The partial government shutdown appeared to have little negative impact on stocks of large defense contractors that were forced to adopt contingency plans as a result of the impasse.
Companies like Lockheed Martin Corp. (LMT) had feared that the shutdown would adversely affect operations, costs and production schedules. The aerospace giant runs the largest defense program in U.S. history, the F-35 Lightning II Fighter Jet, currently under construction at the company’s Fort Worth plant.
On Tuesday afternoon, the Bethesda-headquartered company's stock was trading at $328.79, down 0.06%.
Also today, the stocks of defense contractors like Boeing (BA) and Raytheon Co. (RTN) were mostly unchanged. Boeing shares were trading at $338.45, up 0.13%. Raytheon was down 0.06%.
Last night, a new law signed by President Donald Trump holds a federal budget in place until Feb. 8. Congressional leaders will have to rehash a new plan before then to avoid another partial shutdown.
A spokesman for Lockheed Martin said early today he didn't expect a new statement from the company today.
Lockheed Martin
The company's stock price is close to a 10-year high. It has been buoyed in recent years by consistent signals from Washington for more military spending. On GuruFocus, the company’s financial strength was 5 out of 10 and its profitability and growth was 7 out of 10.
It has a price-earnings (P/E) ratio of 26.62, or higher than 75% of its 130 or so global competitors. Its price-book (P/B) ratio is 45.37 and its price-sales (P/S) ratio is 1.95, or lower than 62 percent of its competitors.
It has a return-on-equity (ROE) of 209.22 or higher than 93% of the sector. Its return-on-assets (ROA) is 7.47 or 91% higher than the sector.
Several of guru investors have been drawn to Lockheed stock. Joel Greenblatt (Trades, Portfolio) purchased shares of the company as of Sept. 30. He owns 119,471 shares of the company.
Other gurus include John Rogers (Trades, Portfolio) with 30,317 shares, Mario Gabelli (Trades, Portfolio) with over 6,600 shares and Ken Fisher (Trades, Portfolio) with over 4,500 shares.
Most of the gurus purchased the stock when it was valued between $250 and $310 a share, according to GuruFocus records.
According to the Peter Lynch chart, the stock is overvalued. Its median price is $184.90.
Boeing
Late Tuesday morning, Chicago-based Boeing was trading at $3,384.45 a share, up 0.13%. The company has seen its stock price rise by over 100% in the last year.
It's ranked by GuruFocus 6 out of 10 for financial strength and 8 out of 10 for profitability and growth.
It has a P/E ratio of 31.10, higher than 53% of its competitors, a P/B of 185.77, a P/S ratio of 2.28, or lower than 59% of the industry.
It has an ROE of 1632.20, or 99% higher than the industry. And its ROA is 7.45, or 83% higher.
Its guru investors include the T. Rowe Price Equity Income Fund (Trades, Portfolio); Ken Fisher (Trades, Portfolio); Mario Gabelli (Trades, Portfolio); Tom Gayner (Trades, Portfolio) and Hotchkis & Wiley.
According to the Peter Lynch chart, Boeing is over valued with the median at $163 a share.
Raytheon
Early Monday, Raytheon’s trading stood at $195.26, down 0.06% a share. The company is headquatered in Masschusetts.
GuruFocus ranks it 6 out of 10 in financial strength and 7 out of 10 in profitability and growth. Its P/E ratio is 26.72, or lower than 56% of the industry. It has a P/B ratio of 5.24 or 80% lower than its competitors; and a P/S ratio of 2.32, lower than 82% of the industry.
Its ROE is 20.47, or 84% higher than its competitors. Its ROA is 7.18 or 79% higher than the industry.
Guru investors include Barrow, Hanley, Mewhinney & Strauss (Trades Portfolio), which owns 1.4 million shares. Others include Ken Fisher (Trades, Portfolio); Joel Greenblatt (Trades, Portfolio); NWQ Managers (Trades, Portfolio). Ken Fisher (Trades, Portfolio) sold out all shares back in March 2017.
According to the Peter Lynch chart, the stock is overvalued. The median price is $110 a share.
