Here's Why Lockheed Martin Surged 31% in January
Lockheed Martin (NYSE: LMT) stock rose an astonishing 31.1% in January according to data provided by S&P Global Market Intelligence, as the company and the U.S. defense sector were bolstered by President Trump's call for a $1.5 trillion defense budget in 2027. It's a figure equivalent to more than the GDP of the Netherlands and a massive ramp from the $900 billion approved for 2026. In addition, Lockheed released a positive set of full-year earnings and guidance that contained a strategic game-changer for the company.
On one hand, the intended massive ramp in spending is extremely bullish for defense companies, and the market wasted no time in pricing it into defense stock valuations. On the other hand, the Trump administration continued its aggressive approach to rewriting the government's relationship with defense companies.
Back in April 2025, Trump issued an executive order referencing "misplaced priorities and poor management" in defense acquisition and called for a revitalization of the "defense industrial base." directed the Secretary of War to ensure future defense contracts permit the Secretary to cap executive salaries, and "prohibit stock buybacks and corporate distributions" if the contractor is underperforming and not delivering on the contract in time.
Source Fool.com
