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After retreating to a three-star
rankfor the past several months,
Lockheed Martin (NYSE: LMT) has swayed enough
top-performing CAPS members to earn an upgrade to
four-starstatus. Among the 1,499 members posting opinions
on the defense firm, many have offered analysis and
commentary to explain their recent optimism.
Many investors think Lockheed will
benefitfrom continued defense spending at home and
abroad. Its F-35 fighter plane, with an engine built by
United Technologies (NYSE:UTX), has become a
top priority for the Pentagon, with the potential for
Lockheed to produce as many as 3,000 of the planes.
Furthermore, experts believe that Lockheed will
be a favoriteover
General Dynamics (NYSE: GD) to win a U.S.
Navy contract to build the next 10 Littoral combat ships.
Where
Boeing (NYSE: BA) played a key role in the
Bush administration's plan for European
missile defense, Lockheed and
Raytheon (NYSE: RTN) are expected to benefit
from the recent changes announced by the Obama
administration. And some investors point to a
growing trend of dealstaking place with U.S. allies in
the Middle East as yet another source of revenue.
Like
Northrop (NYSE: NOC), Lockheed saw pressure
on its earnings in the second quarter. But after Lockheed's
shares dropped recently,
Citigroup (NYSE: C)
upgraded the stock. Many CAPS members like
Lockheed's long-term prospects, since the
company has a good track record of being consistently free
cash flow-positive. Â And as a bonus, the company
pleased investors by recently
raising its dividendby
11%.                                                              Â
                  Â
Do you think Lockheed Martin deserves its raised status?
Add your thoughts in the comments box below on this page, or
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This article was originally published as
A Big Upgrade for Lockheed Martinon
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