President Donald Trump is advocating for a $1.5 trillion defense budget in 2027, up from the proposed $1 trillion. This news has boosted defense stocks like Lockheed Martin (LMT), with the stock up nearly 7% in the last five days.

Lockheed Martin is the largest defense contractor globally, based in Maryland. They produce military aircraft, missile systems, and operate a space systems division. With a market cap of $127 billion, LMT stock has risen almost 16% in the past year.

Despite a challenging second quarter in 2025, Lockheed Martin rebounded and had a strong Q3. The company reported revenue of $18.6 billion, beating estimates, and a backlog of $179 billion. They also increased production capacity due to high demand.

Lockheed Martin updated its full-year guidance, raising revenue projections and EPS ranges. Analysts have a consensus “Moderate Buy” rating on LMT stock. Trump’s push to boost defense spending in 2027 is expected to impact stock performance positively.

For investors interested in defense stocks, Lockheed Martin presents an attractive option. However, potential concerns include the government’s stance on reducing stock buybacks for underperforming companies, which could affect LMT stock moving forward.

Read more at Yahoo Finance: Trump Just Juiced the Bull Case for Lockheed Martin to $1.5 Trillion. Does That Make LMT Stock a Buy Here?