Valued at $110.2 billion by market cap, Lockheed Martin Corporation (LMT) is a premier American aerospace and defense company headquartered in Bethesda, Maryland. Formed in 1995, it stands as one of the world's largest defense contractors, employing approximately 110,000 people globally.

Shares of LMT have underperformed the broader market over the past year. LMT has gained marginally over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 9.8%. In 2025, LMT stock is down 3.2%, compared to the SPX’s marginal fall on a YTD basis. 

Narrowing the focus, LMT has also lagged behind the iShares U.S. Aerospace & Defense ETF (ITA). The exchange-traded fund has gained about 25.1% over the past year and a 17.5% rise this year. 

Lockheed Martin shares fell over 3% on May 14 after hovering around breakeven for most of the day, with the drop aligning with CFO Evan Scott’s remarks at a Bank of America industrial conference. Scott discussed cost pressures on a classified aerospace program, sparking investor concerns about potential additional charges, following over $500 million in related charges in 2024. He also hinted that F-35 cash inflows may shift to Q3, raising worries about missing Q2 expectations.

For fiscal 2025, ending in December, analysts expect LMT’s EPS to decline 4.3% to $27.24 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 23 analysts covering LMT stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, 11 “Holds,” and one “Strong Sell.”

The configuration is more bullish than a month ago, when it had 10 “Strong Buy” suggestions.

 On Apr. 23, UBS Group AG (UBS) raised its price target on Lockheed Martin from $481 to $499 while maintaining a “Neutral” rating. The firm cited a “solid” quarterly performance, highlighting strong margins and the company’s reaffirmed guidance as key positives.

The mean price target of $526.45 represents an 11.9% premium to LMT’s current price levels. The Street-high price target of $670 suggests an ambitious upside potential of 42.5%.