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Ok let's dive in!
Lockheed Martin is still officially in a bear market. It is still 30% away from its all time high, with the technicals on the weekly indicating very tough days ahead for LMT holders.
Tale of two stories here when it comes to very good fundamentals but very poor technical indicators.
• P/E 14.64 (Very attractive)
• Forward P/E 13.08 ( Boeing Forward P/E is 156.29 !!)
• P/ FCF 27.57
• Debt/Eq 2.56 (Normally I would say this is really high in a different sector, but money is cheap right now and these guys are in a field that requires massive capital output...this is why if I see a level this high in a utility provider I am ok, but if I see a level this high in a financial or tech I run!)
• EPS 23.4
• EPS this Y +25.8%
• Sales Q/Q +8.7%
• ROE +171% (again justifies that debt/equity level as they use debt very...prudently)
• ROI +47%
• Gross Margin 13.3%
• Net Margin 10.2% (Stunning) ..especially when we see the rise in price recently in Boeing . Boeing has a 2.9% GM and a -7% Net Margin guys. Yes BA are losing money with a forward P/E of 156??
• Insiders Own 0.08%
• Insider Transactions over past 3 M (0.00)
• Institutions Own 77.9%
• Institution 3 Month Transactions -0.42%
So what do we do when the technicals say run and the fundamentals say buy? We listen to both!
The strategy I like to take ahead a potential trade when I see two conflicting tales are either run. Or wait for the technical indicators to display signs of a potential bottoming pattern. Next Chart will display . Finding a position at a lower price heading into the mean with good underlying fundamentals is a much better approach, although it takes patience and time as I think the idea of playing a short off the TA or a long strictly off the FA would be... short sighted. Best tactic is to embrace both and wait.
Friend please share with me & the wonderful TradingView community how you think we should trade Lockheed Martin! If you have a LMT chart yourself please be especially sure to share it with me!