Should I buy Lockheed Martin stock in 2025?

What is Lockheed Martin?

How much is the Lockheed Martin stock?

The price of Lockheed Martin stock is rising this week. Currently trading at $473.69, the stock has moved up by $3.71 (+0.79%) in the last 24 hours, though it shows a slight weekly drop of -0.69%. Lockheed Martin's market capitalization stands at $110.11 billion, with an average 3-month trading volume of 1.59 million shares. The P/E ratio is 20.24–20.46, offering a dividend yield between 2.79% and 2.81%, while the stock’s beta is a low 0.29–0.33. This stable profile, with modest volatility, may appeal to South African investors seeking defensive and steady growth opportunities.

Our full analysis of the Lockheed Martin stock

After a rigorous analysis of Lockheed Martin Corporation’s latest financial performance, historic three-year stock trajectory, and comprehensive review of sector benchmarks, our proprietary models have synthesized technical, fundamental, and competitive landscape data to present a compelling perspective. Anchored by a robust strategic pivot through recent earnings and distinctive positioning amongst technology-driven defence conglomerates, the stock’s near- and medium-term prospects stand out in the current environment. So, why might Lockheed Martin stock once again become a strategic entry point into the global aerospace and defence sector in 2025?

Recent Performance and Market Context

Lockheed Martin (NYSE: LMT) currently trades at $473.69, reflecting a marginal -0.69% move over the last week but securing a +4.63% gain over the past twelve months—outperforming many sector peers in the wider aerospace and defence arena during a period marked by volatility and uncertainty. While the six-month frame (-10.52%) traces sectoral pullbacks and cyclical rotation, the company’s latest results confirm that headwinds have been fundamentally addressed.

• Resilient annual revenue growth: Lockheed posted $71 billion in FY2024, up 5% year-on-year.
• Operational strength despite exceptional items: Isolated $2bn classified program losses were provisioned, with underlying performance robust and ongoing derisking strategies implemented.
• Shareholder returns: Nearly $6.8bn returned via dividends and buybacks in 2024, underpinning confidence.
• Sector tailwinds: Heightened global geopolitical tensions continue to sustain a favorable macroeconomic backdrop for the defence sector, with increasing demand for next-generation systems.

The market context remains positive for Lockheed Martin, bolstered by increased defence spending propositions in the United States (including a proposed $1 trillion defence budget for 2026), rapid technology upgrades, and strengthening international alliances—particularly across Europe. This backdrop provides a supportive bedrock for continued growth and investor optimism.

Technical Analysis

A closer look at Lockheed Martin’s technical profile reveals clear signals of a potentially bullish phase.

• Moving averages indicate stability: The 20-, 50-, 100-, and 200-day moving averages ($469.47–$503.43) are converging near current levels, indicating a consolidation phase typically seen ahead of upward momentum shifts.
• Momentum oscillators favour a constructive view:
• RSI (14-day): At 51.13–57.44, neutral yet approaching favorable territory—with room for upside before overbought conditions.
• MACD (12,26,9): Positive at 0.01–1.81, signaling emergent buying pressure.
• Williams %R: Between -30.53 and -40.97, also pointing to a nascent buy signal.

Critically, the key support is firmly established at $465.32, with the next significant resistance at $474.56. Classic pivot points (support at $463.19, resistance at $487.78) frame a tight risk window, suggesting an advantageous risk/reward set-up for technical buyers. Importantly, the subdued beta (0.29–0.33) signals lower volatility compared to broader equities—appealing for risk-aware capital allocations.

With the stock consolidating near these long-term supports and technical indicators turning positive, a foundation is set for potential entry ahead of meaningful catalysts.

Fundamental Analysis

From a fundamental standpoint, Lockheed Martin’s credentials remain impressive:

• Revenue and earnings expansion: FY2024 saw sales rise 5% to $71bn, with net profit at $5.3bn ($22.31 per share), and a strong free cash flow of $5.3bn.
• Valuation attractiveness: The price/earnings ratio stands at 20.24–20.46, with a forward consensus EPS growth of 9% per annum. The PEG ratio, when considering forecast EPS growth, appears justified—if not compelling—for a blue-chip within an otherwise cyclical sector.
• Dividend profile: A robust yield (2.79–2.81%), reinforced by a $3.30 quarterly payout and a longstanding tradition of shareholder distributions.
• Backlog and order book: A record $176bn backlog provides multi-year revenue visibility and downside protection.
• Technological leadership: Dominance in the F-35 program ($2.1 trillion lifecycle value), plus leadership in emerging defence technologies, marks Lockheed as a cornerstone innovator.
• Global diversification: Expanding European collaboration and geographic dispersion reduce reliance on any single client or political cycle.
• Brand and government relationships: Decades-long, trusted supplier status with the US government and international allies fosters a high degree of contract stability.

Even accounting for the $2bn nonrecurring program write-down in 2024, the company’s operating fundamentals remain unshaken—bolstered by effective cost controls, strategic pivoting, and a highly competitive market position. By all major valuation and balance sheet measures, interest in Lockheed Martin appears justified on a medium- to long-term view.

Volume and Liquidity

Lockheed Martin’s stock enjoys high liquidity, with a three-month average daily trading volume of 1.59 million shares and a generous public float (circa 234.3 million shares outstanding). Consistent volume patterns, particularly around earnings reports and defence sector newsflow, point to institutional support and active market monitoring.

This liquidity instills confidence in both individual and professional investors, ensuring dynamic and efficient price discovery. Elevated trading volumes near recent technical lows suggest that large, sophisticated market participants are accumulating positions—improving the prospects for an emerging uptrend.

Catalysts and Positive Outlook

Several major near- and medium-term drivers are on the horizon for Lockheed Martin:

• US defence budget expansion: The 2026 Trump administration’s proposed $1 trillion defence budget is set to benefit leading contractors, especially those with advanced technology portfolios.
• F-35 “Fifth-Gen Plus” roll-out: The next-generation F-35, integrating sixth-generation capabilities and optional-pilot technology, positions Lockheed at the innovation frontier.
• Contract flow: An imminent contract award for 170–190 F-35 aircraft (expected June 2025) is likely to be a material catalyst.
• International scale-up: Lockheed’s strategic drive to deepen European alliances and capitalise on elevated demand amid ongoing geopolitical tension firmly entrenches its relevance.
• “Golden Dome” missile defence programme: Advocacy for this new system signals further upside optionality should the project be funded.
• ESG and innovation: The company’s increasing focus on advanced, lower-carbon technology platforms demonstrates forward-thinking, essential for attracting a broader, sustainability-oriented investor base.

Looking forward, management guidance targets FY2025 revenues of $73.75–$74.75bn, with EPS of $27.00–$27.30 and free cash flow advancing towards $6.8bn. Consensus analyst targets converge at $521–$524—roughly 10% above the current price—while the upper target band ($670) signals even larger potential for patient investors.

Investment Strategies

• Short-Term View:
• The stock is trading near strong technical support, with a breakout above $474.56 opening the path to the $487.78 resistance.
• Forthcoming contract announcements and results may act as short-term upward catalysts.
• Medium-Term Perspective:
• Sustained buying zones have emerged between $465–$470, offering attractive risk/reward for a 6–12 month holding period.
• Anticipated EPS growth, enhanced buybacks, and forward guidance create an environment supportive of a measured, position-building approach.
• Long-Term Outlook:
• For investors focused on durable compounding, Lockheed Martin’s multi-decade F-35 contract, generational innovation projects, and consistent dividend growth create a case for portfolio anchor status.
• The record backlog and continued international expansion buffer against cyclical uncertainty, supporting a thesis of robust compounding over several years.

Positioning ahead of potential game-changing contracts or policy announcements seems well supported by both technical and fundamental factors, enabling investors to consider staggered entry or incremental increases as the price respects established support levels and momentum strengthens.

Is it the Right Time to Buy Lockheed Martin?

• Sound operational resilience and impressive cash flows despite temporary 2024 program write-downs now fully absorbed.
• Revenue visibility, contract security, and sector leadership through an historic, diversified backlog and clear technology roadmap.
• Attractive entry point: Current valuations—particularly after consolidation and with technical signals improving—are compelling relative to both historical averages and sector peers.
• Compelling near-term and strategic catalysts: Imminent contract wins, next-generation product launches, and potential defence budget expansion could drive sharp upward re-rating.
• Convincing analyst consensus: With a median 10–15% upside, and a fundamentally supportive macro environment, renewed bullish interest is justified.

In summary, Lockheed Martin exhibits a combination of solid fundamentals, increasing forward momentum, and imminent catalysts that collectively suggest the stock may be entering a new bullish phase. For investors seeking a resilient blue-chip anchored in technology-driven defence with clear upside levers, Lockheed Martin seems to represent an excellent opportunity for diversified portfolios in the months ahead.

The confluence of technical support, robust balance sheet, and major sector tailwinds positions Lockheed Martin as a stock truly worth watching closely as the next wave of aerospace and defence innovation unfolds.

How to buy Lockheed Martin stock in South Africa?

Buying shares of Lockheed Martin (NYSE: LMT) online has never been more secure or accessible for South African investors. Thanks to regulated brokers, you can invest in this leading aerospace and defence company in just a few clicks. Investors typically choose between two main approaches: buying “spot” shares for long-term ownership, or speculating on price movements with Contracts for Difference (CFDs). Each method offers distinct advantages, which we explain below in detail. If you’re ready to invest, make sure to check out the broker comparison further down on this page.

Spot Buying

When you purchase Lockheed Martin shares “for cash”, you become an actual shareholder, eligible for dividends and entitled to voting rights. Cash buying is ideal for those seeking long-term growth and income, and it is straightforward to do through a regulated broker. The main fees to expect are a brokerage commission, usually a fixed amount per order—most South African brokers charge approximately R100–R200 per trade (around $5–$10 USD, depending on the exchange rate).

Example

Lockheed Martin’s share price is $473.69. With a $1,000 investment, you can buy about 2 shares (2 x $473.69 = $947.38), after accounting for an estimated $5 brokerage fee (about R92 at R18.5/USD).

Gain scenario: If the share price rises by 10%, your holdings are now worth $1,100.
Result: +$100 gross gain, or +10% on your initial investment.

Trading via CFD

With CFDs, you do not own actual shares in Lockheed Martin, but instead speculate on price movements. CFDs are popular with more active traders, thanks to the use of leverage and flexibility to go long or short. The main fees to consider are the spread (the difference between buy and sell price) and overnight financing costs, especially if you hold positions for multiple days.

Example

You open a $1,000 CFD position on Lockheed Martin shares, using 5x leverage. This means your market exposure is $5,000.

Gain scenario: If the share price rises by 8%, your position gains 8% x 5 = 40%.
Result: +$400 gain on a $1,000 stake (excluding spread and overnight fees).

Final Advice

Before choosing a broker or trading method, it’s essential to compare fees, trading platforms, and support for South African investors. Your decision should depend on your investment goals: buy-and-hold investors might prefer spot buying for simplicity and dividends, while short-term traders may consider CFDs for leveraged exposure. Take the time to review the detailed broker comparison further down this page to select the best provider for your needs. Happy investing!

Our 7 tips for buying Lockheed Martin stock

The latest news about Lockheed Martin

Lockheed Martin’s positive short-term technicals and analyst consensus support a constructive outlook. Recent market action has seen the stock recover modestly, closing at $473.69 with a 0.79% intraday gain and maintaining proximity to key 20-, 50- and 100-day moving averages, all clustered near current levels. Major technical indicators, such as MACD and Williams %R, have shifted to buy signals and suggest potential for further upside momentum. Notably, the consensus 12-month analyst price target stands above $520, translating to a 10-15% upside from current levels, while the current dividend yield of nearly 2.8% enhances its appeal for stable, income-focused investors in South Africa seeking USD exposure.

Lockheed Martin is accelerating next-generation F-35 advancements, strengthening its innovation leadership and export potential. A key development this week is the ongoing upgrade of the F-35 program, with “Fifth-Gen Plus” technologies set to debut and commitments to pilot-optional features and enhanced stealth. This innovation drive not only secures Lockheed Martin’s competitive moat globally but also increases the attractiveness of the F-35 for international customers, including countries in Africa and the MENA regions, which rely on technologically advanced air defense solutions. For South Africa, whose defense sector monitors regional procurement trends, this positions Lockheed Martin as a continued reference for state-of-the-art capability.

The company’s 2024 financials show resilience and strong capital return policies, positioning it well amidst global uncertainty. Despite absorbing $2 billion in exceptional classified program losses last year, Lockheed Martin delivered a 5% annual revenue increase and returned $6.8 billion to shareholders through dividends and buybacks. Its operational cash flow of $7 billion and projected free cash flow of up to $6.8 billion in 2025 suggest reliable ongoing capital returns. For ZA institutional allocators evaluating USD-based equities, this level of cash generation and payout consistency stands out for risk-adjusted portfolio construction.

International expansion and robust order backlog reinforce long-term visibility, relevant for South African institutional investors. Lockheed Martin has finished 2024 with a record backlog of $176 billion and continues to expand partnerships worldwide, particularly in Europe. These long-term contracts and geographic diversification reduce dependency on any single defense budget cycle. For pension funds and asset managers in South Africa, the stability provided by such a backlog is especially valuable for liabilities-matching and multi-year investment planning.

Emerging global defense trends and favorable U.S. policy path create a supportive macro environment. Geopolitically, the proposed $1 trillion U.S. defense budget and programs like the “Golden Dome” antimissile initiative point to sustained demand for advanced systems such as those Lockheed Martin offers. With global defense spending on an uptrend, and given the stock’s low beta and positive market sentiment, South African investors and analysts are likely to view LMT as a defensive growth anchor within a diversified global equity sleeve, benefiting from macro tailwinds, dollar strength, and sector-specific innovation.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.