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3 Defense Stocks to Monitor as Trump Settles In

Many defense stocks are off their record highs from the fall

Digital Content Manager
Jan 23, 2025 at 2:57 PM
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President Donald Trump's inauguration brought several industries into focus, including crypto, semiconductor, and nuclear energy names. Defense stocks are also drawing attention under the new administration, so let's check in with sector heavyweights Lockheed Martin Corp (NYSE:LMT), RTX Corp (NYSE:RTX), and General Dynamics Corp (NYSE:GD).

Key Level to Watch for Lockheed as Earnings Loom

In the last 12 months, Lockheed Martin stock has amassed a more than 14% lead. However, the shares have taken a nearly 20% haircut since their Oct. 21 record high of $618.95. LMT was last seen trading at $496.22, the $500 level could be a pivot point going forward. 

The company made headlines earlier this week after securing a $270 million contract with the Air Force to integrate infrared sensors into their F-22 Raptors. Next week, Lockheed will be in the news once more, to report fourth-quarter earnings before the open on Wednesday, Jan. 28. Back in October, LMT gapped lower by 6.1% after its quarterly report.

RTX an Upgrade Target

Last seen up 1.5% to trade at $126.19, RTX is a chip shot from its Oct. 22 record high of $128.70. The shares boast a 41% year-over-year lead and are now on track for their fourth win in the last five sessions. The security has been on a steady climb since bouncing off long-term support at $142 and their 200-day moving average.

RTX was upgraded to "buy" from "neutral" at Citigroup earlier this week, with the analyst in coverage also hiking its price targe to $154 from $132. There's room for more upgrades to the stock, considering 12 of 23 in coverage maintain "hold" ratings and the consensus 12-month price target o f$133.13 is only a 5.4% premium to its current perch.

GD Testing Bearish Trendline

Similar to Lockheed, General Dynamics stock is 15.6% off its Nov. 13 record highs of $316.90. Last seen trading at $267.32, the equity is eyeing a third loss in the last four days with pressure emerging at its declining 50-day moving average.

 

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