After reporting Q3 results, Lockheed Martin (LMT) is down $9 in mid-day trading. The defense company has ridden to highs that appear very unsupported by the actual results.
The stock still trades above $300 on the dip, which one needs to keep in perspective considering Lockheed Martin traded around $150 back in 2014. My previous investment research recommended that investors continue riding the stock higher, though cognizant that the time to exit Lockheed Martin was on the horizon due to a stretched value.
The question with holding onto Lockheed Martin was one regarding momentum, not value. The defense company only forecast earning $12.45 for the year prior to updating 2017 guidance with the Q3 report, yet the stock recently traded at a 52-week high of $322.
