Lockheed Martin Stock Declines as Investors Weigh Future Risks

Lockheed Martin Corporation (LMT) has experienced a notable decline in its stock performance, significantly underperforming against the S&P 500 Index. As of today, LMT shares are trading 14.3% below their 52-week high of $529.99, reached on November 27, 2024. Over the past three months, LMT has seen a marginal decrease, while the S&P 500 has gained 5.1% during the same period.

The aerospace and defense giant, headquartered in Bethesda, Maryland, holds a market capitalization of approximately $106 billion. This positions Lockheed Martin within the “large-cap” stock category, reflecting its substantial influence in the industry. However, the company’s stock has struggled, declining 12.9% over the past year and 6.5% in 2025. In contrast, the S&P 500 has posted returns of 13.6% over the past 52 weeks and 15.8% year-to-date.

Market Trends and Performance Analysis

Lockheed Martin’s stock price has fluctuated in relation to key moving averages. It has traded mostly below the 200-day moving average but has remained above this threshold since mid-September, albeit with some recent volatility. The stock had been above the 50-day moving average since late August but fell below it again this month, indicating a potential bearish trend.

The recent downturn in Lockheed Martin’s stock can be attributed to several factors, primarily concerns regarding program setbacks and unmet expectations. A significant issue is the delayed progress on the company’s flagship F-35 fighter-jet program. The rollout of critical upgrades has lagged, raising uncertainty about future contracts and cash flow.

Moreover, Lockheed Martin reported substantial losses on several classified aeronautics and helicopter projects. This has led to decreased investor confidence in the company’s ability to effectively manage costs and reliably execute complex fixed-price contracts.

Competitive Landscape and Analyst Insights

In the competitive landscape, Lockheed Martin’s primary competitor, Huntington Ingalls Industries, Inc. (HII), has significantly outperformed LMT. HII shares have gained 58.8% over the past year and 66.3% year-to-date, highlighting a stark contrast in market performance.

Among the 22 analysts covering Lockheed Martin stock, the consensus rating is a “Moderate Buy.” The average price target stands at $523.30, suggesting an upside potential of 15.2% from current levels.

As investors navigate the complexities surrounding Lockheed Martin’s operations, the company’s ability to address ongoing issues and capitalize on future opportunities will be crucial for its recovery and growth in the aerospace and defense sector.