Top 5 Defense Contractors in 2021

1. Lockheed Martin Corporation (NYSE: LMT)

Number of Hedge Fund Holders: 50

Lockheed Martin Corporation (NYSE: LMT) has a $74.913 billion defense contract with the U.S. Department of Defense. The company was founded in 1995 when Lockheed Corporation merged with the Martin Marietta Company.

In its Q4 2020 investor letter, RiverPark Advisors highlighted a few stocks and Lockheed Martin Corp (NYSE:LMT) is one of them. Here is what the fund said:

“Despite better-than-expected third quarter results, LMT shares were weak for the quarter as defense spending is expected to be flat for the coming year. With a record $150 billion backlog and almost 30% of its revenue coming from building F-35 aircraft with deliveries forecast to reach 180 per year in 4-5 years (3Q’s revenue upside was from the F-35), we believe LMT should grow at a higher rate than overall defense budget growth and Street expectations over the next several years. Further, strategic acquisitions (LMT acquired AJRD for $4 billion in late December), debt pay down, a 3% dividend yield, and continued share buybacks from $6 billion per year of free cash flow should lead to even greater shareholder returns.”

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