Goldman Sachs Defense Stocks: Top 10 Stocks to Buy

3. Lockheed Martin Corp. (NYSE:LMT)

Value in Goldman Sachs’ Portfolio: $546 Million

Number of Hedge Fund Holders: 73

Share Price Return Between July 1 and October 16: 7%

Lockheed Martin Corp. (NYSE:LMT) is one of the best defense stocks in Goldman Sachs’ portfolio. As part of his October 15 Q3 preview for the aerospace and defense sector, Truist Securities analyst Michael Ciarmoli raised his price for the stock from $440 to $500. But the analyst maintained a Hold rating, despite his view of an improved sentiment towards aircraft OEM production and better aftermarket demand trends.

The potential impact of the government shutdown on the upcoming guidance releases is one of the reasons for the analyst’s cautious stance. In context, Ciarmoli had downgraded the stock to a Hold from Buy in late July 2025, as the analyst had expected that one-off charges in the next few quarters might impact cash flows. The one-off or unexpected charges were attributed to “kitchen-sinking” or a clean-up by the new management.

In an earlier report on October 7, RBC analyst Kenneth Herbert also reiterated a cautious stance with a Hold rating, but raised the price target from $440 to $525. The analyst believes that the company should be able to achieve its free cash flow target for the year, supported by a $24 billion contract that it signed for 296 jets at the end of Q3.

Separately, Lockheed Martin Corp. (NYSE:LMT) also increased its share repurchase program authorization by $2 billion on October 9. With this increase, the total authorization for future repurchases now stands at $9.1 billion. Additionally, the company raised its dividend for Q4 to $3.45, up by 5% over the last quarter.

Lockheed Martin Corp. (NYSE:LMT) is a global aerospace and defense company that provides advanced technology systems, products, and services. It operates through segments including Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. It’s most well-known for the F-35 fighter jet and missile defense systems.