Lockheed Martin stock (NYSE:LMT) is at a pivotal area that could lead to a nice breakout over the next weeks.

Lockheed Martin

Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 114,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

As a global security, innovation, and aerospace company, the majority of Lockheed Martin’s business is with the U.S. Department of Defense and U.S. federal government agencies. In addition, Sikorsky (a Lockheed Martin Company) provides military and rotary-wing aircraft to all five branches of the U.S. armed forces along with military services and commercial operators in 40 nations. The remaining portion of Lockheed Martin’s business is comprised of international government and commercial sales of products, services and platforms. 

Technicals

Lockheed Martin stock reached a high of $442 as the pandemic set in that lowered the market in February 2020. Since then, the price has tested the $400 level several times. The price did break out in May 2020, but quickly fell back below.

As the price arrives at $400 once again, will this be the time that it breaks through? If so, what prices could we see. One target would be the previous highs of $440+.

Chart provided by TradingView

Global concerns

The current situation between Ukraine and Russia is fuelling the current price move. Although the US are not involved in the tensions between the two, there will be more demand for some extra security if the situations worsens in Ukraine.

Russia President Vladimir Putin has disregarded an invasion but troops look to be making serious preparations for their next move.

Markets

The markets will expect to have some downside if an invasion does take place. The uncertainty of who may get involved will see more selling until things are understood. One hedge against this is Lockheed Martin. This catalyst could be the one needed for the price to make a strong move as technicals line up too.

We think LMT provides some good diversification to your portfolio as many popular names, such as the tech industry, still face potential downside.

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