LMT Stock: U.K. Plan Could Send Lockheed Martin Corp. Soaring

Lockheed Martin StockCybersecurity Hidden Catalyst for LMT Stock

Jet fighters and guided missiles are effective against hard targets thanks to their unprecedented accuracy, but the air campaign is not sufficient in itself. Lockheed Martin Corporation (NYSE:LMT) is a complete defense company, designing and assembling complex aircraft and their related weapon systems, as well as developing the technology and software to help foil computer hacking attempts from cyber terrorists. LMT stock, which has experienced record highs in 2015, is poised to grow much further as the market becomes aware of all the areas of defense, which the company addresses.

In the wake of the Islamic State (IS) Paris attacks on Friday, the governments of the countries involved in confronting the terrorist group’s threat around the world have become increasingly concerned by its ability and potential to launch cyber attacks and bombings. The British government has issued a specific warning that IS plans to attack key computer infrastructure in the U.K., according to Chancellor of the Exchequer George Osborne. Osborne warned British intelligence that the threat of a “cyber attack” against airports, power stations, and hospitals is very serious and “could be lethal.”

“Isil are already using the internet for hideous propaganda purposes; for radicalisation, for operational planning too. They have not been able to use it to kill people yet by attacking our infrastructure through cyber attack. They do not yet have that capability. But we know they want it, and are doing their best to build it.” (Source: “Britain will launch cyber attacks on terrorists, George Osborne warns,” The Telegraph, November 17, 2015.)

British Government Doubling Cybersecurity Funding

Such intelligence agencies as MI5 or MI6 of James Bond 007 fame will be seeing the number of agents and computer experts increasing by some 15% over the next few years. The U.K. Government Communications Headquarters (GCHQ) will establish a “National Cyber Skills Centre,” which will be dedicated to preventing and managing Internet attacks.

IS has brought the issue about cybersecurity to the forefront again. The organization “Anonymous” has threatened to use cyber attacks to break into IS terrorist-operated networks, even though it has itself launched attacks against a number of government and institutional infrastructure, from Scientology to Sarah Palin, the CIA, several governments, and any group or business supporting regulation of the Internet.

Anonymous typify the hacker ethic, which, while not being rigidly codified, revolves around the principle of the freedom of access to information and a rejection of centralized authority. While Anonymous has taken a strong stance against IS, it too remains a threat in the longer-term, which means that cybersecurity is not just a flavor-of-the-month issue; it will only intensify as computer technology evolves.

Lockheed Martin a Play on Cybersecurity

Lockheed Martin shared ideas about its potential threat with the public sector partners and suppliers. Lockheed Martin stock has managed to turn cybersecurity into another source of profit. LMT was one of the founders of the first American forum for sharing defense industry information.

Lockheed Martin’s stock benefits from the company’s comprehensive involvement in cybersecurity, which includes the establishment of commercial and industrial partnerships to strengthen related services to more than 200 customers around the world across a variety of industries and government departments.

Lockheed Martin shares information to improve resilience against sophisticated threat, given that the company has been at the forefront of cyber defense, even before the term meant anything to the public. The threat landscape is always evolving and Lockheed Martin has the expertise to change in order to always be a step ahead of its opponents.

The nature of current global threats has brought the concept of cybersecurity to the limelight. As the public and the market become more aware of Lockheed Martin’s primary role in developing the tools to confront this threat, LMT stock will gain. Anonymous’ threat against the Islamic State has already enhanced the visibility of cybersecurity and cyber attacks on the global stage. Beyond the gains related to potentially higher sales of the F-35 fighter jet and other offensive and defensive tools, LMT stock should hit $250.00 in the medium-term, if not the short-term.

Lockheed Martin Chart

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For those unfamiliar with Anonymous, it is a global network of groups and individuals who band together around activism campaigns on the Internet, generally involving the use of hacking techniques that are able to break through ever more sophisticated computer security systems. As for IS, it uses the Web as a channel for propaganda and recruitment. Reporting on the Internet is a central element of the Caliphate’s strategy, which increases demand for Lockheed Martin’s products and services, more specifically cybersecurity in this case.

Given Lockheed Martin’s nature and the stubborn nature of those threatening the world, the company has to occupy the top spot globally in the field of security, aerospace, and information technology. LMT itself suffered a cyber attack in 2003, which taught the company important lessons in the subject. (Source: “Security in Cyberspace: Combatting Distributed Denial of Service Attacks,” University of Ottawa Law & Technology Journal 2003–2004; 231(1): 231–261.) This fact has strengthened the company’s resilience, pointing out the organized nature of cyber attacks and the hackers’ sophisticated abilities.

Here’s the Bottom Line on LMT Stock

Lockheed Martin launched a structured approach to confronting cyber threats, developing its “Intelligence Driven Defense” and “Cyber Kill Chain.” (Source: Intelligence-Driven Computer Network Defense, Lockheed Martin Corporation, last accessed November 17, 2015.) Today, LMT’s cyber analysts, some of the best such professionals in the world, ceaselessly collect data about opponents to better interpret behaviors and patterns.

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