Should I buy Lockheed Martin stock in 2025?
Is Lockheed Martin stock a buy right now?
ScoreLockheed Martin (NYSE: LMT) stands as a global powerhouse in the aerospace and defense sector—a sector increasingly recognised by New Zealand investors seeking reliable international exposure. As of 30 May 2025, the stock trades at approximately $473.69 USD, with a robust average daily trading volume of 1.6 million shares. The company’s financials remain impressive: a $71 billion revenue in 2024, a market cap near $111 billion, and a steady dividend yield of 2.81%. Recent news includes record-breaking order backlogs and new high-profile US defense contracts (notably a $509.8 million US Air Force deal in May 2025), underscoring the company’s vital role in global security. While 2024 earnings were briefly affected by unexpected classified program losses, Lockheed Martin rapidly demonstrated resilience—its advanced technologies, international reach, and expanding missile and space programmes all provide solid foundations for growth. Market sentiment in the defense industry is constructive, as geopolitical developments continue to support global demand. Technical indicators now signal strong momentum for LMT stock, with multiple moving averages pointing to a positive trend. Reflecting a consensus from over 27 leading banks worldwide, the current target price stands at $615, providing investors with a well-supported point of reference. In summary, Lockheed Martin represents a compelling case for consideration within a balanced, future-focused portfolio.
- ✅Record $176 billion order backlog ensures long-term revenue visibility and stability.
- ✅Consistently growing dividends with a 2.81% yield offer attractive income potential.
- ✅Major new US defense contracts reinforce leadership and drive future earnings.
- ✅Strong international expansion, especially in Europe and advanced missile programmes.
- ✅Industry-leading innovation in aerospace, defense, and advanced technology segments.
- ❌Earnings volatility possible due to classified program losses impacting short-term results.
- ❌Heavy reliance on US government budgets may inject occasional cyclical uncertainty.
Score- ✅Record $176 billion order backlog ensures long-term revenue visibility and stability.
- ✅Consistently growing dividends with a 2.81% yield offer attractive income potential.
- ✅Major new US defense contracts reinforce leadership and drive future earnings.
- ✅Strong international expansion, especially in Europe and advanced missile programmes.
- ✅Industry-leading innovation in aerospace, defense, and advanced technology segments.
Is Lockheed Martin stock a buy right now?
- ✅Record $176 billion order backlog ensures long-term revenue visibility and stability.
- ✅Consistently growing dividends with a 2.81% yield offer attractive income potential.
- ✅Major new US defense contracts reinforce leadership and drive future earnings.
- ✅Strong international expansion, especially in Europe and advanced missile programmes.
- ✅Industry-leading innovation in aerospace, defense, and advanced technology segments.
- ❌Earnings volatility possible due to classified program losses impacting short-term results.
- ❌Heavy reliance on US government budgets may inject occasional cyclical uncertainty.
Score- ✅Record $176 billion order backlog ensures long-term revenue visibility and stability.
- ✅Consistently growing dividends with a 2.81% yield offer attractive income potential.
- ✅Major new US defense contracts reinforce leadership and drive future earnings.
- ✅Strong international expansion, especially in Europe and advanced missile programmes.
- ✅Industry-leading innovation in aerospace, defense, and advanced technology segments.
- What is Lockheed Martin?
- How much is the Lockheed Martin stock?
- Our full analysis of the Lockheed Martin stock
- How to buy Lockheed Martin stock in New Zealand?
- Our 7 tips for buying Lockheed Martin stock
- The latest news about Lockheed Martin
- FAQ
- On the same topic
What is Lockheed Martin?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | Headquartered in Maryland, Lockheed Martin is the largest US defence and aerospace firm. |
| 💼 Market | NYSE (New York Stock Exchange) | LMT is traded on the US NYSE, accessible to NZ investors through global brokers. |
| 🏛️ ISIN code | US5398301094 | Unique identifier for international trading and settlement purposes. |
| 👤 CEO | Jim Taiclet | CEO since 2020, steering growth and innovation in defence and aeronautics. |
| 🏢 Market cap | $110.98 billion USD | Large-cap company indicating stability but lower historical growth rates. |
| 📈 Revenue | $71.0 billion USD (2024) | Strong revenue, +5% vs 2023, driven by robust defence contract pipeline. |
| 💹 EBITDA | ~$9.5 billion USD (2024, est.) | Solid operating profits support dividend, but exposed to classified program volatility. |
| 📊 P/E Ratio (Price/Earnings) | 20.24 | Fairly valued compared to peers, suggesting moderate growth expectations. |
How much is the Lockheed Martin stock?
The price of Lockheed Martin stock is rising this week. As of now, the share is trading at $473.69 USD, up $3.71 (+0.79%) over the last 24 hours, though it has seen a slight -1.03% change over the past week. Lockheed Martin’s current market capitalisation stands at $110.98 billion, with an average 3-month trading volume of about 1.6 million shares.
| Indicator | Value |
|---|---|
| Price/Earnings Ratio | 20.24 |
| Dividend Yield | 2.81% |
| Beta | 0.29 |
This stability, coupled with strong fundamentals, could appeal to New Zealand investors looking for resilient exposure to the global defence sector.
Check out New Zealand's best brokers!Compare brokersOur full analysis of the Lockheed Martin stock
Having rigorously reviewed Lockheed Martin Corporation’s most recent financial results and analysed the stock’s trajectory over the past three years, we have synthesised a broad range of technical, fundamental, and macroeconomic data, run through our proprietary algorithms and comparative models. Lockheed Martin stands out as a defensive technology leader, with robust underlying strength and several emerging catalysts that have not been fully appreciated by the market. So, why might Lockheed Martin stock once again become a strategic entry point into the aerospace and defence sector in 2025?
Recent Performance and Market Context
Lockheed Martin (NYSE: LMT) closed at $473.69 USD on 30 May 2025, reflecting a modest +0.79% intraday uptick even as it marks a -10.5% six-month retreat—largely attributable to short-term sector volatility and one-off classified program costs. Despite minor consolidation over the past quarter, LMT has outperformed broader US industrial indexes with a +0.71% annual return, in sharp contrast to the steeper corrections seen across some peer defence names. Cumulative three-year gains remain notable, underlining the stock’s capacity to preserve value in turbulent macro conditions.
The sector’s backdrop has rarely been more favourable. Heightened geopolitical risk—particularly in Eastern Europe and the Asia-Pacific—has prompted a broad revaluation of defence equities. This is further amplified by the anticipated increases in US and allied defence budgets under the current US administration, with bipartisan support anchoring multi-year procurement cycles. For NZ investors, Lockheed Martin’s global supply-chain entrenchment—spanning missile defence, aerospace systems, and space technology—positions the company at the core of ‘hard tech’ indispensable to both commercial and defence clients. Notably, LMT’s robust order book, record new contract wins in early 2025, and participation in next-generation missile defence (Golden Dome, F-35) highlight a very supportive demand environment.
Technical Analysis
Technical signals for Lockheed Martin are turning decisively bullish. With a 14-day RSI at 57.44, the stock is comfortably above oversold thresholds, suggesting sustainable near-term buying interest. MACD readings (current value +0.01) confirm a positive cross, signalling potential momentum acceleration. Multiple moving averages—five-day ($472.41), 20-day ($472.77), 50-day ($471.98), 100-day ($469.21), and 200-day ($469.48)—are all stacking as buy signals and collectively trace an upward sloping structure.
Crucially, the $465.32 zone has established itself as a solid support, holding through recent volatility and serving as a platform for repeated rebounds. The next key technical ceiling, $474.56, sits within near-term reach. The stock’s trading band over the last 52 weeks ($418.88 to $618.95) illustrates ample headroom for appreciation as positive catalysts materialise. Importantly, composite technical models are now registering a 12/12 “Strong Buy” signal on moving averages, suggesting LMT may have completed a corrective phase and be poised to enter a new bullish cycle.
Fundamental Analysis
Lockheed Martin’s fundamentals are compelling, driven by:
- Consistent revenue growth: 2024 revenue reached $71.0 billion (+5% y/y), with 2025 guidance of $73.75-$74.75 billion representing ongoing growth despite challenging macro headwinds.
- Resilient profitability: FY2024 EPS landed at $22.31 (impacted by $2.0 billion in classified program losses), but guidance for FY2025—$27.00–$27.30—signals a pronounced earnings rebound. Free cash flow also grew to $5.3 billion in 2024, projected to escalate to $6.8 billion in 2025.
- Attractive valuation metrics: At a trailing P/E of 20.24 and a yield of 2.81%, LMT sits at a discount to historical sector averages, particularly when adjusted for growth visibility and risk profile. The PEG (Price/Earnings to growth) ratio remains balanced and is more attractive given strong growth trajectories in both Aeronautics and Missile Defence.
- Structural strengths: Lockheed Martin enjoys extensive competitive moats—dominant US market share (~75% DoD sales), a $176 billion order backlog (as of end 2024), and world-leading R&D capacities across F-35, missile defence, satellite, and hypersonic programs. The diversified exposure to four business units (Aeronautics, Missiles/Fire Control, Rotary/Mission Systems, Space) helps mitigate execution risk and drives cross-segment innovation.
Furthermore, a supportive capital return policy ($6.8bn to shareholders via buybacks and dividends in 2024) and stable leadership under CEO Jim Taiclet enhance confidence in long-term stewardship.
Volume and Liquidity
Liquidity indicators for LMT remain robust and reflect sustained institutional interest:
- Average three-month daily trading volume: 1.60 million shares, consistent with large-cap blue-chip benchmarks.
- Market capitalisation: $110.98 billion, positioning LMT among the most actively-traded defence equities globally.
- Public float: 234.11 million shares, supporting deep order books and dynamic bid-ask ranges even during periods of heightened volatility.
Such liquidity ensures LMT shares are accessible for NZ retail and professional investors alike, enabling efficient execution for both short-term tactical positioning and long-term accumulation.
Catalysts and Positive Outlook
Several imminent and structural catalysts underpin a constructive medium-term view:
- Major contract wins: In 2025 alone, LMT secured a $509.8 million USAF contract modification and a $214.36 million U.S. Army award—contributing to the company’s record-high order backlog and reinforcing revenue visibility into 2027 and beyond.
- Next-generation platforms: The F-35 program delivered 110 jets in 2024 (a 12% y/y increase), unlocking future maintenance, upgrade, and support revenues. Ongoing investment in missile defence, guided munitions, and hypersonics is expected to capture additional share as allied nations accelerate their own procurement cycles.
- Favourable macro trends: Geopolitical flashpoints and an assertive US/European defence investment environment continue to underpin budgetary expansion. Growth in the US sector is mirrored by robust demand across NATO partners and Indo-Pacific allies, a trend expected to remain for years given the enduring nature of global security priorities.
- ESG and innovation: LMT continues to invest in sustainability and digital transformation, strengthening its positioning for next-generation defence supply chains and lighter, more advanced platforms.
Overall, consensus analyst price targets average $524.23 (+10.7% vs. current), with a bullish skew (range $408–$670). Market sentiment remains positive, supported by visible order pipelines, innovation leadership, and a supportive regulatory backcloth.
Investment Strategies
For tactically-minded investors, Lockheed Martin’s recent retracement (-10.5% over six months) offers an ideal setup to enter at technically attractive levels, with downside limited by robust support near $465 and upside capped only by the 52-week high. The current cluster of buy signals across all major moving averages strongly suggests LMT is transitioning out of a consolidation period into a new momentum phase.
Medium-term strategies could focus on accumulating positions ahead of upcoming program deliveries (notably F-35 and missile contracts in Q3-Q4 2025) and budgeting cycles, which tend to act as share price catalysts. For long-term investors, Lockheed Martin’s secular drivers—rising defence procurement budgets, advanced R&D leadership, and a sticky revenue model anchored by government contracts—match well with goals of capital preservation and dividend growth. The company’s attractive yield (2.81% on latest payout) and continuous share repurchase program provide tangible total return visibility.
Entry ahead of major catalysts (such as H2 contract announcements, earnings, or sector-wide budget releases) appears particularly well-timed for NZ investors looking to access both USD returns and global platform exposure.
Is it the Right Time to Buy Lockheed Martin?
Lockheed Martin’s combination of technical, fundamental, and strategic strengths is striking in today’s market context:
- A resilient, diversified business model with dominant sector positioning.
- Undervalued relative to growth and global peers, supported by a generous and stable dividend.
- Record order backlog and positive momentum from recent contract wins.
- Favourable macro, regulatory, and geopolitical tailwinds set to accelerate revenue and profit growth for 2025 and beyond.
While mindful of program-specific volatility and US budget cycles, the core thesis remains that LMT’s intrinsic value is not fully captured at current levels. The consensus view—supported by both quantitative signals and industry dynamics—is that Lockheed Martin stock may be entering a renewed bullish phase, and the present juncture seems to represent an excellent opportunity for strategic positioning.
In summary, with technicals improving, fundamentals accelerating, and sector tailwinds gathering strength, Lockheed Martin deserves renewed attention from NZ investors seeking stable, quality technology exposure with robust upside potential in the evolving global defence landscape.
How to buy Lockheed Martin stock in New Zealand?
Buying shares of Lockheed Martin Corporation (LMT) online is both simple and secure for New Zealand investors, thanks to regulated brokerage platforms. You can access US markets directly from your NZ-based account, with protections in place for your funds and data. The two most popular ways to invest are: spot (cash) buying—making you a direct shareholder—and via Contracts for Difference (CFDs), which let you speculate on price movements with or without leverage. To help you choose the right platform and method, you’ll find a comparison of leading NZ-accessible brokers further down this page.
Spot Buying
A cash purchase of Lockheed Martin shares means you become a legal owner of the company’s stock, entitling you to dividends and shareholder rights. When using NZ-friendly online brokers, you typically pay a fixed commission per order—often around NZD $5 to $15 per trade, plus a small currency conversion fee when buying US stocks.
Example
If Lockheed Martin trades at $473.69 USD per share (about $769 NZD at an exchange rate of 0.62), a NZ$1,000 investment after a NZ$8 brokerage fee allows you to buy roughly 1.29 shares.
✔️ If the price rises by 10%:
Your investment is now worth approximately NZ$1,100.
Result: A NZ$100 gross gain, or +10% return on your original NZ$1,000.
Trading via CFD
CFDs (Contracts for Difference) are financial derivatives that let you trade Lockheed Martin share price movements without owning the underlying shares. They are popular for short-term strategies and allow the use of leverage. Fees typically include a bid-ask spread (e.g., $0.50–$2 per share) and a small overnight holding charge if the position stays open more than a day.
Example
With NZ$1,000, you open a 5x leveraged CFD on Lockheed Martin—giving you NZ$5,000 in effective market exposure.
✔️ If the stock rises 8%:
Your position gains 8% × 5 = 40%. That’s a NZ$400 profit on your NZ$1,000 stake (excluding fees).
Final Advice
Before investing, it’s vital to compare broker fees, market access, currency conversion rates, and trading features. Each method suits different objectives: spot buying is typically for long-term investors seeking ownership and dividends, while CFDs may appeal to more active traders looking to use leverage. The broker comparison below will help you identify the platform best aligned with your goals and trading style.
Check out New Zealand's best brokers!Compare brokersOur 7 tips for buying Lockheed Martin stock
| 📊 Step | 📝 Specific tip for Lockheed Martin |
|---|---|
| Analyse the market | Evaluate the global defence sector trends and how geopolitical events, especially US policy shifts, influence Lockheed Martin’s long-term order book and revenue prospects. |
| Choose the right trading platform | Select an NZ-compliant brokerage that offers access to the NYSE, supports trading in USD, and has transparent fees for buying US-listed stocks such as Lockheed Martin. |
| Define your investment budget | Consider currency risk and dividend withholding tax when setting your investment amount; limit exposure to a proportion that reflects your diversification and long-term goals. |
| Choose a strategy (short or long term) | For most NZ investors, a long-term “buy and hold” strategy suits Lockheed Martin, leveraging its stable dividends, large contract pipeline, and growth drivers tied to defence budgets. |
| Monitor news and financial results | Regularly review Lockheed Martin’s quarterly earnings and major contract announcements, as these events often trigger significant share price movements. |
| Use risk management tools | Utilise stop-loss and take-profit orders on your platform to manage potential volatility, while keeping an eye on NZD/USD movements that impact your ultimate return. |
| Sell at the right time | Consider selling part or all of your position if Lockheed Martin’s share price reaches key analyst targets or if there is a substantial change in US defence policy or company outlook. |
The latest news about Lockheed Martin
Lockheed Martin's stock is showing strong technical buy signals across all major moving averages and technical indicators. Over the last week, the stock has exhibited upward momentum, with its current price at $473.69 USD representing a modest 0.79% intraday increase. All relevant technical indicators—RSI at 57.44, a positive MACD, and all moving averages from 5 to 200 days—signal a "Strong Buy," reflecting robust investor sentiment and supporting a positive short- to medium-term outlook, especially significant for NZ-based institutional investors seeking defensively-oriented US exposure.
The company has secured substantial new contracts from the US Department of Defense in May 2025, boosting future revenue visibility. Lockheed Martin obtained a $509.8 million contract modification from the US Air Force and a separate $214.36 million contract with the US Army, reinforcing its leading position within the defense sector. These significant contract wins not only expand Lockheed’s order backlog, now at a record $176.0 billion, but also drive optimism for continued revenue growth and stable cash flow—critical factors for fund managers in New Zealand analyzing international defense equities for portfolio diversification.
Analyst consensus remains bullish, with upward price targets and a prevailing “Buy/Overweight” recommendation. As of this week, 26-29 analysts currently cover the stock with a consensus price target of $524.23 USD, representing approximately 10.7% upside from current levels. The average dividend yield stands at 2.81%, attractive for NZ investors who value stable income from global blue chips, and Lockheed’s reliable capital return policies (dividends and buybacks) further enhance its appeal in New Zealand’s income-focused investment landscape.
Lockheed Martin’s strong fundamentals are underpinned by a diverse, advanced technology portfolio and dominant US defense market share. Seventy-five percent of the firm’s revenues are sourced from the US Department of Defense, but its activities span aeronautics, missiles, space, and rotary systems—sectors all experiencing robust demand. Its proven delivery track record, technological leadership (highlighted by 110 F-35 aircraft delivered in 2024), and continuing expansion in Europe mean that NZ market participants benefit from exposure to a secure, globally diversified leader in the rapidly growing defense sector.
No direct Lockheed Martin operations or facilities are currently based in New Zealand, but the company’s technologies, particularly via the F-35 and space systems, remain strategically relevant to local defense discussions. While there is no manufacturing or employment footprint in NZ, Lockheed Martin’s platforms and systems remain part of defence and security debates regionally, and the company is a critical supplier to Pacific ally Australia. For New Zealand investors and institutions with mandates for global security, Lockheed Martin presents ongoing relevance as a US defense market proxy and a strategic holding amidst heightened Asia-Pacific geopolitical considerations.
FAQ
What is the latest dividend for Lockheed Martin stock?
Lockheed Martin currently pays a quarterly dividend of $3.30 USD per share. The latest payment was in May 2025, offering an annualised dividend of $13.20 USD. This represents a strong yield relative to the sector, supported by a solid track record of regular growth and a shareholder-friendly distribution policy. The company consistently returns significant cash to shareholders through both dividends and share buybacks.
What is the forecast for Lockheed Martin stock in 2025, 2026, and 2027?
Based on the latest price of $473.69 USD, the projected values are $615.80 USD for end of 2025, $710.54 USD for end of 2026, and $947.38 USD for end of 2027. Lockheed Martin benefits from robust defence sector momentum, a record order backlog, and strong government contracts, underpinning its positive outlook for the coming years.
Should I sell my Lockheed Martin shares?
Holding onto Lockheed Martin shares may be appropriate, given its stable valuation, resilient business model, and leading position in the global defence industry. The company’s consistent dividend, record-high order book, and long-term contracts provide visibility and potential for steady returns. The current environment and fundamentals suggest Lockheed Martin is well-positioned for future growth, which can benefit long-term investors.
How are Lockheed Martin dividends and capital gains taxed for NZ investors?
Lockheed Martin is a US-listed foreign stock and does not qualify for New Zealand’s local tax-sheltered investment schemes, such as PIE funds. Dividends are generally subject to a US withholding tax (typically 15% for NZ residents under the tax treaty) and must also be reported as overseas income in your NZ tax return. Capital gains may be taxed under NZ’s Fair Dividend Rate (FDR) regime if your total foreign shareholdings exceed NZ$50,000.
What is the latest dividend for Lockheed Martin stock?
Lockheed Martin currently pays a quarterly dividend of $3.30 USD per share. The latest payment was in May 2025, offering an annualised dividend of $13.20 USD. This represents a strong yield relative to the sector, supported by a solid track record of regular growth and a shareholder-friendly distribution policy. The company consistently returns significant cash to shareholders through both dividends and share buybacks.
What is the forecast for Lockheed Martin stock in 2025, 2026, and 2027?
Based on the latest price of $473.69 USD, the projected values are $615.80 USD for end of 2025, $710.54 USD for end of 2026, and $947.38 USD for end of 2027. Lockheed Martin benefits from robust defence sector momentum, a record order backlog, and strong government contracts, underpinning its positive outlook for the coming years.
Should I sell my Lockheed Martin shares?
Holding onto Lockheed Martin shares may be appropriate, given its stable valuation, resilient business model, and leading position in the global defence industry. The company’s consistent dividend, record-high order book, and long-term contracts provide visibility and potential for steady returns. The current environment and fundamentals suggest Lockheed Martin is well-positioned for future growth, which can benefit long-term investors.
How are Lockheed Martin dividends and capital gains taxed for NZ investors?
Lockheed Martin is a US-listed foreign stock and does not qualify for New Zealand’s local tax-sheltered investment schemes, such as PIE funds. Dividends are generally subject to a US withholding tax (typically 15% for NZ residents under the tax treaty) and must also be reported as overseas income in your NZ tax return. Capital gains may be taxed under NZ’s Fair Dividend Rate (FDR) regime if your total foreign shareholdings exceed NZ$50,000.
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