LMT Should I Buy
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Lockheed Martin (LMT) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive growth outlook, and robust demand in the defense sector make it a solid choice despite some near-term risks.
The stock is in a bullish trend with moving averages showing strength (SMA_5 > SMA_20 > SMA_200). However, the MACD histogram is negative (-1.568), indicating some short-term weakness. RSI is neutral at 66.677, and the stock is trading near resistance levels (R1: 642.503).
Strong Q4 2025 financial performance with revenue up 9.12% YoY, net income up 155.03% YoY, and EPS up 161.26% YoY.
Increased demand for defense products, including munitions and missile systems.
Record backlog and strong global demand.
Positive news such as the Pentagon's $13.4 billion budget for AI-driven platforms and increased military activity in the Middle East.
Hedge funds are selling the stock, with a 143.99% increase in selling activity last quarter.
Analysts are cautious, with many maintaining Neutral or Hold ratings despite raising price targets.
Concerns about execution risks, margin pressures, and free cash flow headwinds due to capex and pension dynamics.
Lockheed Martin reported excellent Q4 2025 results: Revenue increased to $20.32 billion (up 9.12% YoY), Net Income rose to $1.34 billion (up 155.03% YoY), EPS increased to 5.8 (up 161.26% YoY), and Gross Margin improved significantly to 11.43 (up 208.09% YoY).
Analysts have raised price targets significantly, with the highest target at $695 (Truist) and the lowest at $517 (Goldman Sachs). However, most analysts maintain Neutral or Hold ratings, citing valuation concerns and execution risks. The stock is up 30% YTD, suggesting that much of the positive outlook may already be priced in.
