13 Best Defense Stocks to Buy According to Billionaires

6. Lockheed Martin Corporation (NYSE:LMT)

Number of Billionaires: 13

Billionaire Holdings: $1,297,066,521

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 defense stocks to buy according to billionaires.

The company has struggled over the last few months, with its share price taking a hit after the 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. Net income also slid 71% year-over-year, due to heavy losses associated with certain classified programs.

Lockheed Martin Corporation (NYSE:LMT) shared a cautious profit outlook for fiscal 2025, amid a delay in the rollout of upgrades for the F-35. The creation of DOGE has also generally soured investor sentiment in defense stocks.

While challenges remain, Lockheed Martin Corporation (NYSE:LMT) continues to be a partner of choice for most American allies. An increasing number of countries are looking to bolster their national defense, which is likely to help the stock recover once the current headwinds are over. Here is what Ariel Focus Fund stated regarding 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.

According to a Reuters report on March 3, Lockheed Martin Corporation (NYSE:LMT) is planning to launch 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.