Why Lockheed Martin Stock Popped Again Today

• Truist Securities expert Michael Ciarmoli Lockheed Martin banal this morning.

• The analysts sees Lockheed banal gaining 12% successful 12 months.

• 10 stocks we similar amended than Lockheed Martin ›

Lockheed Martin (NYSE: LMT) banal gained for a 2nd consecutive time Friday, rising 4.2% done 11:50 a.m. ET aft Truist Securities expert Michael Ciarmoli upgraded the defence elephantine to bargain with a $605 terms target, arsenic StreetInsider.com reports.

If Lockheed banal hits that terms target, it volition mean a 12% nett implicit the adjacent 12 months -- positive a dividend output of astir 2.7%.

Lockheed Martin banal got a immense assistance yesterday aft President Trump called for expanding the U.S. defence fund to $1.5 trillion successful fiscal 2027. That's not the lone crushed wherefore Ciarmoli upgraded Lockheed stock, however.

"We are upgrading LMT to BUY," says the analyst, due to the fact that "LMT's 2025 underperformance coupled with charismatic valuation creates a compelling risk/reward illustration successful 2026."

"DOGE fears person mostly subsided," and the caller securing of a immense declaration to proviso the U.S. subject with Patriot aerial defence missiles should boost show astatine Lockheed's astir profitable missiles and occurrence power business. Longer term, "ongoing geopolitical tensions should proceed to thrust request supporting programme accumulation ramp ups."

There are galore reasons to bargain Lockheed Martin stock. But are determination immoderate reasons not to bargain Lockheed stock?

There are. And the main crushed I'd mention is the aforesaid 1 that has Truist funny successful Lockheed stock: Valuation.

Priced astatine 1.6 times trailing sales, Lockheed Martin banal costs a spot much than the 1x income valuation I usually privation to wage for a defence stock. Lockheed besides costs 28.5 times earnings, giving it a pricey 2.4x PEG ratio astatine forecast maturation rates of little than 12%.

Lockheed has a batch of things going for it close now. But astatine this price, an concern successful Lockheed could inactive spell severely wrong.

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