Is Lockheed Martin stock a buy right now?
As of May 2025, Lockheed Martin (NYSE: LMT) is trading near $478, with a robust average daily trading volume of approximately 1.7 million shares—underscoring sustained investor engagement. The stock has demonstrated a resilient performance, gaining around 14% year-over-year, buoyed most recently by strong Q1 results featuring 4% revenue growth and improved profitability across core business segments. Lockheed Martin recently secured several large missile and space contracts, reinforcing its leadership amid a global uptick in defense spending. While the share price currently hovers just beneath key resistance levels and below its 200-day moving average, short-term technical signals reflect growing bullish momentum. Analysts continue to view the sector favourably as geopolitical tensions fuel steady government demand for advanced defense solutions, with digital innovation and interoperability being key industry drivers. Market sentiment leans constructive, noting both the company’s $173 billion order backlog and its consistent dividend payouts as attractive features for Canadian investors seeking stable growth. The consensus of more than 35 national and international banks sets a target price in the vicinity of $621 per share, bolstered by recurring contract wins and a strong innovation pipeline. As defense sector allocations rise, now presents a moment of particular interest for consideration.
- Strong $173 billion order backlog ensures multi-year revenue visibility.
- Solid Q1 2025 results: revenue and earnings per share both outpaced analyst estimates.
- Stable and attractive dividend yield of 2.76%, supporting total return.
- Market leadership across aeronautics, missile, and space technologies.
- Large R&D commitment drives ongoing technological innovation and competitiveness.
- Share price remains below the 200-day moving average, signaling lingering long-term caution.
- Ongoing dependence on U.S. federal budgets introduces episodic uncertainty for contract flows.
- What is Lockheed Martin?
- How much is Lockheed Martin stock?
- Our full analysis on Lockheed Martin </b>stock
- How to buy Lockheed Martin stock in Canada?
- Our 7 tips for buying Lockheed Martin stock
- The latest news about Lockheed Martin
- FAQ
Why trust HelloSafe?
At HelloSafe, our specialist has been monitoring Lockheed Martin's performance for more than three years. Each month, hundreds of thousands of users across Canada rely on us to break down market trends and pinpoint top investment opportunities. Our analyses are provided for information purposes only and should not be considered investment advice. In line with our ethical charter, we have never received, nor will we ever receive, any compensation from Lockheed Martin.
What is Lockheed Martin?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | U.S.-based, Lockheed benefits from stable U.S. defense spending and global influence. |
| 💼 Market | New York Stock Exchange (NYSE) | Traded on NYSE in USD, offering high liquidity for global and Canadian investors. |
| 🏛️ ISIN code | US5398301094 | Unique international identifier; required for trading and cross-border transactions. |
| 👤 CEO | Jim Taiclet | CEO since 2020, brings defense and telecom experience, ensuring strong industry leadership. |
| 🏢 Market cap | $111.93 billion USD | Large cap status reflects market leadership and investor confidence in future growth. |
| 📈 Revenue | $73.75–$74.75 billion (2025 projection) | Continued stability; visibility supported by a $173 billion order backlog. |
| 💹 EBITDA | ~$9.7 billion USD (2025 est.) | Strong EBITDA margin signals robust profitability and efficient operations. |
| 📊 P/E Ratio (Price/Earnings) | 20.6 (trailing), 17.5 (forward) | Valuation aligns with sector; forward P/E suggests earnings growth expectation. |
How much is Lockheed Martin stock?
The price of Lockheed Martin stock is rising this week. As of today, shares are trading at $477.72 USD, reflecting a 24-hour dip of 0.15% but a weekly gain of about 2.1%. The company holds a market cap of $111.93 billion, with a strong three-month average daily volume of 1.7 million shares. Lockheed Martin maintains a P/E ratio of 20.59, a dividend yield of 2.76%, and a notably low beta of 0.39, indicating below-average volatility. With its stable performance and reliable dividends, Lockheed Martin offers a balanced investment opportunity for Canadians looking to diversify into global defense.
Compare the best brokers in Canada!Compare brokersOur full analysis on Lockheed Martin stock
Our team has just completed a comprehensive review of Lockheed Martin’s latest financial results and stock performance over the past three years, integrating a rich matrix of data—from advanced technical indicators to sector trends and proprietary comparative analysis against peers. By layering recent market signals over Lockheed’s evolving fundamental and strategic strengths, our multi-source approach aims to shed light on the attributes that set this blue-chip defence leader apart. So, why might Lockheed Martin stock once again become a strategic entry point into the global aerospace and defence sector in 2025?
Recent Performance and Market Context
Lockheed Martin (NYSE: LMT) currently trades at $477.72 (as of May 2, 2025), firmly positioning itself as a centerpiece in the global aerospace and defence landscape. Despite a modest 24-hour dip of -0.15%, the stock has delivered a robust +14% gain over the past twelve months—a sharp outperformance relative to many industrial and technology peers. After a period of consolidation and correction—evident in the -5.8% pullback over the last six months from its 52-week highs—the stock now appears to have stabilized in a zone that has historically attracted renewed buying interest.
Recent positive momentum can be directly attributed to Lockheed’s outperforming Q1 2025 earnings report, which saw both revenues and profits accelerate ahead of analyst expectations. Segmental strength, particularly in Missiles and Fire Control (sales up +13% YoY) and Rotary and Mission Systems (+6% YoY), signals not just operational resilience but also ongoing demand driven by expanding global defense budgets.
Beyond company specifics, the macroeconomic and geopolitical context is particularly supportive. As geopolitical tensions escalate and nations prioritize defense modernization, companies like Lockheed with vast and diversified product portfolios are increasingly viewed as strategic beneficiaries of these secular trends. Notably, the aerospace & defence sector is forecast to experience continued budgetary tailwinds into 2025, cementing a favourable backdrop for fundamental growth and share price appreciation.
Technical Analysis
A close look at Lockheed Martin’s technical profile reveals a nuanced but promising scenario for potential buyers:
- Momentum Indicators: The 14-day RSI stands at 60.19, neither in overbought nor oversold territory, suggesting balanced market sentiment with a tilt towards gradual accumulation.
- MACD: At 4.49, the MACD figure denotes positive momentum and a short-term upward bias.
- Moving Averages: The current share price is trading above both its 20-day ($458.31) and 50-day ($453.45) moving averages, signalling short- and medium-term bullishness. Importantly, these crossovers often precede more sustained rallies. The longer-term 200-day average, however, sits higher at $506.45, suggesting that while a structural recovery is still in progress, the recent price action may be laying the foundation for a broader upside reversal.
Support and Resistance
- Support Levels: The band from $453.45 to $462.64 has repeatedly shown itself to be a fortress of buying interest, limiting downside risk for new entrants.
- Resistance Levels: Immediate resistance is noted at $477.21—just beneath the current trading price—but a decisive breakout above this level could open the technical pathway towards the next price objectives, ultimately realigning the stock with its longer-term moving averages.
Short- and Medium-Term Structure: The recent upturn above key short-term averages, particularly when combined with improving momentum signals, indicates that Lockheed Martin may be embarking on a new bullish phase. For technically-minded investors, the convergence of stable RSI, renewed buying volume, and well-defined support presents a favourable risk-reward environment.
Fundamental Analysis
Lockheed Martin’s Q1 2025 results underscore the lasting excellence of its fundamentals:
- Revenue Growth and Profitability: Quarterly revenues reached $18.0 billion, up 4% year-on-year, and net earnings expanded to $1.7 billion. Earnings per share climbed to $7.28, compared to $6.39 a year ago—reflecting strong margin discipline and growing operational efficiency.
- Valuation: With a trailing P/E of 20.59 and a forward P/E of 17.54, Lockheed trades at a reasonable multiple by sector standards, especially given its moat-like market positioning. The company’s price-to-sales ratio, in the comfortable mid-single digits, is justified by its robust backlog and predictable cash flows.
- Dividend Attractiveness: The dividend yield of 2.76%—well above the S&P 500 average—paired with an annual payout of $13.20 per share, underlines Lockheed’s appeal as both a growth and income vehicle.
- Structural Strengths: Lockheed’s legendary leadership in stealth aircraft, missile systems, and space capabilities, supported by a $173 billion backlog, ensure multi-year revenue visibility that is rare even among top-tier blue chips. Massive quarterly R&D investments ($850 million in Q1 alone) further reinforce its lead in the industry, guaranteeing that technological innovation and product renewal remain constant competitive levers.
Volume and Liquidity
The liquidity profile of Lockheed Martin is yet another argument in favour of its investment case:
- Sustained Trading Volume: With a 3-month average daily volume of 1.7 million shares, Lockheed enjoys robust market liquidity. This consistent turnover reflects confidence from institutional investors, ensuring price efficiency and minimizing execution risk.
- Float Dynamics: A well-structured capital base (234.3 million shares outstanding) and diversified institutional ownership not only foster valuation stability but also position the stock for dynamic repricing in response to positive news or sector rotation into defense equities.
Catalysts and Positive Outlook
Lockheed’s medium- and long-term outlook is anchored by a set of value-creating catalysts:
- Backlog Strength: The $173 billion backlog equates to over two years of forward sales—an unrivalled indicator of future cash flow stability and corporate durability.
- New Programs and Contracts: Recent major contract wins in missile systems—including Precision Strike Missiles, THAAD, and the Trident II program—provide a rapid pipeline for incremental revenues, while deepening relationships with key government customers.
- Innovation and ESG: Persistent R&D commitments, coupled with the company’s “21st Century Security” focus, point to an emerging generation of digitally interoperable systems, unmanned platforms, and sustainable defence technologies—a set of themes the market increasingly rewards.
- Macroeconomic Drivers: The environment of heightened geopolitical instability, particularly in Europe and Asia-Pacific, continues to funnel increased government spending toward defense solutions where Lockheed is considered a global standard-bearer.
- Shareholder Returns: Ongoing capital return programs—over $1.5 billion in Q1 2025 alone—evidence ongoing management discipline and an established dividend growth record that is highly valued in periods of market uncertainty.
Investment Strategies
Lockheed’s unique risk/return profile enables a variety of potential entry points and strategic approaches:
- Short-Term Positioning: For tactical investors, the clustering of support zones around $460 and the recent bullish cross above short-term moving averages present a timely platform to capture a technical upswing, especially if upcoming catalyst events (such as new contract announcements) exceed expectations.
- Medium-Term Opportunity: Investors seeking to capitalize on upcoming backlogs conversion, anticipated financial outperformance (guidance: full-year sales of $73.75-$74.75 billion, EPS of $27.00-$27.30), and further government contracts may find the current share price an attractive entry ahead of these likely value-inflection points.
- Long-Term Hold: For core, long-term portfolios, Lockheed’s entrenched competitive positioning, strong cash generation, and consistent dividend growth make it a foundational holding in the aerospace and defence sector. Investors looking decades ahead may view present price levels—still trading below the 200-day average and off all-time highs—as a strategic window into a high-quality, defensive compounder.
Is It the Right Time to Buy Lockheed Martin?
Drawing on recent operational excellence, solid financial stewardship, and a macro environment ripe for long-term sector growth, Lockheed Martin stands out as a compelling name to consider. The company’s diversified portfolio, technological edge, and robust backlog provide a foundation for both stability and outperformance, while its fair valuation and reliable income proposition further reinforce its attractiveness.
Technical signals hint that the shares may be transitioning from a corrective phase towards renewed momentum, especially should the price sustainably surpass immediate resistance. Meanwhile, unbroken growth in revenues and profits, record backlog, and enduring support from global defense spending initiatives give confidence that Lockheed Martin’s prospects remain favourably skewed to the upside.
In sum, the fundamentals, technicals, and catalysts seem well-aligned, justifying a renewed focus on LMT as a cornerstone aerospace and defence stock in 2025. For Canadian investors seeking resilient, innovative, and income-generating exposure to the global security theme, Lockheed Martin may indeed represent an excellent opportunity to strategically position for the next phase of sector-driven growth.
How to buy Lockheed Martin stock in Canada?
Buying Lockheed Martin stock online is a straightforward and secure process when you use a regulated broker based in Canada. As an investor, you can choose between two main methods: a direct, “spot” purchase of shares, or trading Contracts for Difference (CFDs) that let you speculate on the price movements without owning the underlying shares. Each approach has its own features, fees, and risk levels. To help you make the right decision, you’ll find a broker comparison further down the page.
Cash buying
A cash (spot) purchase means you buy actual Lockheed Martin shares in your name, giving you direct ownership and access to dividends. Canadian online brokers typically charge a fixed commission per order, commonly around $5 to $10 CAD, regardless of the trade size.
Important Information
Example:
If the Lockheed Martin share price is $477.72 USD, with 1 USD = 1.36 CAD (approx.), that’s about $649.70 CAD per share.
With a $1,000 CAD investment, after a $5 commission, you can buy approximately 1 share (the remainder stays as cash or is used for partial share programs if your broker permits).
✔️ Gain scenario:
If the share price rises by 10%, your 1 share would be worth about $714.70 CAD ($649.70 + 10%).
Result: +$65 gross gain, or +10% on your investment (before currency fluctuations and taxes).
Trading via CFD
CFD (Contract for Difference) trading lets you speculate on Lockheed Martin’s share price without owning the stock. CFDs are flexible, allowing you to use leverage—meaning a small deposit controls a larger market position. CFD brokers in Canada typically charge a spread (the difference between the buy and sell price) and may apply overnight financing fees if you hold positions for multiple days.
Important Information
Example:
You open a CFD position worth $1,000 CAD with 5x leverage, giving you $5,000 CAD exposure to Lockheed Martin shares.
✔️ Gain scenario:
If Lockheed Martin’s share price rises by 8%, your position appreciates by 8% × 5 (leverage) = 40%.
Result: +$400 profit on your $1,000 investment (not including spreads and overnight fees).
Final advice
Before investing, it is vital to compare the fees, trading conditions, and available features of different Canadian brokers to find the most suitable platform for your needs. Whether you choose to buy shares outright for long-term growth and dividends, or trade CFDs for flexibility and leverage, your decision should be guided by your financial objectives, risk tolerance, and investment horizon. For a detailed comparison of leading brokers, consult the comparator further down the page.
Our 7 tips for buying Lockheed Martin stock
| 📊 Step | 📝 Specific tip for Lockheed Martin |
|---|---|
| Analyze the market | Assess Lockheed Martin’s momentum by reviewing both sector trends—such as global defense spending in response to geopolitical events—and company data, including recent earnings growth, backlog size, and competitive strengths in missile and space tech. |
| Choose the right trading platform | Select a Canadian brokerage that enables direct access to the NYSE with fair conversion rates and low commission on U.S. dollar trades, facilitating cost-effective purchases of Lockheed Martin shares. |
| Define your investment budget | Decide how much to invest according to your risk tolerance and diversify with Canadian and U.S. stocks; consider the current LMT price near $477 and its 52-week range to determine your entry points. |
| Choose a strategy (short or long term) | For most Canadian investors, a long-term, dividend-focused approach is strategic, given Lockheed Martin’s industry backlog, stable history, and attractive 2.76% yield; active traders may also look for short-term opportunities around key technical support and resistance levels. |
| Monitor news and financial results | Follow Lockheed Martin’s quarterly earnings announcements, contract wins, and news related to U.S. budget approvals, as these have direct impacts on share price and outlook. |
| Use risk management tools | Set up stop-loss orders or trailing stops when buying LMT to help protect your investments from sudden drops, and regularly rebalance your portfolio to manage sector exposure. |
| Sell at the right time | Review your investment targets and consider reducing positions if Lockheed Martin approaches its resistance levels or if new risks—like policy shifts or negative earnings surprises—emerge; always base decisions on updated analysis rather than short-term fluctuations. |
The latest news about Lockheed Martin
Lockheed Martin’s Q1 2025 results exceed analyst expectations, with revenue and earnings growth supporting bullish sentiment. In the quarterly results released on April 22, 2025, Lockheed Martin reported revenues of $18.0 billion, representing 4% year-over-year growth and beating market estimates, with net earnings rising to $1.7 billion. Earnings per share reached $7.28, up from $6.39 in Q1 2024, while free cash flow remained robust at $955 million. Notably, profit growth was strong across all major segments—especially Missiles and Fire Control, which recorded a significant 50% jump in operating profit. The company also exceeded expectations in margins and continues to return substantial capital to shareholders, including $1.5 billion through dividends and share repurchases for the quarter, underlining the stock’s appeal to income-focused Canadian investors seeking exposure to reliable U.S. dividend payers.
Recent multi-billion-dollar defense contract wins reinforce Lockheed Martin's backlog and strengthen prospects for Canadian supply chain partners. Lockheed Martin secured critical missile contract renewals and extensions in Q1, including the Precision Strike Missiles, THAAD, JASSM/LRASM, and the Trident II D5 Life Extension, amounting to up to $10 billion in future work. These contracts not only reinforce the company’s already formidable $173 billion backlog but also create ongoing opportunities for Canadian firms integrated into Lockheed’s extensive North American supply network, particularly regarding aerospace materials, specialized electronics, and systems integration. Canadian defense and manufacturing sectors stand to benefit from Lockheed's healthy order pipeline, which may translate into subcontracting and partnership opportunities.
Technical momentum has turned positive, with LMT shares trading above key short-term moving averages and seeing renewed investor interest. LMT shares have shown a weekly gain of about 2.1%, closing recently at $477.72, and current pricing is well above the 20-day and 50-day moving averages. These technical signals are considered bullish in the short term, as the stock’s RSI stands at a balanced 60.19, indicating no signs of being overbought or oversold. Despite trading below the 200-day moving average, which warrants longer-term caution, the improvement in momentum may attract Canadian institutional funds and retail investors searching for entry points amidst the global defense sector’s positive outlook.
Ongoing strategic investment in R&D and digital defense platforms enhances Lockheed Martin’s innovation edge, presenting partnership opportunities for Canadian tech companies. Lockheed Martin continues to invest heavily in research and development, with over $850 million spent in Q1 2025 on next-generation programs, space technologies, and interoperable digital systems. This accelerated innovation strategy aligns with Canada’s own defense modernization and digitalization priorities, opening doors for Canadian aerospace engineers, software developers, and advanced manufacturing services to participate in Lockheed-led projects, particularly those focusing on cyber-resilience, autonomous systems, and integrated command and control.
Resilient dividend yield and stable cash flows make Lockheed Martin especially attractive for Canadian income investors amid ongoing geopolitical tension. With a forward dividend yield of 2.76% and annual payouts of $13.20 per share, Lockheed’s consistent distributions and low beta of 0.39 provide a compelling risk/reward balance for Canadian investors, especially as defense budgets remain robust globally. LMT’s broad institutional ownership, combined with its accessibility on major Canadian brokerage platforms and eligibility for investment via tax-advantaged RRSP and TFSA accounts, further enhances its suitability for long-term portfolios seeking a blend of income and defensive sector exposure.
FAQ
What is the latest dividend for Lockheed Martin stock?
Lockheed Martin currently pays a quarterly dividend of $3.30 per share, totaling $13.20 annually. The most recent payment was in March 2025. With a yield of about 2.76%, Lockheed Martin has a well-established track record of both maintaining and gradually increasing its dividend over time, underlining its commitment to rewarding shareholders through regular distributions.
What is the forecast for Lockheed Martin stock in 2025, 2026, and 2027?
Based on the current share price of $477.72, projections suggest a value of $621 at the end of 2025, $716 at the end of 2026, and $955 by the end of 2027. The defense sector is benefiting from strong global spending trends and Lockheed Martin’s robust order backlog supports a favorable outlook among analysts for the coming years.
Should I sell my Lockheed Martin shares?
Lockheed Martin’s combination of strategic resilience, steady dividend payments, and a solid $173 billion backlog makes the case for holding shares compelling. The company’s historic performance, market leadership in aerospace and defense, and reliable earnings growth suggest it remains well-positioned for mid- to long-term investors. Given its fundamentals and sector stability, maintaining your position may be appropriate for many investors.
How are Lockheed Martin dividends and capital gains taxed in Canada?
Dividends from U.S. companies like Lockheed Martin are subject to a 15% U.S. withholding tax for Canadian residents, which can generally be claimed as a foreign tax credit. If held inside an RRSP, this withholding tax is typically waived due to a tax treaty. However, capital gains on U.S. stocks are taxed in Canada at the usual capital gains rate, with no special exemption.
What is the latest dividend for Lockheed Martin stock?
Lockheed Martin currently pays a quarterly dividend of $3.30 per share, totaling $13.20 annually. The most recent payment was in March 2025. With a yield of about 2.76%, Lockheed Martin has a well-established track record of both maintaining and gradually increasing its dividend over time, underlining its commitment to rewarding shareholders through regular distributions.
What is the forecast for Lockheed Martin stock in 2025, 2026, and 2027?
Based on the current share price of $477.72, projections suggest a value of $621 at the end of 2025, $716 at the end of 2026, and $955 by the end of 2027. The defense sector is benefiting from strong global spending trends and Lockheed Martin’s robust order backlog supports a favorable outlook among analysts for the coming years.
Should I sell my Lockheed Martin shares?
Lockheed Martin’s combination of strategic resilience, steady dividend payments, and a solid $173 billion backlog makes the case for holding shares compelling. The company’s historic performance, market leadership in aerospace and defense, and reliable earnings growth suggest it remains well-positioned for mid- to long-term investors. Given its fundamentals and sector stability, maintaining your position may be appropriate for many investors.
How are Lockheed Martin dividends and capital gains taxed in Canada?
Dividends from U.S. companies like Lockheed Martin are subject to a 15% U.S. withholding tax for Canadian residents, which can generally be claimed as a foreign tax credit. If held inside an RRSP, this withholding tax is typically waived due to a tax treaty. However, capital gains on U.S. stocks are taxed in Canada at the usual capital gains rate, with no special exemption.
