As some companies stumble … some are still crushing it.
And Lockheed Martin (NYSE: LMT) is doing just that.
After experiencing a major economic downturn, a global pandemic and massive government stimulus over the past few months, you’d think a company that relies on budget money from governments might have done poorly.
But with a massive backorder of $140 billion worth of deals, short-term things like an economic recession didn’t faze the company.
Instead, it was able to report solid earnings and revenue growth for the second quarter. It beat analyst expectations on both line items. That helped send the stock higher.
After the stock’s latest rally on earnings, the question we all want the answer to is whether this rally is going to fuel even more gains for the stock.
This is a stock that has failed to get back to its pre-COVID-19 price levels. Most companies that are not directly impacted by the virus, such as tech stocks and online companies, have climbed well past their pre-COVID-19 price levels.
Lockheed Martin is still down more than 10% from its peak in February. Even though the company posted great results for the last quarter, analysts are not sending shares back to that level anytime soon.
In my latest Bank It or Tank It YouTube video, I break down everything you need to know about Lockheed Martin.
We take a look at its key fundamentals, sentiment and price chart. I’ll also give you my price target for the stock over the next twelve months to determine if this is a stock you want to bank on … or expect to tank.
Bank It — With Options
Lockheed Martin is a company that will continue to benefit from global threats and tactics. It’s $140 billion contract backlog will help it weather any short-term slumps.
But, as you can see in my Bank It or Tank It video, there’re several short-term trends to watch on this stock.
These key levels make for great entry and exit points into the stock, along with my overall view.
The best way to capitalize on the short-term price moves these key levels highlight isn’t by owning shares of the stock — it’s buying options.
Options give you leverage and exposure to the stock. But they also let you define the amount of money you’re willing to risk. You can benefit from high priced stocks at a much cheaper price.
With options, you are in a position to get a quick double-digit or even triple-digit return in just days.
They are my favorite way to capitalize on short-term moves in the stock market. There’s mispricing opportunities that come up practically every week in the stock market. And I know exactly how to take advantage of them.
I want you to be able to take advantage of these as well.
That’s why I’ve broken down my No. 1 approach to trading options in a simple 30-minute training video.
Click here to check out how I trade options.
Chad Shoop, CMT
Editor, Quick Hit Profits