Lockheed Martin Corporation (NYSE: LMT) saw significant share price movement during recent months on the NYSE, rising to highs of US$395 and falling to the lows of US$348. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Lockheed Martin's current trading price of US$352 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Lockheed Martin’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Lockheed Martin worth?
Good news, investors! Lockheed Martin is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $459.14, but it is currently trading at US$352 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Lockheed Martin’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What does the future of Lockheed Martin look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 20% over the next couple of years, the future seems bright for Lockheed Martin. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since LMT is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on LMT for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LMT. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
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Article partially appeared on simplywall.st
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