Overview Summary
Lockheed Martin (
LMT), one of the largest defense contractors globally, is entering a critical inflection point, both technically and geopolitically. With rising global conflict risk and structural shifts in defense spending, Green Zone Capital is re-accumulating long-term positions across the defense sector, particularly in LMT.
Recent geopolitical escalations, such as the ongoing Russia–Ukraine war, tensions between Israel and Iran, and broader global instability sparking WW3 discussions, are fueling a sustained rise in defense budgets. As a primary supplier to the U.S. Department of Defense and allied nations, LMT is uniquely positioned to benefit from this potential multi-year war cycle.
Technical Setup
LMT has traded in a clearly defined long-term rising channel for years, and it recently pulled back to the lower bounds of this channel near $450, a historically strong support level that has acted as a major accumulation zone since early 2023.
Key Technical Highlights:
This bounce offers a strong risk-reward setup, especially for long-term investors seeking stability, dividends, and exposure to defense-driven macro trends.
Macro Tailwinds for LMT
Green Zone Capital Outlook
We believe Lockheed Martin is undervalued at current levels given the asymmetric risk profile of today’s geopolitical landscape. With defense spending likely to remain elevated through 2025–2028 and potential for prolonged global military operations, LMT offers long-term exposure to a defensive compounder with upside momentum.
This position is now part of Green Zone Capital’s defense and industrial equities allocation, and we will continue monitoring global macro catalysts and trend development. Our current outlook targets a move back toward $600+, supported by both fundamental strength and long-term technical structure.
Lockheed Martin (
LMT), one of the largest defense contractors globally, is entering a critical inflection point, both technically and geopolitically. With rising global conflict risk and structural shifts in defense spending, Green Zone Capital is re-accumulating long-term positions across the defense sector, particularly in LMT.Recent geopolitical escalations, such as the ongoing Russia–Ukraine war, tensions between Israel and Iran, and broader global instability sparking WW3 discussions, are fueling a sustained rise in defense budgets. As a primary supplier to the U.S. Department of Defense and allied nations, LMT is uniquely positioned to benefit from this potential multi-year war cycle.
Technical Setup
LMT has traded in a clearly defined long-term rising channel for years, and it recently pulled back to the lower bounds of this channel near $450, a historically strong support level that has acted as a major accumulation zone since early 2023.
Key Technical Highlights:
- Major pullback from $600 highs in late 2024
- Established support zone $450 confirmed with multiple rejections
- Breakout from recent consolidation structure signals momentum shift
- Targeting $600–$620, the upper range of the channel, which aligns with prior highs
This bounce offers a strong risk-reward setup, especially for long-term investors seeking stability, dividends, and exposure to defense-driven macro trends.
Macro Tailwinds for LMT
- Defense Supercycle: Global conflicts are shifting defense budgets upward, with NATO allies pushing toward the 2% GDP defense spending threshold.
- Product Dominance: Flagship programs like the F-35, THAAD missile systems, and space assets remain top priorities for governments worldwide.
- Reliable Cash Flow & Dividends: LMT generates consistent free cash flow and rewards long-term shareholders with increasing dividends.
- Increased Demand for Aerospace, Satellites, and ISR systems as modern warfare requires more data, AI-powered decision support, and space-based command infrastructure.
Green Zone Capital Outlook
We believe Lockheed Martin is undervalued at current levels given the asymmetric risk profile of today’s geopolitical landscape. With defense spending likely to remain elevated through 2025–2028 and potential for prolonged global military operations, LMT offers long-term exposure to a defensive compounder with upside momentum.
This position is now part of Green Zone Capital’s defense and industrial equities allocation, and we will continue monitoring global macro catalysts and trend development. Our current outlook targets a move back toward $600+, supported by both fundamental strength and long-term technical structure.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.