Should You Buy, Sell, or Hold LMT Stock at $460?

Considering the current information and market analysis, here is a detailed evaluation of whether to buy, sell, or hold LMT stock at $460:

Financial Performance and Projections

  1. Earnings and Revenue: Lockheed Martin's Q4 earnings beat estimates, although revenues declined year-over-year. For 2025, the company projects net sales between $73.75 billion and $74.75 billion, with an anticipated improvement in business segment performance. The earnings per share (EPS) for 2025 are expected to be in the range of $27.00 to $27.30.
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  1. Dividends: Lockheed Martin has declared a massive $3.30 dividend for the first quarter of 2025, which is a significant reward for shareholders.
  2. Analyst Ratings and Price Targets: The consensus recommendation for Lockheed Martin is "Buy". The average price target for LMT stock in 2025 is $515.08, with forecasts ranging from a low of $416.00 to a high of $685.00. The stock is currently trading at a 14% discount to its fair value of $530.00.

Market and Stock Performance

  1. Stock Price: As of January 29, 2025, LMT stock is trading at $457.45. The stock has been in an uptrend since 2000, indicating a long-term positive performance trend.
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  1. Market Sentiment: Despite a sharp decline in net profit for the fourth quarter of 2024, analysts remain optimistic about Lockheed Martin's potential to outperform its industry in 2025. The stock has exceeded market returns, which suggests strong investor confidence.

Recommendation

Given the above factors:
  • Buy: The stock is currently trading at a discount to its fair value, and the consensus is to buy. The projected earnings and sales growth for 2025 support a positive outlook. Additionally, the significant dividend payout is a strong incentive for investors.
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  • Hold: If you already hold the stock, it might be worth holding onto it given the positive long-term trend and the upcoming dividend payment. The stock is expected to appreciate further, making it a good candidate for holding.
  • Sell: There are no strong indicators suggesting a sell, especially with the current discount to fair value and the positive analyst ratings. However, if you have specific concerns about the defense industry or geopolitical risks, it might be worth reviewing your portfolio strategy.
In summary, based on the current financial performance, market sentiment, and analyst recommendations, the recommendation would be to Buy LMT stock at $460. If you already own the stock, it would be advisable to Hold it given the positive long-term outlook and upcoming dividend.