Why Lockheed Martin Stock Keeps Going Up

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Lockheed Martin: A Steady Climb Despite Margin Concerns

Strong defense contracts keep Lockheed Martin’s stock rising, but watch for profit margin squeeze.

Lockheed Martin’s recent price upgrades reflect solid fundamentals—mainly a decade-long bulk order for F-35 jets and booming missile sales. This steady demand supports above-average earnings growth and a decent dividend, which appeals in uncertain times. However, bulk production risks squeezing margins in their aeronautics division, so investors should temper enthusiasm. While Lockheed isn’t listed on the JSE, its performance influences USD/ZAR given the large US defense footprint and how currency swings can affect local tech stocks like Naspers and Prosus, which are sensitive to the dollar’s strength. The rand’s relative stability could be challenged if the dollar strengthens further on US defense spending and geopolitical tensions. This makes a direct SA equity play on Lockheed tricky, but forex traders might keep the USD/ZAR pair in focus. The positive momentum may stall if the margin compression proves worse than expected, so patience is key here. this is just our opinion and not financial advice