Will Lockheed Martin (LMT) Shares Rebound?

Matrix Asset Advisors, an asset management company, released its Q3 2025 investor letter. A copy of the letter can be downloaded here. The stock market continued its recovery from the April lows, gaining +8.12% in the third quarter and +14.83% YTD. The Matrix Large Cap Value strategy delivered a strong performance in the third quarter, which modestly outperformed the S&P 500® gain and was significantly ahead of the Russell 1000 Value® Index. Following a strong first half of the year, the Matrix Dividend Income (MDI) portfolio delivered another strong quarter. While this quarter's performance lagged behind the Russell 1000 Value® Index and the S&P 500 over the past three months, the results for the nine months ending September 30 were robust, showing gains in the low teens. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Matrix Asset Advisors highlighted stocks such as Lockheed Martin Corporation (NYSE:LMT). Based in Bethesda, Maryland, Lockheed Martin Corporation (NYSE:LMT) is an aerospace and defense company. The one-month return of Lockheed Martin Corporation (NYSE:LMT) was -3.53%, and its shares lost 13.64% of their value over the last 52 weeks. On November 20, 2025, Lockheed Martin Corporation (NYSE:LMT) stock closed at $468.26 per share, with a market capitalization of $109.322 billion.

Matrix Asset Advisors stated the following regarding Lockheed Martin Corporation (NYSE:LMT) in its third quarter 2025 investor letter:

"Lockheed Martin Corporation (NYSE:LMT) is the largest U.S. defense contractor, supplying advanced military systems to the U.S. Government and allies worldwide. Prior to starting our position, LMT’s stock had underperformed its peer group of defense contractors by a wide margin in 2025 for several reasons. It lost out to Boeing for the next generation of fighter jets and announced an unexpected charge of $1.6 billion on its Aeronautics and Canadian helicopter programs. These charges are a black eye for the company, but we believe LMT’s strong defense programs will allow the shares to rebound when investors gain confidence that the charges are sufficient to address the cost overruns. The company gave investors some reassurance on that score when it recently reiterated its full-year earnings guidance. LMT has a long history of dividend increases and was yielding 3.1% at the time of our original purchase."

Lockheed Martin Corporation (NYSE:LMT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 73 hedge fund portfolios held Lockheed Martin Corporation (NYSE:LMT) at the end of the second quarter, up from 68 in the previous quarter.  While we acknowledge the potential of Lockheed Martin Corporation (NYSE:LMT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Lockheed Martin Corporation (NYSE:LMT) and shared the list of top defense stock recommendations according to ChatGPT. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.