Lockheed Martin Corporation

Lockheed Martin Corporation (NYSE: LMT) is a global aerospace and defense company engaged in the research, design, development, manufacturing, integration, and sustainment of advanced technology systems, products, and services. Its operations are organized into four core business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space.

As per Kalkine’s Diversified Opportunities Report published on ‘LMT’ on Jan 08, 2026, Kalkine provided an ‘Buy’ stance on the stock at USD 496.87 based on fundamental analysis and the stock price has now moved up by ~ 17.19% since then.

Noted below are the details of support and resistance levels provided in our previous report:

Rationale:

• Visibility Supported by Record Order Coverage: The company reported a record backlog of USD 179 billion as of Q3 FY2025, equivalent to more than two and a half years of revenue visibility, providing strong confidence in future execution and margin progression.
• Margin Tailwinds from Favorable Program Mix: Segment-level performance shows year-on-year expansion in operating margins, particularly in Space (up ~110 bps YoY in Q3 FY2025) and Rotary & Mission Systems, driven by a higher share of mature and strategically significant programs.
• Positive Rate Reassessments on Long-Duration Contracts: During Q3 FY2025, net favorable profit rate adjustments of approximately USD 365 million were recorded at the consolidated level, primarily reflecting improved cost and execution assumptions on select long-term programs, notably within the Space segment.
• Strong Cash Conversion Reinforcing Economic Outcomes: Free cash flow increased to USD 3.3 billion in Q3 FY2025 from USD 2.1 billion in Q3 FY2024, supported by working capital normalization and milestone-driven collections, reinforcing confidence in the economic value embedded within ongoing contracts.
• Capital Allocation Reflecting Management Conviction: The return of USD 1.8 billion to shareholders in Q3 FY2025 through dividends and share repurchases, alongside an expanded buyback authorization, signals management’s comfort with the sustainability of current performance trends and forward-looking assumptions.

Valuation (Using Price/Earnings Multiple)

Share Price Chart

Conclusion

The company’s recent performance reflects conditions that support the recognition of notional upside, driven by a combination of strong order visibility, disciplined execution, and improving program-level economics. A record backlog provides multi-year revenue coverage, while favorable contract mix and execution progress across key segments—particularly Space and Missiles—have led to constructive reassessments of long-term cost and margin assumptions. This is further reinforced by robust cash generation in Q3 FY2025 and management’s continued capital returns, indicating confidence in the durability of underlying operating fundamentals and future contract performance.

Considering company’s record order backlog, improving program execution, and favorable reassessment of long-duration contract economics provide a strong basis for recognizing notional upside embedded in ongoing operations, a "Sell" recommendation on Lockheed Martin Corporation (NYSE: LMT) has been given at the current market price of USD 582.29 as on 16 January 2026 at 7:35 am PST.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 16 January 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.