LMT Stock Surges 17% With A 7-day Winning Spree On Truist Upgrade To $605
Lockheed Martin (LMT) – a defense contractor providing aerospace, missile, and space systems. – hit 7-day winning streak, with cumulative gains over this period amounting to a 17%. The company market cap has surged by about $20 Bil over the last 7 days, and currently stands at $135 Bil.
The stock has YTD (year-to-date) return of 20.4% compared to 1.4% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Rally?
[1] Proposed $1.5T US Defense Budget
- Why TDG, GD Could Outperform Lockheed Martin Stock
- Stronger Bet Than Lockheed Martin Stock: GD Delivers More
- Can Lockheed Martin Stock Recover If Markets Fall?
- GD Tops Lockheed Martin Stock on Price & Potential
- TDG, GD Look Smarter Buy Than Lockheed Martin Stock
- How Will Lockheed Martin Stock React To Its Upcoming Earnings?
- Announced Plans for FY2027
- Jumpstarted 7-day Winning Streak
- Impact: Sector-Wide Stock Rally, Significant Premarket Surge
[2] Truist Securities Upgrade & PT Hike
- Price Target Raised to $605
- Cited Compelling Risk/Reward Profile
- Impact: Upgrade to Buy from Hold, Stock Reached 52-Week High
Opportunity or Trap?
Below is our take on valuation.
There are a few things to fear in LMT stock given its overall Moderate operating performance and financial condition. But keeping in mind its High valuation, we think that the stock is Unattractive (For details, see Buy or Sell LMT).
But here is the real interesting point.
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Returns vs S&P 500
The following table summarizes the return for LMT stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | LMT | S&P 500 |
|---|---|---|
| 1D | 0.8% | -0.1% |
| 7D (Current Streak) | 17.2% | 0.3% |
| 1M (21D) | 22.1% | 2.1% |
| 3M (63D) | 19.0% | 4.7% |
| YTD 2026 | 20.4% | 1.4% |
| 2025 | 2.5% | 16.4% |
| 2024 | 10.0% | 23.3% |
| 2023 | -4.3% | 24.2% |
However, big gains can follow sharp reversals – but how has LMT behaved after prior drops? See LMT Dip Buyer Analysis to learn more.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 102 S&P constituents with 3 days or more of consecutive gains and 49 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 38 | 16 |
| 4D | 17 | 11 |
| 5D | 22 | 12 |
| 6D | 0 | 5 |
| 7D or more | 25 | 5 |
| Total >=3 D | 102 | 49 |
Key Financials for Lockheed Martin (LMT)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $67.6 Bil | $71.0 Bil |
| Operating Income | $8.5 Bil | $7.0 Bil |
| Net Income | $6.9 Bil | $5.3 Bil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $18.2 Bil | $18.6 Bil |
| Operating Income | $649.0 Mil | $2.3 Bil |
| Net Income | $342.0 Mil | $1.6 Bil |
While LMT stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.