11 Best Aerospace and Defense Stocks to Buy Right Now

4. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 58

Lockheed Martin Corporation (NYSE:LMT) is a major international company that specializes in security and aerospace. The company focuses on creating advanced technologies and systems ranging from new aircraft to developing missile defense systems. They produce a wide range of military aircraft, missiles, satellites, and space systems. Its fiscal 2023 annual report shows that the company generated 96% of its revenue from defense-related sales.

The current geopolitical environment is characterized by ongoing conflicts and with Donald Trump’s return to the presidency in 2024 defense budgets are expected to rise higher thereby increasing orders for Lockheed Martin Corporation (NYSE:LMT). In fact, the company already has reached a record high backlog as its third quarter 2024 order backlog stood at more than $165 billion.

The company is well-known for producing the F-35 fighter jet, which is a cutting-edge military aircraft designed for various combat roles. During the third quarter management reported delivering 48 F-35s. In addition, Taiwan is considering purchasing 60 F-35 fighter jets from the company. Taking confidence from its year-to-date performance, management has raised its full-year guidance from the midpoint of $70.5 billion to $71.3 billion in net sales.

Conventum – Alluvium Global Fund stated the following regarding Lockheed Martin Corporation (NYSE:LMT) in its Q3 2024 investor letter:

“Lockheed Martin Corporation (NYSE:LMT) is a new investment for the Fund. This defence contractor had been on our radar for some time, and in July we pulled the trigger. Call it dumb luck, but by quarter’s end that initial 2.0% tranche had grown to 2.4% as a result of its 25.8% return. There was reason for it. In the interim Lockheed’s management reported impressive results revealing its strong backlog and upgrading its full year guidance. We increased our estimates slightly, but not enough to warrant increasing our position at what we now see to be a reasonably (perhaps slightly highly) priced business.”