Should you short your Pfizer (NYSE:PFE) and Lockheed Martin (NYSE:LMT) positions after an advance?

LMT Stock

USD 459.08 1.89 0.41%

Macroaxis Story

As many rational traders are trying to avoid industrials space, it makes sense to review Lockheed Martin Corp a little further and understand how it stands against Pfizer and other similar entities. We are going to break down some of the competitive aspects of both Lockheed and Pfizer.

Published over two months ago

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By analyzing existing primary indicators between Lockheed Martin and Pfizer, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Pfizer with a short position in Lockheed Martin. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Lockheed Martin has an asset utilization ratio of 239.89 percent. This implies that the company is making $2.4 for each dollar of assets. An increasing asset utilization means that Lockheed Martin Corp is more efficient with each dollar of assets it utilizes for everyday operations.

Should you short your Pfizer (NYSE:PFE) and Lockheed Martin (NYSE:LMT) positions after an advance?

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Lockheed or TTAZF is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Lockheed Martin dividends

A dividend is the distribution of a portion of Lockheed Martin earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Lockheed Martin dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Lockheed one year expected dividend income is about USD9.93 per share.

Dividend Yield is likely to gain to 0.0271 in 2023, whereas Payment of Dividends and Other Cash Distributions is likely to drop (2.9 B) in 2023.

	Last Reported	Projected for 2023
Payment of Dividends and Other Cash Distributions	-2.6 B	-2.9 B
Dividend Yield	0.027	0.0271
Dividends per Basic Common Share	12.19	10.40

Investing in dividend-paying stocks, such as Lockheed Martin is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Lockheed Martin must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Lockheed Martin. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Lockheed Martin's Liquidity

Lockheed Martin financial leverage refers to using borrowed capital as a funding source to finance Lockheed Martin ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lockheed Martin financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Lockheed Martin's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Lockheed Martin, but it might be worth checking our own buy vs. sell analysis

Correlation Between Lockheed and Tata Global Beverages

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Lockheed Martin together with similar or unrelated positions with a negative correlation. For example, you can also add Tata Global to your portfolio. If Tata Global is not perfectly correlated to Lockheed Martin it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Lockheed Martin, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between LMT and TTAZF for more information.

Breaking it down

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Lockheed Martin revenue. Based on the latest financial disclosure, Lockheed Martin Corp reported 64.72 B of revenue. This is much higher than that of the Industrials sector and significantly higher than that of the Aerospace & Defense industry. The revenue for all United States stocks is significantly lower than that of the stock. As for Pfizer we see revenue of 99.88 B, which is much higher than that of the Aerospace & Defense

	Lockheed	64.72 Billion
	Sector	3.5 Billion
	Pfizer	99.88 Billion

64.7 B

Lockheed

Sector

99.9 B

Pfizer

Will Lockheed Martin recuperate in December?

The jensen alpha is down to 0.12 as of today. Lockheed Martin Corp has relatively low volatility with skewness of 0.82 and kurtosis of 6.33. However, we advise all investors to independently investigate Lockheed Martin Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lockheed Martin's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lockheed Martin's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Lockheed Martin

Whereas some other companies in the aerospace & defense industry are either recovering or due for a correction, Lockheed may not be as strong as the others in terms of longer-term growth potentials. While some private investors may not share our view, we believe that right now is not a good time to increase your holdings in Lockheed. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Lockheed Martin.

Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Lockheed Martin. Please refer to our Terms of Use for any information regarding our disclosure principles.

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