LMT Analysis: Lockheed Martin Touches a 52-Week High as Global Rearmament Reshapes the Defense Sector — Is the Rally Priced In?
Lockheed Martin (NYSE: LMT) is trading at $658.26, within striking distance of its 52-week high of $668.25 and more than 60% above its 52-week low of $410.11. The world's largest defense contractor has been one of the standout performers in the industrials sector, lifted by a confluence of geopolitical tailwinds that would have seemed improbable just a few years ago: European nations scrambling to rearm, the U.S. ramping Middle East air assets to levels not seen since the 2003 Iraq invasion, and a global order that increasingly demands the kind of hardware Lockheed builds. Full-year 2025 revenue hit $75.1 billion, up from $71.0 billion in 2024, with free cash flow of $6.9 billion funding both a $3.1 billion dividend commitment and $3.0 billion in share buybacks. The F-35 program — the largest weapons program in history — remains the crown jewel, and reports of Germany potentially doubling its F-35 order sent the stock surging this week. But at 30.7x trailing earnings, Lockheed trades at a premium that demands scrutiny. For investors weighing whether to buy into the global defense upcycle or take profits near all-time highs, the numbers tell a nuanced story.