Assessing Lockheed Martin (LMT) Valuation After Strong Recent Share Price Momentum
Lockheed Martin stock overview
Lockheed Martin (LMT) has drawn investor interest after recent performance data showed a last close of $649.81, supported by reported annual revenue of $75.048b and net income of $5.017b.
See our latest analysis for Lockheed Martin.
Recent share price momentum has been strong, with a 30 day share price return of 11.57% and a 90 day gain of 38.77%. The 1 year total shareholder return of 54.51% sits alongside a 5 year total shareholder return of 115.14%, which may indicate building momentum rather than a short lived move.
If this defense giant has you thinking about long term infrastructure themes, it could be a good time to scan our list of 24 power grid technology and infrastructure stocks as another area to research.
With Lockheed Martin now trading near its recent high, a value score of 4, and only a small 1.2% gap to the average analyst target, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?
Most Popular Narrative: 40% Undervalued
With Lockheed Martin closing at $649.81 against a narrative fair value of $652.53, the current setup hinges on how investors view the earnings runway and pricing power implied in that gap.
Lockheed Martin continues to invest heavily in R&D and next-generation technologies, enabling it to maintain technological leadership and diversify future revenue streams, further supported by public-private partnerships (e.g., rare earth magnet supply chain), all of which should underpin sustainable earnings and cash flow growth over the long term.
Curious what earnings trajectory, margin path, and valuation multiple are baked into this story? The narrative leans on measured growth assumptions and a future profit profile that some might usually associate with higher growth sectors.
Result: Fair Value of $652.53 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there are still pressure points, including possible cost overruns on complex defense programs and uncertainty around future U.S. and allied defense budget priorities.
Find out about the key risks to this Lockheed Martin narrative.
Next Steps
If this mix of upside and pressure points leaves you on the fence, it is worth moving quickly to review the underlying data and form your own opinion, and then weigh up the 4 key rewards and 1 important warning sign to see how others are thinking about the balance of risks and rewards.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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