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On Wednesday, Truist Securities maintained a strong position on Lockheed Martin (NYSE:LMT) shares, with analyst Michael Ciarmoli reiterating a Buy rating and a $579.00 price target. The defense contractor, currently trading at $461.07 with a market capitalization of $108.4 billion, delivered strong performance in the first quarter of 2025, exceeding expectations and leading management to confirm their outlook for the year. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value metrics. Despite the setback from not securing the Next (LON:NXT) Generation Air Dominance (NGAD) program, management expressed confidence in achieving the higher end of Lockheed Martin’s multi-year growth framework. As a prominent player in the Aerospace & Defense industry, the company maintains a healthy dividend yield of 2.86% and has raised its dividend for 22 consecutive years, as noted by InvestingPro.
Lockheed Martin’s management highlighted the potential of NGAD technology to enhance the capabilities of the F-35 and F-22 fighter jets, suggesting that it could deliver 80% of the capability at half the cost. This proposition was seen as particularly persuasive and is expected to resonate well within the industry. The company’s backlog, which is the total value of orders received but not yet fulfilled, is anticipated to increase throughout 2025, indicating a robust book-to-bill (B2B) ratio for the remaining months of the year.
Truist’s endorsement comes after Lockheed Martin’s recent quarterly results, which not only surpassed market expectations but also demonstrated the company’s resilience and strategic adaptability. The reaffirmed financial guidance and the potential for backlog growth are seen as positive indicators for the company’s future performance. According to Truist, these factors should alleviate any concerns regarding Lockheed Martin’s stock, which may have been affected by the NGAD program loss. The analyst’s comments suggest that the company is well-positioned to continue its growth trajectory and maintain a strong market presence. With revenue of $71 billion and a P/E ratio of 19.94, investors seeking deeper insights can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Lockheed Martin reported robust financial results for the first quarter of 2025, with earnings per share (EPS) of $7.28, surpassing analysts’ forecast of $6.35. The company’s revenue also exceeded expectations, reaching $18 billion compared to the projected $17.78 billion. Lockheed Martin maintained its full-year guidance of mid-single-digit sales growth, reflecting confidence in its future performance. Bernstein analysts reaffirmed their Market Perform rating and $533.00 price target for the company, noting the strong contributions across its various segments. The defense contractor returned $1.5 billion to shareholders through dividends and share repurchases during the quarter. Additionally, Lockheed Martin confirmed its financial outlook for 2025, providing a steady vision for its future performance. In a corporate update, the company announced that Chief Financial Officer Kenneth R. Possenriede would be departing to explore new opportunities.
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