Is Wall Street Bullish or Bearish on Lockheed Martin Stock?

Bethesda, Maryland-based Lockheed Martin Corporation (LMT) is an aerospace and defense company that researches, designs, develops, manufactures, integrates, and sustains technology systems, products, and services. Valued at $101.9 billion by market cap, the company’s businesses span space, telecommunications, electronics, information and services, aeronautics, energy, and systems integration. 

Shares of this leading global security, defense, and aerospace contractor have underperformed the broader market over the past year. LMT has gained 2.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 23%. In 2025, LMT stock is down 10.2%, compared to the SPX’s 4% rise on a YTD basis. 

Narrowing the focus, LMT has also lagged behind the iShares U.S. Aerospace & Defense ETF (ITA). The exchange-traded fund has gained about 21.9% over the past year. Moreover, the ETF’s 5.2% gains on a YTD basis outshine the stock’s double-digit losses over the same time frame. 

LMT's underperformance can be attributed to steep losses from classified programs, which significantly impacted its operating margin. The company has been experiencing poor revenue growth and declining operating margins for several years leading up to the classified program charge, which are a major concern as they are cutting into profits and guidance, with the potential for further underperformance if the losses continue to grow. The company's forecast for 2025 is decent but weaker than analysts' consensus are also weighing on investor interest in LMT stock.

On Jan. 28, LMT shares closed down more than 9% after reporting its Q4 results. Its EPS came in at $2.22, down 70.7% year over year. The company’s revenue was $18.6 billion, falling short of Wall Street forecasts of $18.9 billion. LMT expects full-year adjusted EPS to be between $27 and $27.30, and expects revenue in the range of $73.8 billion to $74.8 billion.

For fiscal 2025, ending in December, analysts expect LMT’s EPS to decline 4.6% to $27.15 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 22 analysts covering LMT stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” nine “Holds,” and one “Strong Sell.”

The configuration is fairly stable over the past three months.

On Feb. 14, TD Cowen analyst Gautam Khanna maintained a “Buy” rating on LMT with a price target of $520, implying a potential upside of 19.2% from current levels.

The mean price target of $549.82 represents a 26% premium to LMT’s current price levels. The Street-high price target of $685 suggests an ambitious upside potential of 57%.