Why LMT's build rate re-rates it

The thesis

Book-to-bill above one for several quarters is the tell here.

Defence budgets provide a floor under the order book regardless of macro.

What I'm watching

• margin incrementals
• build-rate guidance
• A clean move through the level I flag below

Positioning

Long on LMT, 3-18 months horizon. Conviction: Low. Supply-chain hiccups delay the margin story; sized accordingly.

Opinion, not investment advice. The author may or may not hold positions discussed.