LMT Stock Analysis — Lockheed Martin
Sector: Aerospace & Defense
AI Verdict
LMT trades at 16.3x next year's earnings with nearly 60% EPS growth expected, so you're getting a bargain if its entrenched government contracts keep delivering.
Competitive Moat
Lockheed Martin dominates in advanced military aircraft, missile systems, and defense electronics, with long-term government contracts that create high switching costs and recurring revenue. Its deep integration into U.S. and allied defense procurement cycles makes its business exceptionally resilient to new entrants.
Summary
Lockheed Martin's forward P/E of 16.3x with nearly 60% expected EPS growth makes it a standout among defense stocks.
Where It Stands
With a 1-year return of 16.32%, neutral RSI at 49.2, and a forward P/E of 16.3x versus the industrial sector median of 20x, LMT is trading at a discount to peers despite strong expected growth.
Key Metrics
- RSI: 49.2 — Neutral
- Trailing P/E: 26.1x
- Forward P/E: 16.3x
- PEG Ratio: 0.43
- Earnings Growth: +0.6%
- Revenue Growth: +0.0%
- Market Cap: $124.0B
- Dividend Yield: 0.03%
- 1-Year Return: 16.32%
- 52-Week High: $692.00
- 52-Week Low: $410.11
Analyst Consensus
11 Buy · 16 Hold · 1 Sell (28 analysts) · Target $575.00
Bull Case
Analysts expect 59.9% EPS growth next year while you pay just 16.3x forward earnings, making this cheap for the growth you're getting.
Bear Case
If the forward P/E reverts to the trailing 26.1x, you'd be paying up 60% more for the same earnings, so the growth needs to materialize to justify the current price.
Catalyst to Watch
Watch for major U.S. or allied defense contract wins or losses, as these directly impact earnings visibility and sentiment.