11 Best American Defense Stocks to Buy Now

6. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 65

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 the maker of the famed F-35 fifth-generation fighter jet.

For the last several decades, Lockheed Martin Corporation (NYSE:LMT) has been the partner of choice for most American allies, with several countries looking toward the company’s weapons to bolster their national security. This is a key reason why analysts and investors are optimistic in the stock recovering from its current downturn, driven by heavy losses in certain classified programs and a delay in the rollout of upgrades for the F-35.

Here is what Ariel Focus Fund stated regarding Lockheed Martin Corporation (NYSE:LMT) in its Q4 2024 investor letter:

“Shares of leading global defense contractor Lockheed Martin Corporation (NYSE:LMT) also traded lower returning some of its third quarter gains. Although earnings were solid, investor uncertainty tied to ongoing F-35 contract negotiations and software delays overshadowed the company’s robust order backlog and return of capital to shareholders via share repurchases and dividends. In our view, LMT continues to be well positioned in the defense sector.”

Investor interest in the stock has picked up after a report in Reuters earlier in the month about Lockheed Martin Corporation (NYSE:LMT) planning to unveil a new, low-cost cruise missile priced at $150,000 with a range of 800 kilometers, as the company works to counter Chinese ambitions in the Pacific by offering affordable weaponry.

On March 7, Matthew Akers from Wells Fargo raised the stock’s price target to $476 from $468, with the revision likely stemming from a growing interest in American defense stocks from abroad.