5 Best Stocks to Buy on the Dip for Long Term

4. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 52

Lockheed Martin Corporation (NYSE:LMT) shares have lost about 6% year to date through November 12. But Citi believes Lockheed Martin Corporation (NYSE:LMT) should be bought on the dip for long-term gains.

Insider Monkey’s database shows that 52 hedge funds had stakes in Lockheed Martin Corporation (NYSE:LMT) as of the end of the second quarter of 2023. The biggest hedge fund stakeholder of Lockheed Martin Corporation (NYSE:LMT) was John Overdeck and David Siegel’s Two Sigma Advisors which owns a $364 million stake in the company.

RiverPark Advisors made the following comment about Lockheed Martin Corporation (NYSE:LMT) in its Q3 2023 investor letter:

“Lockheed Martin Corporation (NYSE:LMT): LMT is the world’s largest aerospace and defense contractor. With about 70% of its $66 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 $158 billion backlog and almost 30% of its revenue coming from building F-35 aircraft with deliveries forecast to reach 180 per year (up from 141 in 2022) in the coming years, we believe the company could grow at a higher rate than overall defense budget growth and Street expectations over the next several years. Further, strategic acquisitions, debt repayment, a 2.9% dividend yield, and continued share buybacks from more than $6 billion per year of free cash flow should lead to even greater shareholder returns. We re-initiated a small position in August.”