Goldman Sachs Defense Stocks: Top 12 Stock Picks

3. Lockheed Martin Corporation (NYSE:LMT)

Stake Value as of Q4 2024: $531,892,801

Lockheed Martin Corporation (NYSE:LMT) is one of the largest defense contractors in the world. It specializes in the research, design, and development of advanced technology systems, products, and services.

The stock is down 25% over the past six months amid heavy losses in certain classified programs, a delay in the rollout of upgrades for the F-35, and, more recently, losing out to Boeing on the F-47 program. Industry experts believe the company is also facing competition from companies like Palantir and Anduril, offering high-quality software-based defense technologies that are cheaper, unmanned, and autonomous.

While many analysts have lowered the price targets for Lockheed Martin Corporation (NYSE:LMT), the stock still has a consensus Buy rating, with analysts having faith in the company as it continues to be a major defense contractor for the DoD and a partner of choice for several American allies in their quest to bolster their national defense.

On March 31, the US Army awarded Lockheed Martin Corporation (NYSE:LMT) an IDIQ contract worth up to $4.94 billion to produce Precision Strike Missiles (PrSM), which are surface-to-surface weapons capable of engaging targets beyond 400 kilometers. In April, the company delivered the first TPY-4 radar to the US Air Force after the successful completion of early phase testing.

On April 14, Lockheed Martin Corporation (NYSE:LMT) and Bulgaria marked the arrival of the first F-16 Block 70 in the European country, which has ordered a total of 16 of these jets to protect its airspace and strengthen security cooperation across allies. The first eight jets are expected to be delivered by the end of this year.

According to Insider Monkey’s database for Q4 2024, 65 hedge funds held a stake in Lockheed Martin Corporation (NYSE:LMT), improving from 58 at the end of the third quarter. It is also among the top defense picks from the Goldman Sachs stock portfolio, with the firm having holdings valued at nearly $532 million in the company.