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Lockheed Martin (LMT) has experienced a mix of challenges and opportunities in recent years. While some analysts note the company's recovery potential amidst the cyclical nature of the defense industry, others express concerns about budget risks and competition from tech-driven firms like Palantir. The consolidation of the defense sector has led to a few major players, raising questions about innovation versus government contract strategies. Despite recent criticisms, particularly around the F-35 program, many believe that global tensions will sustain demand for defense products. However, the stock's high valuation and future earnings growth outlook remain points of discussion among experts.
There used to be 51 defence contractors, but after merging there are now only five major companies. Rather than innovative, these companies are gaming government contracts. Trump appointed Elon Musk to the new Efficency Dept. and Musk openly criticized Lockheed Martin's F-35's design and should be replaced by drones. However the LMT CEO responded that enemies use fancy fighter jets of their own, and Israel recently effectively used F-35s against Iran. Musk's criticism have put the defence industry under a microscope, an industry that has always been sacrosanct. Nobody wants to be accused of being weak on defence. LMT is -14.77% since Trump was elected. Barclays just stated that defence remains difficult with more budget risk than thought, given Musk. For pure defense stocks, wait and see. This sector is untouchable.
He bought it because he wanted defence exposure. Unfortunately, the world will demand defense (Middle East, Ukraine, BRIC). LMT's order book for fighter jets is strong. He bought a small position, because the valuation is high--he bit the bullet. He will add on weakness. Their last report showed signs of life in the margins, now that supply chain problems are gone.
Q4 EPS and revenue beat estimates but revenue declined by 0.6% year-over-year which was cause for concern and provides reasoning to LMT's pullback. There is definitely increased demand for defense contractors which should benefit LMT in the future, however the decline in sales offset that sentiment. Forecasts suggest modest revenue and EPS growth next year. We think despite the drop in revenue in Q4, LMT should continue to perform steadily, and looks to be good value with forward price-to-earnings ratio now coming down to 16.4x.
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Lockheed Martin is a American stock, trading under the symbol LMT-N on the New York Stock Exchange (LMT). It is usually referred to as NYSE:LMT or LMT-N
In the last year, 8 stock analysts published opinions about LMT-N. 5 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Lockheed Martin.
Lockheed Martin was recommended as a Top Pick by on . Read the latest stock experts ratings for Lockheed Martin.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
8 stock analysts on Stockchase covered Lockheed Martin In the last year. It is a trending stock that is worth watching.
On 2025-04-01, Lockheed Martin (LMT-N) stock closed at a price of $448.64.
LMT has definitely done better over the last couple of years. BA is a bit of a recovery play here. In general, where we are in the cycle, he thinks we're in phase 2 but on the cusp of phase 3. Phase 2 is typically where materials, industrials, and technology continue to do well.
These names should do OK, but we are approaching the end of the cycle. Ultimately, at some point, we'll see rotation out of these industrial plays.