Lockheed Martin

Methodology

Lockheed Martin's multi-year defense contracts and massive backlog create exceptional earnings visibility, making this calculation straightforward and reliable. F-35 production and missile defense programs provide long-term revenue predictability. Government budget stability and program continuity allow for confident earnings projections across multiple years.

Methodology

Lockheed typically trades at low PEG ratios reflecting the mature, slower-growth nature of large defense contractors despite high earnings quality. The metric works well for comparing against defense peers, though investors should normalize for pension charges and one-time contract adjustments. Geopolitical tensions can drive valuation premiums that appear expensive on PEG alone.

Methodology

Lockheed offers an attractive and growing dividend supported by robust government contract cash flows, making PEGY considerably more compelling than standalone PEG analysis. Management maintains disciplined capital allocation with consistent dividend increases. The meaningful yield component appeals to investors seeking both stability and income from defense exposure.