a blue and white sign: A Lockheed Martin (LMT) Space Systems sign in Sunnyvale, California.

© Source: Ken Wolter / Shutterstock.com
A Lockheed Martin (LMT) Space Systems sign in Sunnyvale, California.

For years, investing in defense and aerospace paid off but that changed in the last year. Certification delays for the 737 MAX, made by Boeing (NYSE:BA), is clouding the airplane industry. It is also casting a shadow in well-run companies like Lockheed Martin (NYSE:LMT). The detail-oriented investor will look at the whole picture and realize that LMT stock, which spent much of the last few months in the $400 range, is on the verge of a break-out.

a close up of a sign: A Lockheed Martin (LMT) Space Systems sign in Sunnyvale, California.

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A Lockheed Martin (LMT) Space Systems sign in Sunnyvale, California.

Late last week, Lockheed management announced a few shareholder-friendly moves. This could help shares rebound from here.

Lockheed declared a $2.60 per share dividend, 20 cents higher than last quarter. Shareholders of record as of the close of business on Dec. 1, 2020, will collect the distribution.

The corporation’s board also authorized the buyback of another $1.3 billion of Lockheed stock. The total authorization for future repurchases is now around $3 billion.

Stock buybacks benefit investors because it lowers the share count and increases the earnings per share. In the second quarter, Lockheed posted revenue of $16.22 billion, up 12.43% from last year. Cash from operations topped $2.2 billion, while net earnings topped $5.79 per share.


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“I’m pleased to see continued strong operational and financial results this quarter as we remain focused on performing with excellence for our customers,” said Chief Executive Officer James Taiclet.

A Closer Look at LMT Stock

Given the favorable low-interest-rate environment, the company may re-evaluate its debt and go to the debt market to refinance. That would cut interest costs.

To lighten the cost burdens for governments, Lockheed said it cut its

Nearly half of New York City bars and restaurants that were open pre-pandemic may close permanently within a year due to the coronavirus pandemic, according to an audit released Thursday by State Comptroller Thomas DiNapoli.

If a third — about 8,000 — of the restaurants and bars close, the city would lose more than 100,000 jobs, the report says. If half, or 12,000, of the enterprises close, around 160,000 jobs will be lost.

The city brought back indoor dining at restaurants and bars on Wednesday with a limit of 25% of seating capacity plus additional requirements, including temperature checks, wearing masks, and leaving contact-tracing information. 

During the pandemic restaurants and bars largely closed or continued to operate for takeout and through delivery apps. 

But many have already closed and owners have been quoted as saying that they’ll have a tough time making the nut with a 25% capacity limit. 

“The industry is challenging under the best of circumstances and many eateries operate on tight margins. Now they face an unprecedented upheaval that may cause many establishments to close forever,” DiNapoli said.

The report shows how Covid-19 has devastated employment at eateries. 

In February 2020, more than 315,000 people were working in New York City’s restaurant industry. By April, restaurant employment had dropped 71% to 91,000 jobs as the city – hit hard by the pandemic – largely closed and locked down. 

“As rules loosened and outdoor dining was permitted, employment rose, reaching 174,000 jobs in August,” the DiNapoli report says.

In September almost 43% of restaurants and bars citywide received sidewalk-seating permits, including 50% of places in Manhattan, and over 40% for each of Brooklyn and Queens. But New York weather is turning cooler, and outdoor dining will not work well into the late fall and winter.

In June, the

Against that backdrop, the latest quarterly earnings results from Bed Bath & Beyond Inc. stand out, because they show the long-suffering home goods chain to be in comeback mode. 

Bed Bath & Beyond, which also owns stores such as Buybuy Baby and World Market, reported on Thursday that comparable sales rose 6% in the three months ended in August from a year earlier, its first gain on that measure since the end of 2016. Executives said on a conference call that the trend continued into September, suggesting the company is sustaining momentum as the crucial holiday season approaches. Despite recording a 89% increase in digital sales — which can crimp profitability because of shipping costs — the retailer managed to deliver a higher adjusted gross margin than a year ago. The improvements sent shares soaring more than 30% on Thursday morning.   

Bed Bath & Beyond is certainly benefitting from factors beyond its control. The pandemic has made people spend more time at home, and that has encouraged them to splurge on decorating projects and cookware. It’s also likely helped that, amid lingering safety concerns about going to brick-and-mortar stores, some of the company’s key competitors, the TJX Cos.-owned HomeGoods and HomeSense, do not offer e-commerce.  

But it’s more than that. CEO Mark Tritton, who has been in the job less than a year, appears to be succeeding at cleaning up the mess it took his predecessor, Steven Temares, well over a decade to make. Tritton has overhauled the C-suite, appointing new leaders for everything from merchandising to technology to supply chain. He has begun closing underperforming stores and modernizing its online offering. That showed in how quickly he moved to roll out in-store and curbside pickup of online orders — something the retailer should’ve been doing anyway — in the