We recently published a list of Jim Cramer’s Latest Portfolio Heading Into 2025: Top 10 Stocks. In this article, we are going to take a look at where Lockheed Martin Corporation (NYSE:LMT) stands against other stocks in Jim Cramer’s latest portfolio heading into 2025.
Jim Cramer in a latest program reiterated his view that the market is currently oversold and told investors about his methodology of analyzing market selling and buying indicators based on an oscillator.
“Once it touches minus 5, you need to hold your nose and start buying, no matter how bad it looks. Minus 5 means we’re oversold and due for a bullish bounce. When the oscillator goes below minus 8, as it did last night, the only thing you can do is buy hand over fist. Under no circumstances should you sell with the oscillator below minus 8 because, at that point, the selling ship has sailed. The odds are against you if you sell into an extremely oversold market.”
Cramer then mentioned a few historical data points explaining the returns one could get if one invests when the market is in the oversold territory.
“If you bought the S&P 500 Index when the oscillator hit minus 8, you would have averaged a 2.88% gain within the next 30 days. That’s over a 10-year period, with the median up 4.7%. It gets even better 60 days out— the average gain was 8.93%, and the median was over 9%. Those are some huge moves. How about the odds? Thirty days after the oscillator hits minus 8, as it did last night, the market was up 70% of the time. Sixty days after, the market was up 80% of the time. That’s an extraordinarily reliable pattern, people. Nothing in the market is a sure thing, of course, but the frequency of those gains means the odds are heavily in your favor if you buy in an oversold market this time.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we watched several latest programs of Jim Cramer and picked 10 stocks he is talking about. With each company, we have mentioned its latest hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A military aircraft in flight, showing the strength of the company’s combat & air mobility capability.
Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Investors: 58
Jim Cramer in a recent program recommended investors to stay away from Lockheed Martin:
“I think that this, I love Jim Taiclet (LMT CEO). I think he’s terrific but I don’t like in terms of Ukraine it would not be it’s not good for the… war is unfortunately better for Lockheed Martin Corporation (NYSE:LMT) than not and I think the Stock’s going down correctly I would not touch this thing until it broke 500 but it’s run by Jim he’s really fabulous let’s but it just doesn’t matter at this point.”
For the full year 2024, Lockheed expects a 5% increase in sales. Long-term contracts is a key strength for the company. In the third quarter, Lockheed Martin Corporation (NYSE:LMT) shipped 48 F-35 jets and anticipates delivering between 90 and 110 aircraft by year-end. The company is also experiencing solid growth in its Missiles & Fire Control division, with an 8% year-over-year increase in sales and a strong 14.4% operating margin. The upcoming Trump administration and expected increase in the defense budget could prove to be a long-term growth catalyst for the stock.
Ariel Focus Fund stated the following regarding Lockheed Martin Corporation (NYSE:LMT) in its Q3 2024 investor letter:
“Additionally, leading global defense contractor Lockheed Martin Corporation (NYSE:LMT) increased following a top- and bottom-line earnings beat and subsequent raise in full year guidance. The company also announced three significant F-35 contracts underscoring the growing tailwinds for sustainment efforts and continued engineering advancements as the fleet continues to expand. LMT continues to be well positioned in the defense sector.”
Overall, LMT ranks 6th on our list of Jim Cramer’s latest portfolio heading into 2025. While we acknowledge the potential of LMT, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an 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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Disclosure: None. This article is originally published at Insider Monkey.
