Lockheed Martin (LMT): Evaluating Valuation After Recent Share Price Momentum

Lockheed Martin (LMT) shares have landed on investors’ radars following a slight uptick over the past week, building on strong momentum from the past three months. With the stock trading at $491.88, recent performance stands out.

See our latest analysis for Lockheed Martin.

Lockheed Martin’s recent share price momentum continues to impress, with a 16.1% gain over the past three months helping to offset a soft patch earlier in the year. While the 12-month total shareholder return is still negative, the long-term track record remains solid and recent buying suggests renewed confidence in the company’s growth prospects.

If you’re tracking opportunities in aerospace and defense, it might be the perfect time to check out what’s happening across the sector. See the full list for free.

The real question for investors is whether Lockheed Martin is now undervalued after its recent climb, or if market expectations for future growth are already reflected in the current share price. Is there more upside ahead, or is the opportunity already priced in?

Most Popular Narrative: 4.8% Undervalued

Lockheed Martin’s latest fair value estimate from widely followed market participants has climbed above its current share price, providing fresh justification for investors looking for underappreciated upside. The stage is set for a close examination of what truly drives the company’s outlook in a shifting defense landscape.

Lockheed Martin's technological leadership in areas like stealth, electronic warfare, hypersonics, and integrated air/missile defense systems is being validated by operational success and customer priorities. This supports future contract wins and an expanding addressable market, which should lift revenues and provide opportunities for higher-margin, next-generation products.

Read the complete narrative.

This valuation is not built on wishful thinking. Under the surface, ambitious growth bets and a firm squeeze on margins power the bullish case. Want the full breakdown of the narrative’s financial math and game-changing projections? There are some bold leaps in the numbers that you simply have to see for yourself.

Result: Fair Value of $516.56 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent cost overruns on legacy programs and shifting defense budget priorities could quickly challenge Lockheed Martin’s bullish outlook.

Find out about the key risks to this Lockheed Martin narrative.

Build Your Own Lockheed Martin Narrative

If you have a different perspective or want to analyze the numbers yourself, you can build your own viewpoint in just a few minutes. Do it your way

A great starting point for your Lockheed Martin research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

Looking for More Smart Investment Ideas?

Don’t let the best opportunities slip away. Now’s your chance to elevate your portfolio by acting on proven investing trends and unique stock prospects.

• Boost your dividend income by spotting reliable companies through these 22 dividend stocks with yields > 3%, which consistently reward shareholders with attractive yields.
• Get ahead of the curve in artificial intelligence by scanning these 26 AI penny stocks, where businesses are pushing boundaries in machine learning, automation, and data-driven leadership.
• Tap into hidden potential by uncovering these 840 undervalued stocks based on cash flows, offering robust fundamentals and promising upside before the rest of the market catches on.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com