10 Stocks That Could 10X Over the Next 5 Years

1) Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 56

Lockheed Martin Corporation (NYSE:LMT) is a security and aerospace company, which is engaged in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services.

Wall Street analysts remain optimistic about Lockheed Martin Corporation (NYSE:LMT) primarily because of an improved revenue growth outlook, de-risking of the F-35 program, and favorable market sentiments for the Missiles and Fire Control (MFC) segment. The resumption of F-35 deliveries should help Lockheed Martin Corporation (NYSE:LMT)’s stock for the next 12-18 months. Also, the planned production rate increases because of the US and international demand should aid the MFC segment.

In the past, the strong performance of this segment stemmed from higher global defense spending and the need for advanced missile systems across geopolitical hotspots. Wall Street assumes that this trend is likely to continue, offering a strong foundation for Lockheed Martin Corporation (NYSE:LMT)’s growth over the coming years. Moreover, increased defense spending in Europe and other regions, primarily because of geopolitical tensions, should help the company’s international business.

Lockheed Martin Corporation (NYSE:LMT) appears to be well-placed to benefit from this trend as its diverse portfolio of products and services align with the requirements of international customers. For FY 2024, the company expects net sales in the range of $70,500 million – $71,500 million and free cash flow of between $6,000 million – $6,300 million.

Susquehanna boosted its price target on the shares of Lockheed Martin Corporation (NYSE:LMT) from $540.00 to $565.00, giving a “Positive” rating on 24^th July. Wall Street believes that the trend of higher international defense spending creates a significant opportunity for Lockheed Martin Corporation (NYSE:LMT). With countries planning to modernize military capabilities due to evolving global threats, demand for the company’s advanced defense systems should grow.

While we acknowledge the potential of LMT as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than LMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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