Lockheed Martin is a top defense stock with strong growth potential amid global tensions.

From Yahoo Finance: 2025-06-25 11:02:00

In a world of geopolitical instability, Lockheed Martin stands out as a top defense stock, providing strategic relevance and growth potential. With a $107.8 billion valuation, the company operates in four primary business segments, showing strength in the face of rising global tensions. Sales are up, generating investor interest.

Lockheed’s MFC segment is driving growth, showing a 13% increase in sales and a 50% increase in operating profit in Q1. International demand is strong, with countries like Singapore increasing F-35 commitments. The company emphasizes shareholder-friendly policies, steady dividend yields, and a focus on innovation and growth.

Despite challenges like Chinese export controls on rare earth elements, Lockheed remains resilient. The company’s strong financial outlook, with solid sales growth and free cash flow, positions it well for the future. Wall Street analysts rate LMT stock as a “Moderate Buy,” with a potential 14.1% rebound and 45.6% rally over the next 12 months.

Lockheed Martin’s momentum continues into 2025, fueled by its robust missile portfolio and long-term sustainment opportunities. As a defensive stock in a non-cyclical sector, the company remains an attractive investment amid global tensions. Defense spending is steady, making LMT a reliable choice for stability and growth in uncertain times.

Read more: 1 Defense Stock That Could Benefit in Times of Global Tension