Overview of Lockheed Martin Corporation
Lockheed Martin Corporation (LMT), based in Bethesda, Maryland, is a leader in security and aerospace services. The company is engaged in the research, design, development, manufacturing, integration, and maintenance of various technological systems and products. With a market capitalization of $128.5 billion, Lockheed Martin operates in sectors such as aerospace, telecommunications, electronics, and systems integration.
Stock Performance Compared to Market
Over the last year, Lockheed Martin’s stock has underperformed compared to the broader market. LMT shares increased by 20.4%, while the S&P 500 Index ($SPX) jumped nearly 31%. In 2024, LMT’s stock is up 19.6%, lagging behind the S&P 500’s 25.2% rise year-to-date.
When comparing further, LMT has also trailed the iShares U.S. Aerospace & Defense ETF (ITA), which has gained approximately 31% over the past year and 22.1% in this current year.
Future Revenue Growth Expectations
Despite recent stock challenges, analysts predict that Lockheed Martin will see revenue growth due to a steady stream of orders for its defense products, strong international presence, and a healthy order backlog.
Recent Market Reactions
On Nov. 19, shares of Lockheed Martin rose slightly, influenced by rising tensions between Ukraine and Russia, which often boosts the defense sector. However, on Nov. 14, the stock fell by over 3% after concerns arose from President-elect Trump’s suggestion of leading a government spending cut commission, leading to fears about potential cuts in government contracts.
Current Earnings Outlook
Analysts forecast a decline in LMT’s earnings per share (EPS) by 3.3% to $26.89 for the fiscal year ending in December. Interestingly, the company has consistently exceeded analyst expectations in its earnings reports over the past four quarters.
Analyst Recommendations
Among the 21 analysts covering LMT, the consensus rating is a “Moderate Buy.” This includes 11 “Strong Buy” ratings, one “Moderate Buy,” eight “Holds,” and one “Strong Sell.” This is a notable improvement from three months ago when only 10 analysts rated it as a “Strong Buy.”
Price Target Insights
On Oct. 23, RBC Capital reduced Lockheed Martin’s price target from $675 to $665 while maintaining an “Outperform” rating, citing concerns over weaker Q3 sales, though the 2025 outlook may be conservative. The analyst noted positive growth in the Missiles and Fire Control segment and indicated that the F-35 program’s recovery is proceeding well, supporting a positive outlook for 2025.
Currently, the average price target for LMT is $607.33, reflecting a 12% premium from current market prices. The highest price target of $704 indicates a potential upside of 29.8%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. Please refer to the Barchart Disclosure Policy for further details.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
