10 Best Large Cap Defense Stocks to Buy Now

3. Lockheed Martin Corporation (NYSE:LMT)

Market Cap: $99.61 billion

Number of Hedge Fund Holders: 58

Lockheed Martin Corporation (NYSE:LMT) is one of the largest defense contractors in the world. The company specializes in the research, design, and development of advanced technology systems, products, and services. It is among the best large cap stocks to buy.

Lockheed Martin Corporation (NYSE:LMT) is famed for producing some of the most notable military aircraft in history, including the F-35 fifth-generation fighter jet. The company also plays a vital role in delivering advanced autonomous solutions to the U.S. military and partners with the government to deliver breakthrough technologies aimed at further discovering space.

During its Q4 2024 earnings call on January 28, Lockheed Martin Corporation (NYSE:LMT) reported net sales of $18.6 billion for the quarter, down from $18.9 billion during the same period last year. It posted a net income of $527 million, representing a 71% year-over-year slide, driven by heavy losses associated with certain classified programs.

Lockheed Martin Corporation (NYSE:LMT)’s share price has fallen by 16% since the earnings call in which the company also shared a cautious profit outlook for fiscal 2025, amid a delay in the rollout of upgrades for the F-35. Moreover, while arms manufacturers were expected to get a boost under the Trump administration, the formation of DOGE has soured investor sentiment in defense stocks.

Despite a challenging environment, most Wall Street analysts remain bullish on Lockheed Martin Corporation (NYSE:LMT) with a consensus Buy rating and an average share price upside potential of 31% – the latter hinting at a recovery in the share price once the headwinds are over. The company remains a partner of choice for most American allies amid the worsening security situation in different parts of the world.