Is Lockheed Martin stock a buy right now?
Lockheed Martin (LMT), one of the cornerstones of the US aerospace and defense sector, is currently trading near $477.72 on the New York Stock Exchange, with average daily volume exceeding 1.5 million shares. Following a robust start to 2025, the company reported a 4% rise in quarterly sales and an expanding backlog of $173 billion — securing revenue visibility for over two years. While a recent combination of strong Q1 results and key contract wins in missile and space systems has bolstered near-term optimism, the stock’s longer-term momentum remains somewhat tempered by a pullback over the past six months. Nevertheless, market sentiment is largely constructive, as investors value Lockheed Martin’s disciplined positioning in both defense innovation and shareholder returns. Short-term moving averages signal buying interest, even as longer-term indicators prompt caution. The sector itself is in focus amid escalating global security demands, benefiting established players like Lockheed Martin. With a stable dividend yield of 2.76% and a positive outlook corroborated by ongoing R&D investment, LMT attracts careful attention from both income and growth-oriented investors. The consensus of over 32 national and international banks has established a target price of approximately $621 for Lockheed Martin, signaling continued confidence in the company’s ability to deliver value and maintain sector leadership.
- Solid $173 billion backlog ensures revenue visibility beyond two years.
- Strong quarterly sales growth and improving profit margins across vital business segments.
- Low beta (0.39) reflects reduced volatility versus broader market indices.
- Attractive and consistent dividend yield of 2.76% with ongoing share repurchases.
- Robust R&D investment sustains technological leadership in aerospace and defense.
- Dependence on U.S. government contracts may expose the firm to policy-driven revenue fluctuations.
- Long-term technical signals warrant monitoring amid broader sector volatility.
- What is Lockheed Martin?
- How much is Lockheed Martin stock?
- Our full analysis on Lockheed Martin </b>stock
- How to buy Lockheed Martin stock in United States?
- Our 7 tips for buying Lockheed Martin stock
- The latest news about Lockheed Martin
- FAQ
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At HelloSafe, our expert has been monitoring Lockheed Martin's performance for more than three years. Every month, hundreds of thousands of users across the United States rely on us to analyze market trends and uncover the best investment opportunities. Our analyses are offered for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never received, and will never receive, compensation from Lockheed Martin.
What is Lockheed Martin?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | Based in the U.S., Lockheed Martin benefits from significant Pentagon contracts. |
| 💼 Market | New York Stock Exchange (NYSE) | LMT trades on the NYSE, offering high liquidity for investors. |
| 🏛️ ISIN code | US5398301094 | The ISIN uniquely identifies Lockheed Martin shares globally. |
| 👤 CEO | James Taiclet | CEO James Taiclet brings aerospace and telecommunications industry experience. |
| 🏢 Market cap | $111.93 billion | Strong market cap reflects Lockheed’s leadership in the defense sector. |
| 📈 Revenue | ~$74 billion (projected 2025) | Robust revenue driven by military contracts and large order backlog. |
| 💹 EBITDA | ~$9.6 billion (projected 2025) | High EBITDA highlights healthy underlying profitability and operational efficiency. |
| 📊 P/E Ratio (Price/Earnings) | 20.6 (TTM), 17.5 (Forward) | P/E suggests the stock is fairly valued; forward P/E indicates expected earnings growth. |
How much is Lockheed Martin stock?
The price of Lockheed Martin stock is rising this week. As of now, LMT is trading at $477.72, reflecting a slight dip of -0.01% over the past 24 hours but recording a solid gain of 2.34% over the week. The company holds a market capitalization of $111.93 billion and reports an average three-month trading volume of about 1.25 million shares. Lockheed Martin’s P/E ratio stands at 20.62, with a dividend yield of 2.76%, and its stock beta is 0.39—indicating lower volatility compared to the overall market. These figures highlight stable performance and income potential for investors seeking resilience and steady growth in the U.S. market.
Check out the USA's best brokers!Compare brokersOur full analysis on Lockheed Martin stock
Having analyzed Lockheed Martin’s (NYSE: LMT) most recent financial results, reviewed the stock’s price trajectory over the last three years, and integrated insights from core financial metrics, technical indicators, market data, and peer comparisons using our proprietary algorithms, our attention is keenly drawn to this formidable player in aerospace and defense. As we explore whether prevailing conditions and forthcoming catalysts could make Lockheed Martin a strategic entry point into the high-growth defense technology sector in 2025, let’s dissect the case for renewed investor enthusiasm around this iconic security contractor.
Recent Performance and Market Context
Lockheed Martin’s stock has demonstrated notable resilience and adaptability in a volatile macroeconomic landscape. As of May 2, 2025, LMT trades at $477.72, positioning itself at the mid-range of its 52-week interval ($418.88 – $618.95). Over the past year, the stock has eked out a modest but positive +3.46% return, and recent price action reveals a constructive short-term rebound—up +2.34% over the past week and +6.48% over the past month. These gains mark a decisive turnaround from a trough six months ago, when LMT was down 12.40%, reflecting both sector rotation into defense equities and renewed confidence in Lockheed’s growth narrative.
Positive recent events have further supported sentiment: Q1 2025 earnings, reported in April, not only topped expectations but also showcased improved profitability, margin expansion, and robust cash flow. Moreover, Lockheed’s aggressive capital allocation policy—returning $1.5 billion to shareholders via dividends and buybacks in Q1 alone—underscores management’s confidence in future prospects.
On the macro level, rising global defense budgets, intensifying geopolitical tensions, and substantial new contract wins are yielding favorable sector tailwinds. In such an environment, demand visibility for premier defense contractors has rarely looked stronger, making LMT an increasingly prominent candidate for growth- and income-seeking portfolios alike.
Technical Analysis
- Key Technical Indicators:
- RSI (14) at 59.95 remains in neutral territory—suggesting the stock is building up for a move but is not yet overbought.
- MACD at 5.78 continues to signal positive short-term price dynamics.
- Moving averages (5-, 20-, 50-, and 100-day) all flash “buy” signals, with current price action persistently above these levels.
- The only technical caution derives from the 200-day moving average—currently at $506.79—which remains a medium-term resistance line.
- Support and Resistance:
- Strong underlying support can be seen at $467.10, $470.23, and $473.05, levels that have been retested and reinforced during recent trading.
- Resistance sits at $479.00, $482.13, and $484.95. A clear break above these thresholds could accelerate bullish momentum, potentially catalyzing a new leg higher.
- Technical Sentiment:
- Short-term momentum, underpinned by a series of higher lows and positive moving average crossovers, aligns with a scenario in which lockstep buying could intensify, particularly if macro or internal catalysts materialize.
In summary, the overall technical structure supports an optimistic bias for near-to-medium-term appreciation, especially should LMT decisively pierce its current resistance band.
Fundamental Analysis
- Revenue and Profitability:
- Q1 2025 sales expanded 4% year-on-year to $18 billion, with net earnings of $1.7 billion ($7.28 per share).
- Segment performance exceeded expectations: Aeronautics, Missiles and Fire Control, and Rotary and Mission Systems all posted robust growth in both sales and margins—led notably by a 50% operating profit gain in MFC.
- Importantly, the firm’s $173 billion backlog secures revenue visibility for over two years, providing an enviable foundation for strategic planning and shareholder returns.
- Valuation:
- At a forward P/E of 17.48, Lockheed Martin offers an attractive multiple for a global leader with unique scale, R&D prowess, and mission-critical contracts.
- The trailing P/E of 20.62 and price/sales ratio of 1.58 reaffirm that investors are currently paying modest premiums for future growth, especially relative to sector peers.
- The dividend yield of 2.76% beats both the S&P 500 average and most defense competitors, further buoyed by Lockheed’s commitment to annual dividend increases.
- Structural Strengths:
- LMT’s leading market share in defense aviation (F-35 program), missile systems, and satellite technologies underpins a highly diversified revenue stream.
- Sustained R&D investment ($850 million in Q1 2025) ensures Lockheed maintains technological leadership in a sector where continual innovation is non-negotiable.
- A strong brand, deeply entrenched government relationships, and best-in-class execution capabilities collectively confer immense competitive advantages.
Together, these fundamentals justify renewed investor interest—particularly when evaluating risk-adjusted returns and sustainable long-term compounding.
Volume and Liquidity
- Trading Volume:
- Consistently high daily volume evidences sustained liquidity and market confidence, offering investors flexibility and minimal risk of slippage even for large orders.
- The stock’s mature float is conducive to efficient price discovery and dynamic valuation adjustments—creating fertile ground for short-term trades and longer-term accumulation alike.
- Implication:
- This liquidity profile not only ensures resilience during market turbulence but also facilitates tactical positioning ahead of major events (such as earnings or new contract disclosures).
Catalysts and Positive Outlook
- F-35 Program: Ongoing strong global demand for the F-35 fighter jet portfolio promises years of high-margin deliveries and aftermarket revenues.
- Missile and Defense Systems Expansion: The company is scaling up production on JASSM, LRASM, and precision strike missile programs, with new contracts worth up to $10 billion fuelling future growth.
- Space Business Upside: Despite a slight YoY dip in Q1 segment sales, higher-profit civil and commercial space contracts continue to provide non-cyclical earnings ballast.
- ESG and Innovation: Lockheed’s strategic embrace of digital technologies, cyber-resiliency, and green defense aligns with global regulatory trends and positions the firm favorably for future government and allied procurements.
- Balanced Capital Allocation: Ongoing buybacks and dividend increases deliver tangible, recurring value to shareholders.
- Increasing Global Defense Spending: Heightened geopolitical instability is driving an acceleration in allied defense budgets, supporting a multi-year procurement super-cycle that benefits sector leaders like Lockheed.
- Management Continuity and Vision: The installation of a new CFO, Evan Scott, alongside CEO James Taiclet, signals operational focus and strategic agility for 2025 and beyond.
Investment Strategies
- Short Term: The technical setup—marked by bullish moving averages and consolidation just below a key resistance—makes the current price zone ($477–$480) attractive for tactical purchases ahead of potential breakout events, such as contract announcements or sector upgrades.
- Medium Term: Investors who initiated positions during the pullback to support ($467–$473) may benefit from adding to holdings, as both earnings visibility and funding tailwinds (e.g., U.S. defense appropriations) are set to intensify.
- Long Term: Structural tailwinds, the immense order backlog, and a best-in-class dividend yield provide sound rationale for holding LMT as a core position within blue-chip or income-focused portfolios.
- Ideal Positioning: For those seeking optimal timing, periodic retracements toward strong support levels offer compelling windows to accumulate shares with limited downside and asymmetric upside should the next leg up commence.
Is It the Right Time to Buy Lockheed Martin?
Evaluating the confluence of robust fundamentals, a multi-year order backlog, strong free cash flow, a generous dividend yield, and clear evidence of renewed momentum in both technical structure and market sentiment, Lockheed Martin seems to represent an excellent opportunity within the aerospace and defense domain as we approach mid-2025. The stock’s performance rebound, coupled with new growth drivers—particularly in advanced missiles, space, and digital defense—positions the company at the forefront of the sector’s next value-creation cycle.
The presence of well-defined support, growing institutional confidence, and a reaffirmed financial outlook underpin the potential for renewed upward price discovery. For investors seeking to capitalize on secular trends—increased defense spending, global security, and technological superiority—LMT’s offering is especially compelling. The prudent, diversified, and innovation-led strategy pursued by management further enhances conviction in the sustainability of Lockheed’s growth trajectory.
In summary, Lockheed Martin’s current profile—buoyant short- and mid-term technicals, durable core strengths, solid management, and an attractive valuation relative to defensive growth peers—justifies renewed, serious consideration for investors seeking exposure to the defense technology sector. The stock may very well be entering a new bullish phase, marked by both reliable income and capital appreciation potential, making it one to watch closely as the market transitions into the second half of 2025.
For those searching for a cornerstone position in an increasingly vital sector, Lockheed Martin stands out as a powerful blend of stability, innovation, and upside, warranting close attention as a portfolio-enhancing opportunity.
How to buy Lockheed Martin stock in United States?
Buying Lockheed Martin (LMT) stock online is both simple and secure when you use a regulated broker in the United States. There are two main ways to invest: buying shares outright (spot or cash buying), or trading Contracts for Difference (CFDs), which allow you to speculate on price movements with leverage. Both methods offer retail investors easy access to the NYSE-listed stock, from desktop or mobile platforms. Spot buying is suited for those seeking long-term ownership and potential dividends, while CFDs attract traders aiming to profit from shorter-term price changes. You’ll find a detailed broker comparison further down this page.
Cash Buying
A cash (or spot) purchase means you become the legal owner of Lockheed Martin shares in your brokerage account. This approach is ideal for long-term investors who want exposure to the company’s growth and to benefit from any dividends paid. Typical fees for U.S. online brokers include a fixed commission per order, often around $0 to $5 per trade, depending on the platform.
Concrete Example
Suppose the current Lockheed Martin share price is $477.72. With a $1,000 investment, and accounting for a $5 brokerage fee, you could purchase approximately 2 shares (totaling $955.44), with $39.56 left in your cash balance.
Gain scenario: If the share price rises by 10%, your 2 shares would be worth about $1,050.53.
Result: That’s a $95.09 gross gain, or +10% return (excluding any tax).
Trading via CFD
CFD (Contract for Difference) trading lets you speculate on Lockheed Martin’s share price without actually owning the stock. You can buy (“go long”) or sell (“go short”) and often apply leverage to amplify potential returns. CFD platforms typically charge a spread (the difference between buy and sell price), and may also apply overnight financing fees if you keep positions open overnight.
Concrete Example
You open a CFD position on Lockheed Martin stock with a $1,000 deposit and 5x leverage, giving you market exposure of $5,000.
Gain scenario: If the stock rises by 8%, your total gain would be 8% × 5 = 40%.
Result: That’s a $400 profit on your $1,000 deposit (before considering fees).
Final Advice
Before investing, it’s essential to compare brokers’ commissions, spreads, account types, and user experience, as these can affect your long-term gains. The right choice depends on your objectives: cash buying suits long-term holders and dividend seekers, while CFDs appeal to active traders comfortable with higher risk. A comprehensive broker comparison is available further down the page to help you make an informed decision.
Our 7 tips for buying Lockheed Martin stock
| 📊 Step | 📝 Specific tip for Lockheed Martin |
|---|---|
| Analyze the market | Evaluate U.S. and global defense spending trends and government budgets, as Lockheed Martin’s sales are closely tied to military contracts and policy changes. |
| Choose the right trading platform | Select a U.S. brokerage that offers access to NYSE-listed stocks, competitive trading fees, and flexible tools for tracking Lockheed Martin. |
| Define your investment budget | Decide how much to invest based on your risk tolerance, knowing LMT’s relatively stable historical performance and modest volatility (beta 0.39). |
| Choose a strategy (short or long term) | Consider a long-term approach to benefit from Lockheed Martin’s strong backlog, consistent dividends, and growing global defense demand. |
| Monitor news and financial results | Watch for updates on quarterly earnings, major contract wins or losses, and policy changes that could affect Lockheed Martin’s revenue outlook. |
| Use risk management tools | Set stop-loss orders to protect your capital from sudden market moves and use portfolio diversification to minimize sector-specific risk. |
| Sell at the right time | Evaluate selling near technical resistance levels or when Lockheed Martin’s valuation approaches your target, especially ahead of potentially market-moving news. |
The latest news about Lockheed Martin
Lockheed Martin reported robust Q1 2025 results with 4% sales growth and improved segment profitability. The company announced its first quarter 2025 earnings on April 22, highlighting $18.0 billion in sales, up 4% year-over-year, and net earnings of $1.7 billion or $7.28 per share. Segment performance was especially strong in Missiles and Fire Control, which saw a 13% increase in sales and a 50% rise in operating profit, largely driven by higher demand for tactical and strike missile programs. Aeronautics, the company’s single largest segment, received a significant boost from the ongoing success of the F-35 program. Lockheed’s backlog reached a new peak of $173 billion, providing revenue visibility for more than two years and underpinning the company’s operational momentum.
Shareholder returns remain a key priority, with significant dividends and share repurchases in Q1 2025. During the first quarter, Lockheed Martin returned $1.5 billion to shareholders, distributing $796 million in cash dividends and executing $750 million in share repurchases. This underscores Lockheed’s commitment to rewarding investors, anchored by a currently attractive annual dividend yield of 2.76%. These actions are underpinned by the company’s strong cash generation, which saw $1.4 billion in cash from operations and $955 million in free cash flow. The steady capital return program combines with a robust balance sheet to strengthen the investment case for income-oriented and long-term shareholders.
Technical analysis signals short-term bullish momentum, supported by recent upward trends and buy indicators. Key moving averages (5-day to 50-day) have issued buy signals as Lockheed Martin’s stock price has gained 2.34% over the past week and 6.48% over the last month. The Relative Strength Index at 59.95 suggests neutral territory, indicating stock is not yet overbought. While long-term caution is warranted—given the 200-day moving average is currently a sell signal—the cumulative technical outlook points to favorable short-term dynamics, with resistance levels around $480 acting as near-term price targets. This trajectory is reinforcing analyst consensus, which points to a potential 10% upside from current prices.
Recent major contract awards and R&D investments enhance growth prospects across key defense programs. Lockheed Martin has secured new contracts in precision strike missiles, THAAD, JASSM/LRASM, and a Trident II D5 life extension, collectively representing up to $10 billion in future work. These contracts anchor growth in high-priority U.S. defense categories and provide revenue stability. Additionally, investment in research and development exceeded $850 million in Q1, supporting innovation in both existing and emerging domains. The ongoing surge in global and U.S. defense budgets amid geopolitical tensions also reinforces the positive demand environment for Lockheed’s advanced aerospace and defense solutions.
Lockheed Martin reaffirmed its full-year 2025 outlook and maintained a Buy-rated analyst consensus with a strong U.S. market focus. The company reiterated its 2025 sales guidance range of $73.75–$74.75 billion and a forecasted EPS of $27.00–$27.30. This steady outlook, combined with a dominant domestic market presence, diversified U.S.-led contract base, and an experienced management team—including the recent appointment of Evan Scott as CFO—has strengthened confidence across the financial community. The average analyst price target remains notably higher than the current share price, indicating robust expected performance and continued relevance for U.S. investors seeking exposure to the defense sector’s leading blue chip.
FAQ
What is the latest dividend for Lockheed Martin stock?
Lockheed Martin stock currently pays an annual dividend of $13.20 per share. The most recent ex-dividend date was March 3, 2025. With a dividend yield of approximately 2.76%, Lockheed Martin is recognized for consistently rewarding shareholders over the years, aligning with its disciplined capital return strategy. The company also regularly complements dividends with share repurchases, offering a stable income stream for investors.
What is the forecast for Lockheed Martin stock in 2025, 2026, and 2027?
Based on the latest price of $477.72, the projection for Lockheed Martin stock is $621.04 by the end of 2025, $716.58 by the end of 2026, and $955.44 by the end of 2027. These forecasts reflect the company’s robust fundamentals, including a $173 billion backlog and continued global growth in defense spending. Lockheed Martin’s strong market position and ongoing investments in R&D add to its long-term growth potential.
Should I sell my Lockheed Martin shares?
Given Lockheed Martin’s secure backlog, solid quarterly results, and its strategic position in the aerospace and defense industry, holding onto your shares may be a prudent choice for long-term investors. The company shows resilience through its diversified segments and consistent dividend payouts, supported by ongoing contract wins and a healthy financial outlook. Historically, Lockheed Martin has delivered stable returns, making it appealing for those seeking both growth and income.
How are dividends from Lockheed Martin stock taxed for U.S. investors?
For U.S. residents, Lockheed Martin dividends are generally considered qualified dividends and taxed at favorable long-term capital gains rates depending on your income bracket. Investors holding LMT in tax-advantaged accounts like IRAs or 401(k)s can defer or avoid immediate tax, while those with shares in taxable accounts will receive a Form 1099-DIV each year. Always consult the latest IRS guidelines for specific thresholds and reporting obligations.
What is the latest dividend for Lockheed Martin stock?
Lockheed Martin stock currently pays an annual dividend of $13.20 per share. The most recent ex-dividend date was March 3, 2025. With a dividend yield of approximately 2.76%, Lockheed Martin is recognized for consistently rewarding shareholders over the years, aligning with its disciplined capital return strategy. The company also regularly complements dividends with share repurchases, offering a stable income stream for investors.
What is the forecast for Lockheed Martin stock in 2025, 2026, and 2027?
Based on the latest price of $477.72, the projection for Lockheed Martin stock is $621.04 by the end of 2025, $716.58 by the end of 2026, and $955.44 by the end of 2027. These forecasts reflect the company’s robust fundamentals, including a $173 billion backlog and continued global growth in defense spending. Lockheed Martin’s strong market position and ongoing investments in R&D add to its long-term growth potential.
Should I sell my Lockheed Martin shares?
Given Lockheed Martin’s secure backlog, solid quarterly results, and its strategic position in the aerospace and defense industry, holding onto your shares may be a prudent choice for long-term investors. The company shows resilience through its diversified segments and consistent dividend payouts, supported by ongoing contract wins and a healthy financial outlook. Historically, Lockheed Martin has delivered stable returns, making it appealing for those seeking both growth and income.
How are dividends from Lockheed Martin stock taxed for U.S. investors?
For U.S. residents, Lockheed Martin dividends are generally considered qualified dividends and taxed at favorable long-term capital gains rates depending on your income bracket. Investors holding LMT in tax-advantaged accounts like IRAs or 401(k)s can defer or avoid immediate tax, while those with shares in taxable accounts will receive a Form 1099-DIV each year. Always consult the latest IRS guidelines for specific thresholds and reporting obligations.
