Should I Buy LMT? LMT 2026 Analysis

Should You Buy Lockheed Martin Corp (LMT) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

628.180

1 Day change

5.18%

52 Week Range

645.350

Analysis Updated At

2026/01/26

Lockheed Martin Corp (LMT) is not a strong buy at this moment for a beginner investor with a long-term strategy. While the stock has positive long-term growth prospects due to increased defense spending and analyst upgrades, current political developments and hedge fund selling trends introduce uncertainty. Additionally, the stock is trading near resistance levels, and no strong proprietary trading signals are present. A hold strategy is recommended until clearer entry opportunities arise.

Technical Analysis

The technical indicators suggest a mixed outlook. The MACD is positively contracting above 0, indicating bullish momentum. RSI is neutral at 78.305, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock is trading near a resistance level (R1: 591.99), which may limit immediate upside potential.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

The low put-call ratios indicate bullish sentiment in the options market, but the implied volatility (IV) is relatively high at 25.58, suggesting potential price swings.

Technical Summary

Sell

Buy

Positive Catalysts

Analysts have recently upgraded the stock, with price targets ranging from $605 to $664, citing strong global defense demand and capacity expansions.
Increased U.S. defense spending, as proposed by Trump, could benefit Lockheed Martin in the long term.

Neutral/Negative Catalysts

Trump's executive order restricting dividends and buybacks for underperforming defense contractors may negatively impact investor sentiment.
Hedge funds are selling the stock, with a 143.99% increase in selling activity last quarter.
Gross margin dropped by 2.75% YoY in Q3 2025, indicating potential profitability concerns.

Financial Performance

In Q3 2025, revenue increased by 8.80% YoY to $18.61 billion, and EPS rose by 2.21% YoY to $6.95. However, net income slightly declined by 0.25% YoY to $1.62 billion, and gross margin dropped to 12.04%, down 2.75% YoY. The financial performance shows growth in revenue and EPS but highlights margin pressure.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are mixed but leaning positive. Recent upgrades include Truist raising the price target to $605 and Seaport Research increasing it to $664. However, some firms like JPMorgan and Morgan Stanley downgraded the stock, citing cash flow concerns and sector valuation challenges.

12 Analyst Rating

Wall Street analysts forecast LMT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LMT is 535.5 USD with a low forecast of 430 USD and a high forecast of 605 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

4 Buy

7 Hold

1 Sell

Hold

Current: 597.270

Low

430

Averages

535.5

High

605

Current: 597.270

Low

430

Averages

535.5

High

605

Seaport Research

Buy

maintain

$544 -> $664

AI Analysis

2026-01-22

Reason

Seaport Research

Price Target

$544 -> $664

AI Analysis

2026-01-22

maintain

Buy

Reason

Seaport Research raised the firm's price target on Lockheed Martin to $664 from $544 and keeps a Buy rating on the shares. The firm believes Defense spending growth will be "far bigger and last longer" than expected, the analyst tells investors.

Truist

Michael Ciarmoli

Hold

Buy

upgrade

$605

2026-01-09

Reason

Truist

Michael Ciarmoli

Price Target

$605

2026-01-09

upgrade

Hold

Buy

Reason

Truist analyst Michael Ciarmoli upgraded Lockheed Martin to Buy from Hold with a $605 price target.

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LMT Should I Buy

LMT Should I Buy

Should You Buy Lockheed Martin Corp (LMT) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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