Lockheed Martin Stock Dips Amid Mixed Market Signals

Lockheed Martin’s Stock Struggles Despite Strong Earnings and Record Backlog

Lockheed Martin, the US aerospace and defence giant, has faced a challenging year in the stock market. Its shares have dropped 10.6% over the past 52 weeks, lagging behind both the S&P 500 and the wider industrial sector. Yet recent financial results show signs of strength, with better-than-expected earnings and revenue growth.

Despite the downturn, the company’s market value remains substantial at $108.94 billion. Analysts are now weighing its future prospects, with mixed views on whether the stock will recover or face further pressure.

The Bethesda-based firm reported third-quarter earnings per share (EPS) of $6.95, a 2.2% rise from the same period last year. This figure also exceeded Wall Street’s forecasts. Revenue for the quarter climbed 8.8% year-over-year to $18.61 billion, again surpassing expectations.

Lockheed Martin currently holds a record backlog of $179 billion—enough to cover over two and a half years of sales. This backlog includes major contracts, such as the upcoming sale of F-35 fighter jets to Saudi Arabia, which could provide a long-term boost.

The company’s stock has seen volatility, hitting a 52-week low of $410.11 in July. Since then, it has rebounded by 15.8%. However, over the past year, its performance has still trailed the broader market.

Analyst sentiment remains divided. Out of 21 Wall Street experts covering the stock, seven recommend a 'Strong Buy', 13 suggest 'Hold', and one advises a 'Strong Sell'. The overall consensus is a 'Moderate Buy'. Morgan Stanley, which backed analyst Kristine Liwag’s recommendation in October 2021, had set a price target of $630.

Looking ahead, forecasts suggest a 1.6% dip in EPS for fiscal 2025, followed by a 6% increase in fiscal 2026. These projections reflect both near-term challenges and longer-term growth potential.

Lockheed Martin’s recent financial results highlight its resilience, with earnings and revenue beating expectations. The company’s massive backlog and upcoming defence deals provide a solid foundation for future business.

However, its stock performance remains under pressure, with mixed analyst ratings and cautious earnings forecasts for the next fiscal year. Investors will be watching closely to see whether the company can turn its financial strength into sustained market gains.