LMT Should I Buy
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Lockheed Martin Corp (LMT) is not a strong buy at the moment for a beginner investor with a long-term focus. While the company has a robust backlog and stable revenue projections, technical indicators and trading sentiment suggest a neutral to slightly bearish short-term outlook. The lack of strong proprietary trading signals and mixed analyst ratings further support a hold recommendation.
The MACD is negatively expanding (-1.159), indicating bearish momentum. RSI is neutral at 34.448, and moving averages are converging, showing no clear trend. The stock is trading near its S1 support level of 605.975, with resistance at 619.921. This suggests limited upside potential in the short term.
Lockheed Martin's backlog reached $194 billion, ensuring long-term revenue stability.
Revenue is projected to grow to $77.5-$80 billion in 2026, reflecting strong market opportunities.
Recent $105 million U.S. Space Force contract adds to its growth potential.
Hedge funds are significantly selling, with a 143.99% increase in selling activity last quarter.
Analysts highlight risks in fixed-price programs and weaker free cash flow compared to peers.
Technical indicators show bearish momentum, and the stock has a 60% chance of declining in the next day and month.
In Q4 2025, Lockheed Martin showed strong financial growth: Revenue increased 9.12% YoY to $20.32 billion, Net Income surged 155.03% YoY to $1.344 billion, and EPS rose 161.26% YoY to 5.8. Gross Margin also improved significantly by 208.09% YoY to 11.43.
Analyst ratings are mixed. Jefferies and Citi raised price targets but maintained Hold/Neutral ratings. Susquehanna remains positive with a $740 price target, citing strong defense positioning. However, Wells Fargo and Goldman Sachs highlight risks in margins, free cash flow, and fixed-price programs, maintaining Equal Weight or Sell ratings.
