Lockheed Martin: A Dual Opportunity in Tech and Defense
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 49 minutes ago
0mins
Source: Fool
- Market Performance Analysis: Lockheed Martin's stock has fallen 15.7% over the past 90 days, currently priced at $545.04, and is 27% below its 52-week high, reflecting market disappointment regarding its expected benefits from the Iran conflict; however, it boasts a $194 billion backlog, underscoring its strong position in defense.
- Defense Spending Outlook: The U.S. government plans to allocate $1.5 trillion for defense in fiscal 2027, with half earmarked for weapons modernization and procurement, providing Lockheed Martin with a stable revenue source and reinforcing its role as a key defense contractor.
- Dividend Yield Advantage: Lockheed Martin offers a dividend yield of 2.7%, more than double that of the S&P 500 and the largest industrial ETF, and has increased its dividend for 23 consecutive years, demonstrating a commitment to shareholder returns that appeals to long-term investors.
- Technology Investment Opportunities: While not a traditional tech company, Lockheed Martin benefits from $66 billion in tech spending and $13.4 billion in dedicated AI budget within the defense budget, indicating its potential in autonomous systems and enhancing its value as a long-term supplier to the U.S. government.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy LMT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on LMT
Wall Street analysts forecast LMT stock price to rise
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 521.820
Low
430.00
Averages
535.50
High
605.00
Current: 521.820
Low
430.00
Averages
535.50
High
605.00
About LMT
Lockheed Martin Corporation is an aerospace and defense technology company. The Company's segments include Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The Aeronautics segment is engaged in research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. The MFC segment provides air and missile defense systems; tactical missiles and precision strike weapon systems; logistics; fire control systems; engineering support and integration services. The RMS segment designs, manufactures, services and supports various military and commercial helicopters, sea and land-based missile defense systems. The Space segment is engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lockheed Martin: A Dual Opportunity in Tech and Defense
- Market Performance Analysis: Lockheed Martin's stock has fallen 15.7% over the past 90 days, currently priced at $545.04, and is 27% below its 52-week high, reflecting market disappointment regarding its expected benefits from the Iran conflict; however, it boasts a $194 billion backlog, underscoring its strong position in defense.
- Defense Spending Outlook: The U.S. government plans to allocate $1.5 trillion for defense in fiscal 2027, with half earmarked for weapons modernization and procurement, providing Lockheed Martin with a stable revenue source and reinforcing its role as a key defense contractor.
- Dividend Yield Advantage: Lockheed Martin offers a dividend yield of 2.7%, more than double that of the S&P 500 and the largest industrial ETF, and has increased its dividend for 23 consecutive years, demonstrating a commitment to shareholder returns that appeals to long-term investors.
- Technology Investment Opportunities: While not a traditional tech company, Lockheed Martin benefits from $66 billion in tech spending and $13.4 billion in dedicated AI budget within the defense budget, indicating its potential in autonomous systems and enhancing its value as a long-term supplier to the U.S. government.
See More
Lockheed Martin Stock Pullback May Be a Buying Opportunity
- Stock Price Analysis: Lockheed Martin's stock has fallen 15.7% over the past 90 days and is currently 27% below its 52-week high; however, the company boasts a $194 billion backlog, reinforcing its strong position as a defense contractor amid the U.S. government's pursuit of a $1.5 trillion defense budget for fiscal 2027.
- Dividend Growth Advantage: With a current dividend yield of 2.7%, more than double that of the S&P 500 and the largest industrial ETF, and a commitment to increasing dividends for 23 consecutive years, Lockheed Martin appeals to investors seeking stable income and shareholder returns.
- Technology Spending Opportunities: The Pentagon's budget includes $66 billion for overall tech spending and $13.4 billion specifically for AI, marking the first time dedicated AI expenditures are highlighted, which presents growth opportunities for Lockheed in autonomous systems, enhancing its value as a government supplier.
- Investor Considerations: While Lockheed Martin was not included in The Motley Fool Stock Advisor's current top stock picks, its unique positioning at the intersection of defense and technology may offer long-term growth potential for investors, especially in a market increasingly focused on tech themes.
See More
Lockheed Martin Poised to Acquire Ultra Maritime for $3.5 Billion
- Acquisition Potential: Lockheed Martin is actively pursuing the acquisition of Ultra Maritime for approximately $3.5 billion, with an agreement potentially announced as early as next week, which would further solidify its leadership in the maritime defense sector.
- Market Competition: While Lockheed Martin is the frontrunner, other U.S. and European defense firms remain in the bidding process, indicating a sustained demand for maritime defense technology that could drive industry consolidation.
- Revenue Growth: Ultra Maritime is projected to reach approximately $784 million in revenue by 2026, up from $494 million in 2023, bolstered by Advent's $170 million investment in product development over the past three years, highlighting its market potential.
- Strategic Fit: This acquisition aligns with Lockheed Martin's strategic push into undersea warfare capabilities, particularly as the U.S. government urges prime contractors to ramp up weapons production, potentially opening new growth avenues for the company.
See More
Corporate Sponsorship Behind Trump's Freedom 250 Celebrations
- Corporate Sponsorship Phenomenon: A CNBC analysis reveals that 14 companies, including Boeing, Deloitte, and United Airlines, are backing both America250 and Freedom 250, indicating a complex intersection of corporate interests and politics that may influence their dealings with the government.
- Funding Transparency Issues: The sponsorship structure of Freedom 250 has been criticized for its opacity, allowing donors to gain access to Trump through contributions as high as $10 million, raising concerns about corporations seeking political influence.
- Celebration Participation Status: Despite Congress allocating $150 million for the 250th anniversary, America250 has only received $25 million, while Freedom 250 has secured nearly $80 million in funding, highlighting the financial advantage of Trump-aligned events.
- Event Organization Challenges: The Great American State Fair has faced poor participation, with at least eight states declining to join due to exhibit costs and partisan concerns, resulting in sparse crowds and equipment failures during the event.
See More
Corporate Sponsorship of Freedom 250 Raises Concerns
- Corporate Sponsorship: Major companies like Boeing, Lockheed Martin, and Oracle are sponsoring Freedom 250, and while no direct evidence links these sponsorships to government dealings, watchdogs warn this could create new avenues for corporate influence in Washington.
- Opaque Funding Structure: Freedom 250's fundraising materials indicate that donors contributing over $500,000 gain VIP access to Trump, raising ethical concerns about the transparency of funding and potential impacts on government decision-making.
- Celebration Participation: Despite Congress allocating $150 million for the 250th anniversary, Freedom 250 has secured nearly $80 million in related grants, while America250 has only received $25 million, indicating a preference among companies for Trump's version of the celebration.
- Event Issues: The Great American State Fair, a centerpiece of Freedom 250, has faced reduced state participation, sparse crowds, and technical failures, with some artists withdrawing due to concerns over the partisan nature of the event, highlighting organizational challenges.
See More
Lockheed Martin Leads Bid for Ultra Maritime Amid Rising Defense Spending
- Acquisition Bid Dynamics: Lockheed Martin (LMT) is leading the bid to acquire Ultra Maritime, with a potential deal valued at approximately $3.5 billion, reflecting the strategic need for defense companies to expand their military technology portfolios amid rising geopolitical tensions.
- Market Reaction: Following the acquisition news, LMT's stock rose by 4.62% on Thursday, although it edged down by 0.3% in after-hours trading, indicating a cautiously optimistic market sentiment regarding the deal.
- Competitive Landscape: While LMT is the frontrunner, several other bidders remain interested, highlighting Ultra Maritime's market appeal and potential value, which could drive the bidding price higher.
- Industry Context: The acquisition talks are taking place against a backdrop of increased global defense spending, particularly due to conflicts like the war in Ukraine and fighting in the Middle East, prompting defense contractors to seek acquisitions to enhance their technological capabilities for future challenges.
See More
Lockheed Martin: A Dual Opportunity in Tech and Defense
- Market Performance Analysis: Lockheed Martin's stock has fallen 15.7% over the past 90 days, currently priced at $545.04, and is 27% below its 52-week high, reflecting market disappointment regarding its expected benefits from the Iran conflict; however, it boasts a $194 billion backlog, underscoring its strong position in defense.
- Defense Spending Outlook: The U.S. government plans to allocate $1.5 trillion for defense in fiscal 2027, with half earmarked for weapons modernization and procurement, providing Lockheed Martin with a stable revenue source and reinforcing its role as a key defense contractor.
- Dividend Yield Advantage: Lockheed Martin offers a dividend yield of 2.7%, more than double that of the S&P 500 and the largest industrial ETF, and has increased its dividend for 23 consecutive years, demonstrating a commitment to shareholder returns that appeals to long-term investors.
- Technology Investment Opportunities: While not a traditional tech company, Lockheed Martin benefits from $66 billion in tech spending and $13.4 billion in dedicated AI budget within the defense budget, indicating its potential in autonomous systems and enhancing its value as a long-term supplier to the U.S. government.
See More
Lockheed Martin Stock Pullback May Be a Buying Opportunity
- Stock Price Analysis: Lockheed Martin's stock has fallen 15.7% over the past 90 days and is currently 27% below its 52-week high; however, the company boasts a $194 billion backlog, reinforcing its strong position as a defense contractor amid the U.S. government's pursuit of a $1.5 trillion defense budget for fiscal 2027.
- Dividend Growth Advantage: With a current dividend yield of 2.7%, more than double that of the S&P 500 and the largest industrial ETF, and a commitment to increasing dividends for 23 consecutive years, Lockheed Martin appeals to investors seeking stable income and shareholder returns.
- Technology Spending Opportunities: The Pentagon's budget includes $66 billion for overall tech spending and $13.4 billion specifically for AI, marking the first time dedicated AI expenditures are highlighted, which presents growth opportunities for Lockheed in autonomous systems, enhancing its value as a government supplier.
- Investor Considerations: While Lockheed Martin was not included in The Motley Fool Stock Advisor's current top stock picks, its unique positioning at the intersection of defense and technology may offer long-term growth potential for investors, especially in a market increasingly focused on tech themes.
See More
Lockheed Martin Poised to Acquire Ultra Maritime for $3.5 Billion
- Acquisition Potential: Lockheed Martin is actively pursuing the acquisition of Ultra Maritime for approximately $3.5 billion, with an agreement potentially announced as early as next week, which would further solidify its leadership in the maritime defense sector.
- Market Competition: While Lockheed Martin is the frontrunner, other U.S. and European defense firms remain in the bidding process, indicating a sustained demand for maritime defense technology that could drive industry consolidation.
- Revenue Growth: Ultra Maritime is projected to reach approximately $784 million in revenue by 2026, up from $494 million in 2023, bolstered by Advent's $170 million investment in product development over the past three years, highlighting its market potential.
- Strategic Fit: This acquisition aligns with Lockheed Martin's strategic push into undersea warfare capabilities, particularly as the U.S. government urges prime contractors to ramp up weapons production, potentially opening new growth avenues for the company.
See More
Corporate Sponsorship Behind Trump's Freedom 250 Celebrations
- Corporate Sponsorship Phenomenon: A CNBC analysis reveals that 14 companies, including Boeing, Deloitte, and United Airlines, are backing both America250 and Freedom 250, indicating a complex intersection of corporate interests and politics that may influence their dealings with the government.
- Funding Transparency Issues: The sponsorship structure of Freedom 250 has been criticized for its opacity, allowing donors to gain access to Trump through contributions as high as $10 million, raising concerns about corporations seeking political influence.
- Celebration Participation Status: Despite Congress allocating $150 million for the 250th anniversary, America250 has only received $25 million, while Freedom 250 has secured nearly $80 million in funding, highlighting the financial advantage of Trump-aligned events.
- Event Organization Challenges: The Great American State Fair has faced poor participation, with at least eight states declining to join due to exhibit costs and partisan concerns, resulting in sparse crowds and equipment failures during the event.
See More
Corporate Sponsorship of Freedom 250 Raises Concerns
- Corporate Sponsorship: Major companies like Boeing, Lockheed Martin, and Oracle are sponsoring Freedom 250, and while no direct evidence links these sponsorships to government dealings, watchdogs warn this could create new avenues for corporate influence in Washington.
- Opaque Funding Structure: Freedom 250's fundraising materials indicate that donors contributing over $500,000 gain VIP access to Trump, raising ethical concerns about the transparency of funding and potential impacts on government decision-making.
- Celebration Participation: Despite Congress allocating $150 million for the 250th anniversary, Freedom 250 has secured nearly $80 million in related grants, while America250 has only received $25 million, indicating a preference among companies for Trump's version of the celebration.
- Event Issues: The Great American State Fair, a centerpiece of Freedom 250, has faced reduced state participation, sparse crowds, and technical failures, with some artists withdrawing due to concerns over the partisan nature of the event, highlighting organizational challenges.
See More
Lockheed Martin Leads Bid for Ultra Maritime Amid Rising Defense Spending
- Acquisition Bid Dynamics: Lockheed Martin (LMT) is leading the bid to acquire Ultra Maritime, with a potential deal valued at approximately $3.5 billion, reflecting the strategic need for defense companies to expand their military technology portfolios amid rising geopolitical tensions.
- Market Reaction: Following the acquisition news, LMT's stock rose by 4.62% on Thursday, although it edged down by 0.3% in after-hours trading, indicating a cautiously optimistic market sentiment regarding the deal.
- Competitive Landscape: While LMT is the frontrunner, several other bidders remain interested, highlighting Ultra Maritime's market appeal and potential value, which could drive the bidding price higher.
- Industry Context: The acquisition talks are taking place against a backdrop of increased global defense spending, particularly due to conflicts like the war in Ukraine and fighting in the Middle East, prompting defense contractors to seek acquisitions to enhance their technological capabilities for future challenges.
See More
