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Bethesda, Maryland-based Lockheed Martin Corporation (LMT) specializes in manufacturing and designing fighter aircraft and missiles. It’s popularly known for its fighter aircraft, like the F-16 Falcon, F-22 Raptor, and F-35 Lightning. With a market cap of $136.3 billion, Lockheed Martin operates through Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Lockheed Martin fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the aerospace and defense industry. For years, it has consistently pushed boundaries and created groundbreaking innovations.
Lockheed Martin hit its all-time high of $569.09 on Aug. 30 before slightly pulling back. LMT stock gained 23.3% over the past three months, outpacing the S&P 500 Index’s ($SPX) 7.9% gains during the same time frame.
Over the longer term, LMT rallied 26.7% over the past 52 weeks and 25.3% in 2024, outperforming SPX’s 25.6% returns over the past 52 weeks and 18.4% gains on a YTD basis.
To confirm the bullish trend, LMT has traded above its 200-day moving average since mid-March and above its 50-day moving average since mid-July.
Shares of Lockheed Martin surged 5.6% after the release of its Q2 earnings on Jul. 23 and remained in positive territory for the next seven trading sessions. The company reported an impressive 8.6% year-over-year sales growth, reaching $18.1 billion, while its EPS of $7.11 beat the consensus estimates by 10.2%. The rise in geopolitical tensions over the past few years has skyrocketed defense spending by countries around the world, contributing to the growth in sales of defense companies like Lockheed Martin.
Moreover, in the first half of 2024, the company repurchased shares worth $1.9 billion, demonstrating its commitment to return value to shareholders.
Lockheed Martin’s competitor, Huntington Ingalls Industries, Inc. (HII), gained 29.1% over the past year, outpacing LMT. However, HII grew 8.9% in 2024, lagging behind LMT’s returns over the same time frame.
Among the 18 analysts covering the LMT stock, the consensus rating is a “Moderate Buy.” Although LMT is trading above its mean price target of $545.15, the Street-high target of $635 represents a potential upside of 11.8%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
