South Korea Orders $4.2 Billion in Military Helicopters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- Scale of Military Orders: South Korea has placed a $1.2 billion order with Boeing for upgrades to its AH-64E Apache helicopters while also planning to spend $3 billion on 24 MH-60R Seahawk helicopters, demonstrating a strong commitment to defense modernization.
- Profit Comparison: Boeing's military sales are expected to yield only $37 million in profit from the $1.2 billion order, reflecting a mere 1.1% margin, whereas Lockheed Martin's Seahawk deal could generate nearly $277 million in profit with a 9.2% margin, highlighting Lockheed's competitive edge in the defense market.
- Optimistic Congressional Approval: Although these military sales require U.S. Congressional approval, only one disapproval resolution has occurred in the last 50 years, and none in the last 30, indicating that both transactions are likely to pass smoothly, boosting investor confidence in Boeing and Lockheed.
- Market Performance Discrepancy: Boeing's stock is currently priced at 90 times trailing earnings, while Lockheed's is only 26 times, suggesting that Lockheed presents a more attractive investment opportunity in the current market environment, potentially making it the preferred choice for investors.
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Analyst Views on LMT
Wall Street analysts forecast LMT stock price to rise
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 516.500
Low
430.00
Averages
535.50
High
605.00
Current: 516.500
Low
430.00
Averages
535.50
High
605.00
About LMT
Lockheed Martin Corporation is an aerospace and defense technology company. The Company's segments include Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The Aeronautics segment is engaged in research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. The MFC segment provides air and missile defense systems; tactical missiles and precision strike weapon systems; logistics; fire control systems; engineering support and integration services. The RMS segment designs, manufactures, services and supports various military and commercial helicopters, sea and land-based missile defense systems. The Space segment is engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Critical Design Review Progress: The NGI program is advancing towards its Critical Design Review, which will validate whether the system's design is ready for production, marking a technological leap for Lockheed Martin in countering advanced intercontinental ballistic missile threats.
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