Lockheed Martin
LMT
$524.19
-1.12%
Lockheed Martin is the world's largest defense contractor, specializing in the design, manufacture, and support of advanced military aircraft, missiles, helicopters, satellites, and related systems for global defense and security customers. Its dominant position in high-end fighter aircraft, particularly the F-35 Joint Strike Fighter program, which accounts for a significant portion of its Aeronautics segment revenue, distinguishes it as a market leader in the aerospace and defense industry. The current investor narrative centers on record global defense spending, geopolitical tensions, and a robust backlog, which are expected to drive revenue growth and margin expansion, while the company also navigates supply chain challenges and program execution risks. Recent news highlights strong quarterly earnings with a 3.2x book-to-bill ratio and record backlogs, reinforcing the positive outlook for defense primes like Lockheed Martin.…
LMT
Lockheed Martin
$524.19
Related headlines
LMT 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Lockheed Martin's 12-month outlook, with a consensus price target around $637.84 and implied upside of +21.7% versus the current price.
Average Target
$637.84
0 analysts
Implied Upside
+21.7%
vs. current price
Analyst Count
—
covering this stock
Price Range
$503 - $756
Analyst target range
Lockheed Martin is covered by 19 analysts, with a consensus recommendation of 'hold' and a mean rating of 2.52 (where 1 is strong buy and 5 is sell). The average target price is $632.95, implying an upside of approximately 20.5% from the current price of $525.28. The distribution of ratings includes a mix of buy, hold, and sell, with recent actions showing a Citigroup upgrade from Neutral to Buy in July 2026, while other firms like TD Cowen and Jefferies maintain Hold ratings. The consensus leans slightly bullish, given the positive upside potential, but the 'hold' recommendation suggests analysts are cautious about near-term catalysts. The target price range spans from a low of $503.00 to a high of $756.00, indicating a wide dispersion of expectations. The high target assumes strong execution on the F-35 program and continued defense spending growth, while the low target reflects risks such as program delays or budget cuts. The wide range suggests significant uncertainty, but the recent upgrade from Citigroup and positive earnings momentum may lead to further upward revisions.
LMT Technical Analysis
Lockheed Martin's stock has experienced a volatile year, with a 1-year price change of +14.98%, but it is currently trading at $525.28, which is near the lower end of its 52-week range (approximately 33% of the range between the low of $437.25 and high of $692.00). This positioning suggests the stock has pulled back significantly from its highs, potentially offering a value opportunity, but also reflecting recent selling pressure. The 6-month price change of -21.81% indicates a clear downtrend over that period, while the 3-month change is slightly positive at +0.29%, hinting at a possible stabilization or consolidation phase after the sharp decline from the April peak.
Beta
0.10
0.10x market volatility
Max Drawdown
-27.4%
Largest decline past year
52-Week Range
$437-$692
Price range past year
Annual Return
+11.4%
Cumulative gain past year
| Period | LMT Return | S&P 500 |
|---|---|---|
| 1m | -13.6% | -1.1% |
| 3m | -3.0% | +3.0% |
| 6m | -18.9% | +15.4% |
| 1y | +11.4% | +16.2% |
| ytd | +5.5% | +12.1% |
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LMT Fundamental Analysis
Lockheed Martin's revenue trajectory has been relatively flat, with the most recent quarter (Q1 2026) reporting revenue of $18.02 billion, a modest 0.32% year-over-year growth. This follows a pattern of low single-digit growth over the past several quarters, with Q4 2025 revenue of $20.33 billion and Q3 2025 revenue of $18.61 billion, indicating a stable but not rapidly expanding top line. The company's growth is primarily driven by its Aeronautics segment, which generated $6.95 billion in revenue, followed by Rotary and Mission Systems at $3.99 billion, Missiles and Fire Control at $3.65 billion, and Space at $3.43 billion, reflecting a diversified portfolio but with heavy reliance on F-35 production. The flat revenue growth suggests the company is in a mature phase, with future growth dependent on program ramps and new contract wins, as evidenced by the strong book-to-bill ratio of 3.2x in Q2 2026.
Quarterly Revenue
$18.0B
2026-03
Revenue YoY Growth
+0.3%
YoY Comparison
Gross Margin
11.5%
Latest Quarter
Free Cash Flow
$5.7B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is LMT Overvalued?
Given Lockheed Martin's positive net income, the price-to-earnings (PE) ratio is the most appropriate primary valuation metric. The trailing PE is 22.43x, while the forward PE is 16.06x, indicating that the market expects significant earnings growth over the next year. The gap between trailing and forward PE suggests an anticipated increase in EPS, which is supported by analyst estimates of $40.60 for the current fiscal year. Compared to the industry average PE of 22.4x (based on available data), Lockheed Martin's trailing PE is roughly in line, but its forward PE is at a discount, implying the stock is undervalued relative to its growth prospects. Historically, the stock's PE has ranged from approximately 11.8x to 90.4x over the past five years, with the current trailing PE of 22.4x sitting near the lower end of that range, suggesting the stock is trading at a historically attractive valuation.
PE
22.4x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 12x~23x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
16.7x
Enterprise Value Multiple