Lockheed Martin stock: prepares for windfall as Iran war continues

Lockheed Martin stock price has gone vertical since 2024 and is now hovering near its all-time high.

LMT was trading at $671 on Friday, down slightly from the all-time high of $692.

It remains about 66% from its lowest point in 2025, and this trend may continue as demand continues rising.

Lockheed Martin to benefit from the ongoing war in Iran

The LMT share price has been in a strong uptrend in the past few months, and this trend may continue in the foreseeable future as demand continues rising.

President Donald Trump has already hinted that he will ask for $1.5 trillion in defence spending this year, up from the previous $1 trillion.

Most of these funds will go to defence contractors, of which the company is the biggest player.

Even before that, the Pentagon is expected to request $50 billion from Congress to fund the ongoing war in Iran.

Most of these funds will go towards replenishing the equipment being used in the Middle East. Also, the Pentagon has requested billions of dollars for the F-35 program.

At the same time, more demand will come from the Middle East, where equipment worth billions of dollars has been destroyed in countries like Saudi Arabia, Qatar, and Kuwait.

Some of the top equipment that has been damaged are THAAD and Patriot missiles.

The most recent results showed that the company's business continued improving in the first quarter, a trend that will continue in the foreseeable future.

Its revenue jumped by 4% in Q1 to $18 billion, while its net earnings rose to $1.7 billion.

Most importantly, its backlog surged to over $173 billion, which represents about two years of sales.

Lockheed Martin’s aeronautics business made over $7 billion in sales, up from $6.8 billion in the same period in 2024, while its missiles and fire control made $3.3 billion.

This business will continue growing as the US and Israel are destroying products worth millions of dollars a day as the war continues.

The company’s rotary & missile systems revenue rose to $4.3 billion, while its operating profit soared to $521 million.

Still, Lockheed Martin faces some major challenges ahead. One of them is the rising operational costs as key commodity prices jump during the war.

The other major risk is that the company has become a bit overvalued.

Its forward price-to-earnings ratio of 22.45, higher than the sector median of 20 and its five-year average of 17.

Still, its expected growth rate will help to offset these fears.

Lockheed Martin stock price technical analysis 

The weekly timeframe chart shows that the LMT stock price has rebounded in the past few months.

This rebound happened after forming a double-bottom pattern at $40 and a neckline at $478.

A double-bottom is a common bullish reversal sign in technical analysis.

The stock has jumped above the important resistance level at 593p, its highest swing in October 2024.

This price was the upper side of the cup-and-handle, a common bullish continuation sign.

The stock has moved above the 50-week and 100-week Exponential Moving Averages (EMA).

Also, the Relative Strength Index (RSI) has remained above the overbought level.

Therefore, the long-term forecast for the LMT stock price is bullish, with the next key target being at $1,000.

However, there is also a risk that it may retreat and retest the key support at $600 and then resume the uptrend.