12 Best Long-term Stocks to Invest in for High Returns

4) Lockheed Martin Corporation (NYSE:LMT)

Average Upside Potential: 36.9%

Number of Hedge Fund Holders: 58

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. Truist Financial analyst, Michael Ciarmoli, gave a new “Buy” rating on the company’s stock, backed by factors highlighting the potential growth and stability. The analyst expects demand for defense capabilities, mainly in the context of U.S. and NATO spending, to remain strong, which is expected to support Lockheed Martin Corporation (NYSE:LMT)’s growth prospects.

Furthermore, the analyst hinted at the company’s diverse portfolio in the defense sector, spanning air, land, sea, space, and cyber domains, which aligns well with national security priorities. The F-35 program is expected to maintain steady production and contribute to Lockheed Martin Corporation (NYSE:LMT)’s revenue. Overall, increased defense budgets and demand continue to paint an optimistic picture for the company. Its diverse portfolio of products and services, such as fighter jets, transport aircraft, helicopters, and various missile systems, is expected to provide a competitive edge.

Delaware Funds by Macquarie, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:

“Finally, we added Lockheed Martin Corporation (NYSE:LMT) to the portfolio. While demand for the company’s products remains strong as a function of increased defense industry expenditures and a favorable geopolitical backdrop, margins have been impaired by government contracts that were fixed in price before the onset of rapid inflation. We believe the longer-term profit outlook is inflecting as mispriced contracts are replaced by more favorable ones, beginning in 2025. As several observers have noted before, defense companies are a great insurance policy for what you don’t know, a saying that certainly rings true amid escalating conflict across the globe.”