shares at around $376. The stock is down 7% since then.

In an article, RiverPark Advisors, LLC mentioned that under Jim’s leadership the stock grew its market capitalization from $2 billion to $100 billion.

“Lockheed Martin is the world’s largest aerospace and defense contractor. With about 70% of its $60 billion in revenue from the U.S. government, the company is well positioned to benefit from U.S. defense budget growth, historically 5-6% per year, as well as increased global military spending. With a $144 billion backlog and deliveries forecast to reach 180 aircraft per year in 4- 5 years, we believe the company could grow at a significantly higher rate than overall defense budget growth over the next several years. The Street expects mid-single-digit revenue growth for the company, in-line with overall market growth. Due to its exposure to faster-growing programs, we believe the company can exceed that growth rate, and add margin expansion from increased scale. Further, strategic acquisitions, debt pay down, a 2% dividend yield, and continued share buybacks from $6 billion per year of free cash flow should lead to even greater shareholder returns.

We are also excited about LMT’s new – CEO James Taiclet – a military veteran and, over the previous 10 years the highly respected CEO of American Tower, a long-time Fund holding. Under Jim’s leadership, AMT grew its market capitalization from $2 billion to $100 billion and as both a shareholder and US citizen we look forward to him bringing his vast array of leadership skills to LMT.”

Pixabay/Public Domain