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Lockheed Martin Corporation (LMT) Stock Analysis

By Nova Skye | AltStation.io | Updated February 07, 2026

Price

$620.34

Change

+1.83%

Market Cap

$143.55B

Avg Volume

1.7M

Company Overview

Lockheed Martin Corporation is a leading aerospace and defense company headquartered in Bethesda, Maryland. They design and manufacture a broad array of advanced technologies, including combat aircraft, missile defense systems, satellites, and various support services. Their products are primarily sold to the U.S. government but also cater to international clients through foreign military sales. They operate through four key segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space, providing both military and commercial solutions.

Lockheed Martin is a market leader in the aerospace and defense industry, holding a significant share against key competitors like Boeing, Northrop Grumman, and Raytheon Technologies. Their competitive edge stems from extensive research and development, a robust order backlog, and a long-standing relationship with government contracts. However, they face challenges, including rising costs and supply chain disruptions that could impact production timelines and margins. Furthermore, increasing geopolitical tensions and competition in the defense sector could affect market dynamics.

Currently, Lockheed Martin is experiencing steady growth, bolstered by a strong demand for military hardware and technology, especially amid global security concerns. The company generated over $67 billion in revenue in 2022, marking an increase from the previous year. Recently, they secured a $1.7 billion contract for the next generation of missile defense systems, underscoring their commitment to innovation and strategic defense initiatives. This focus on expanding their portfolio while addressing market threats positions them favorably for sustained growth.

Key Financials

Market Cap

$143.55B

Revenue

$75.05B

EBITDA

$8.29B

Gross Margin

10.2%

Profit Margin

6.7%

Revenue Growth

9.1%

Total Cash

$4.12B

Total Debt

$22.77B

Free Cash Flow

$5.28B

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

28.85

Forward P/E

19.45

Beta

0.23

52-Week High

$646.59

52-Week Low

$410.11

EPS

$21.50

50-Day Avg

$519.21

200-Day Avg

$480.33

Price/Book

21.14

Technical Analysis

Over the past 52 weeks, Lockheed Martin Corporation (LMT) has exhibited a strong upward trend, reflected in a 43.2% increase and consistently higher highs and higher lows since bottoming around $400 in February. Key support has formed near the $450 level, while resistance is seen around $623.58, evidenced by multiple tests of this price without significant breakout. Throughout the year, notable price patterns include the formation of higher peaks, particularly from October to February, signaling bullish momentum. In recent weeks, the stock price shows accelerated momentum, moving consistently toward the upper end of the 52-week range, currently placing the stock just slightly below its 52-week high at $623.58. As the current price of $620.34 is near the upper boundary, this implies a strong bullish sentiment, but also suggests potential volatility as it approaches resistance.

Recent News and Developments

Market Update

Here’s a summary of the latest news and developments for Lockheed Martin Corporation (LMT) stock in the past week (February 1-7, 2026):

Market Update

### Lockheed Martin Sees Multiple Analyst Price Target Increases

In the past week, several analysts adjusted their price targets for Lockheed Martin

On February 2, 2026, UBS maintained a “Neutral” rating on LMT but raised its price target to $663 from $580, marking a 14.31% increase. Additionally, Citigroup issued a high price target of $673 on February 5, 2026, and Jefferies also provided an analyst rating on February 2, 2026. The consensus average brokerage recommendation for Lockheed Martin is currently 2.5, indicating an “Outperform” status based on ratings from 24 brokerage firms.

Market Sentiment and Analyst Recommendations

Bull Case

Lockheed Martin is firing on all cylinders right now. The company just landed a $328.5M FMS contract for IRST21 sensors and delivered the first Sentinel A4 radar, both concrete proof that the defense pipeline is real and accelerating. Revenue growth at 9.1% combined with a 43.2% stock gain over 52 weeks shows the market is pricing in legitimate expansion. The analyst consensus flipped to Outperform with 24 firms covering the stock, and multiple price target increases in February alone (UBS raised to $663, Citigroup to $673) suggest institutional money sees $650+ as reasonable. At 28.85 P/E, you’re paying a premium but justified by defense spending tailwinds and a $3.45 quarterly dividend that yields around 2.2% on top of capital appreciation. The stock is near all-time highs because the business is actually performing.

Bear Case

The valuation is stretched at 28.85 P/E for a defense contractor, especially with the stock already up 43% in a year and sitting near the $646.59 52-week high. The debt load of $22.77B against only $4.12B in cash is a 5.5x leverage ratio that limits financial flexibility if government spending priorities shift or budget cycles slow. Analyst price targets range wildly from $517 to $740, a 43% spread that signals genuine disagreement on fair value. The current price of $620.34 is already testing resistance at $623.58 with no significant breakout, suggesting the easy money has been made and momentum could stall. Political uncertainty around defense budgets and the risk of contract delays or cancellations are real headwinds that don’t show up in current-quarter numbers. You’re buying into a stock that’s already priced for perfection.

What to Watch

Monitor Q1 2026 earnings (expected April) for revenue guidance and whether management raises full-year targets based on these new contracts. Watch for the Sentinel A4 program to move from LRIP 2 into full production, which would unlock significantly larger revenue streams. Track defense budget appropriations in Congress over the next 60 days, as any reduction in spending authority would immediately pressure the stock. The $328.5M FMS deal needs to convert into follow-on orders and international wins to justify current momentum. Keep an eye on whether LMT can break above $646.59 decisively or if it rolls over at resistance, which would signal whether the bull run continues or mean reversion begins. Finally, monitor the debt-to-cash ratio quarterly; if leverage stays above 5x while growth slows, that becomes a real concern for dividend sustainability.

Analyst Consensus

HOLD

Based on 19 analyst opinions

Low Target

$517.00

Mean Target

$652.53

High Target

$740.00

Earnings and Financial Data

Sector

Industrials

Industry

Aerospace & Defense

Employees

123,000

Earnings & Dividends

Next Earnings

Apr 21, 2026

EPS (Trailing)

$21.50

Dividend Yield

227.0%

Payout Ratio

62.1%

Frequently Asked Questions

Is LMT a good stock to buy?

Analysts currently rate Lockheed Martin (LMT) as a HOLD, with a target price of $652.53. Given its strong market cap of $143.55 billion and decent forward P/E of 19.45, it may appeal to certain investors, but caution is advised.

What is LMT’s price target?

The consensus price target for LMT is $652.53, suggesting a potential upside from the current price of $620.34. Investors should weigh this potential against its performance and market conditions.

Does LMT pay a dividend?

Yes, Lockheed Martin has a dividend yield of 227.0%. This makes it a solid option for income-focused investors, but the yield does warrant scrutiny for sustainability.

What has been LMT’s stock performance over the last year?

LMT’s stock has ranged from $410.11 to $646.59 over the past 52 weeks. This indicates strong growth potential, but the high P/E of 28.85 suggests the stock might be overvalued at its current price.

What sector does LMT belong to?

Lockheed Martin operates in the Industrials sector, specifically in the Aerospace & Defense industry. This sector can be influenced by government spending and defense budgets, so it’s crucial to monitor those factors.

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Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis and opinions expressed are those of AltStation.io and should not be relied upon as the sole basis for investment decisions. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. Updated February 07, 2026.