LMT - Lockheed Martin Corporation

One of the largest defense companies globally. Stock has pulled back from highs despite unchanged long-term thesis. Q1 results were soft (flat revenue, slight margin contraction) but Q1 is historically the slowest quarter for defense companies. US defense budgets are not declining and European countries are spending more on defense than in decades.

The conservative defense play - only mega-cap defense stock up this year (a couple percent). Pays 2.6% dividend with growing payouts. However, counter-drone is only ~2% of revenue, so the Cuba theme won't drive the stock much. Sleep-well-at-night position but not for explosive gains.

Mentioned briefly in a discussion about government contractors and whether politics affects defense spending. No specific recommendation.

Paul notes Lockheed Martin is up significantly since the Iran conflict began and questions whether the opportunity has already passed for late buyers.

Up 45% in the last 3 months to over $670 per share. While defense stocks historically outperform during conflicts, Paul warns that the move has already happened and chasing at these levels is a poor investment.

Lockheed Martin has $194 billion in backlog. They produce missiles, THAAD systems, PAC-3 interceptors — systems actively being used in current conflicts. The recurring maintenance revenue model is highlighted as a key investment thesis.

Already up about 15%; much of the defense positioning may already be tapped out.

Defense contractor that typically catches a bid if military engagement escalates, as war means higher defense spending expectations.

Defense stocks benefit from multi-year procurement cycles and government contracts measured in hundreds of billions. There is a structural case for defense spending. Felix recommends diversified exposure rather than single stocks.

Mentioned alongside other defense stocks as seeing 'tremendous moves higher' and being a top political donor.