1. Lockheed Martin Corporation (NYSE:LMT)
5-year Beta (monthly): 0.47
Number of Hedge Fund Holders: 56
Lockheed Martin Corporation (NYSE:LMT) is a Maryland-based global aerospace, defense, and security company. The company focuses primarily on the research, design, development, manufacture, and integration of advanced technological systems and services. The company’s expertise spans key sectors, including aerospace, military defense, cybersecurity, and space exploration.
The company operates through key segments, namely, Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. Its Aeronautics division is known for developing military several aircraft like the F-35 Lightning II, one of the most advanced fighter jets in the world. The Missiles and Fire Control division focuses on precision weaponry and advanced missile systems, while Rotary and Mission Systems covers naval warfare, radar technologies, and cybersecurity. Lastly, the Space segment handles satellite technologies, missile defense, and space exploration.
Lockheed Martin (NYSE:LMT) has been receiving a significant number of contracts recently, including the latest NASA contract. NASA has awarded the company with a contract to develop the next-generation GeoXO Lightning Mapper instruments for the National Oceanic and Atmospheric Administration (NOAA). The initial contract is valued at around $297 million for two instruments, with options for two more.
The innovation is designed to provide meteorologists with improved tools for issuing timely warnings about severe weather events, including rapidly intensifying hurricanes. The company’s joint venture (JV) with RTX, Javelin, has received several contracts in September.
Earlier in August, Reuters reported that Lockheed Martin’s (NYSE:LMT) JV secured a follow-on contract valued at $1.3 billion from the U.S. Army for Javelin missiles, which have been crucial in Ukraine’s defense against Russia. The contract is part of a broader agreement awarded last year, potentially worth up to $7.2 billion, which covers an unspecified quantity of missiles from 2023 to 2026.
Lockheed Martin (NYSE:LMT) tops our list of 10 best low beta stocks as its stock was held by 56 hedge funds, at a combined value of $2.056 billion in Q2. Two Sigma Advisors is the company’s largest shareholder with 855,600 shares worth $399.65 million as of the second quarter.
While we acknowledge the potential of Lockheed Martin Corporation (NYSE:LMT) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is promising and trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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