Lockheed Martin's Stock Performance Lags Behind Aerospace & Defense Peers

Lockheed Martin's stock has decreased 26.9% from its 52-week high and fallen 15.5% over the past three months, underperforming the SPDR S&P Aerospace & Defense ETF. The company's shares have declined 20.4% over the past 52 weeks and are trading below their 200-day moving average. Despite this, analysts remain moderately optimistic about Lockheed Martin's prospects, with a consensus rating of "Moderate Buy" and a mean price target of $491.45, a premium of 8.6% to the current price.

Lockheed Martin's (LMT) stock has seen a significant downturn, with a 26.9% drop from its 52-week high and a 15.5% decline over the past three months. This performance underperforms the SPDR S&P Aerospace & Defense ETF. Over the past year, the company's shares have decreased by 20.4%, trading below the 200-day moving average [1].

The recent challenges for Lockheed Martin include worsening delivery delays for its F-35 Lightning II stealth fighter. A new GAO report found that the average delivery delay in 2024 was 238 late days [2]. Additionally, the company is facing a securities class action lawsuit filed on behalf of investors who purchased shares between January 2022 and September 2025, alleging that Lockheed Martin misled investors on its financial health [3].

Despite these setbacks, analysts remain moderately optimistic about Lockheed Martin's prospects. The consensus rating is a "Moderate Buy" with a mean price target of $491.45, a premium of 8.6% to the current price [4].

Lockheed Martin's recent $9.8 billion contract to produce 1,970 PAC-3 MSE missiles for the U.S. Army through 2033, underscores its leadership in modernizing missile defense infrastructure [5]. This contract, awarded by the U.S. Army and spanning until January 31, 2033, not only secures long-term production but also aligns with broader trends of defense modernization [6].

Global defense spending hit $2.3 trillion in 2024, with missile markets projected to grow 7.43% CAGR to $114B by 2033 [7]. The Ukraine conflict has driven demand for long-range systems, boosting defense stock valuations by 12% YoY and PAC-3 MSE production to 650 units by 2027 [8].

Lockheed Martin's financial resilience and competitive edge are reinforced by its $166.5B backlog and AI/hypersonic tech investments [9]. Despite these strategic advantages, the company must address delivery delays and investor concerns to regain investor confidence and restore shareholder value.

References:
[1] https://stockanalysis.com/stocks/lmt/
[2] https://www.ainvest.com/news/lockheed-martin-9-8-billion-patriot-contract-strategic-catalyst-long-term-growth-2509/
[3] https://prnewswire.com/news-releases/lawsuits-filed-against-lockheed-martin-corporation-over-f-35-delays-and-investor-misrepresentation-301368251.html
[4] https://www.ainvest.com/news/lockheed-martin-9-8-billion-patriot-contract-strategic-catalyst-long-term-growth-2509/
[5] https://www.ainvest.com/news/lockheed-martin-9-8-billion-patriot-contract-strategic-catalyst-long-term-growth-2509/
[6] https://www.ainvest.com/news/lockheed-martin-9-8-billion-patriot-contract-strategic-catalyst-long-term-growth-2509/
[7] https://www.ainvest.com/news/lockheed-martin-9-8-billion-patriot-contract-strategic-catalyst-long-term-growth-2509/
[8] https://www.ainvest.com/news/lockheed-martin-9-8-billion-patriot-contract-strategic-catalyst-long-term-growth-2509/
[9] https://www.ainvest.com/news/lockheed-martin-9-8-billion-patriot-contract-strategic-catalyst-long-term-growth-2509/