LMT Stock Analysis — Lockheed Martin
Sector: Aerospace & Defense
AI Verdict
Lockheed trades at 17.3x next year's earnings for 44.3% expected EPS growth—cheap for the growth on offer if its government contract moat holds, but the RSI of 7.7 suggests technical risk of a false rebound.
Competitive Moat
Lockheed Martin is the primary contractor for the U.S. Department of Defense on major programs like the F-35 fighter jet, which creates multi-decade, government-backed revenue streams. Its scale, deep integration with military procurement, and classified technology create high switching costs and regulatory barriers for competitors.
Summary
The stock's RSI of 7.7 signals extreme oversold conditions, making it a technical outlier among large defense names.
Where It Stands
Lockheed Martin has returned 8.22% over the past year and 39% over five years, trades at 17.3x forward earnings versus the industrials median of 20x, and its RSI of 7.7 is far below the typical oversold threshold.
Key Metrics
- RSI: 7.7 — Oversold
- Trailing P/E: 25.0x
- Forward P/E: 17.3x
- PEG Ratio: 0.55
- Earnings Growth: +0.4%
- Revenue Growth: +0.0%
- Market Cap: $119.2B
- Dividend Yield: 0.03%
- 1-Year Return: 8.22%
- 5-Year Return: 39%
- 52-Week High: $692.00
- 52-Week Low: $410.11
Analyst Consensus
11 Buy · 17 Hold · 1 Sell (29 analysts)
Bull Case
With analysts forecasting 44.3% EPS growth and a forward P/E of 17.3x, you're paying less than the sector median for a sharp earnings jump backed by a 0.55 PEG ratio.
Bear Case
If the P/E reverts from 17.3x to the sector median of 20x, upside is capped, and the ultra-low RSI could mean a dead-cat bounce rather than a sustained rally.
Catalyst to Watch
Watch for new contract wins or U.S. defense budget updates—either could validate or challenge the 44.3% EPS growth expectation.