# How Lockheed Martin (LMT) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/lmt
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on LMT alone. It places LMT (Lockheed Martin Corporation) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where LMT stands in the market, and of the alternatives worth a closer look.

Period covered: LMT's full trading record, from October 1986 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** Over the past 6 months, LMT fell 4.4% while the S&P 500 rose 9.1%. Not every peer went the same way. Over the past 6 months, GD (General Dynamics) rose 4.7% and NOC (Northrop Grumman) fell 18.0%.
- **Stock or market?:** LMT held up far better than its industry: it rose 8.4% over the past 3 months while the aerospace & defense ETF ITA (iShares U.S. Aerospace & Defense ETF) fell 10.0%. The S&P 500 rose 3.9%. Its aerospace & defense peers did not move as one over the past 3 months: CACI (CACI International) rose 34.7%, while BA (Boeing) fell 9.1%.
- **Past 1 to 3 years:** LMT has trailed the market, rising 11.3% over the past year against 15.8% for the S&P 500 and 17.9% for the Nasdaq 100. The same gap shows up over 3 years (33.8% against 89.3%). The last two calendar years both went the same way: LMT rose 2.5% in 2025, against 15.8% for the S&P 500 and 17.9% for the Nasdaq 100.
- **Long term:** LMT turned $10,000 into $30,400 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** The late-2018 sell-off took 29.4% off LMT, against 19.3% for the S&P 500. That was more than RTX (27.7%) but less than HWM (Howmet Aerospace, 30.8%). LMT fell further than the S&P 500 in two of the last three sell-offs, including the late-2018 sell-off (29.4% against 19.3%).
- **Diversification:** Against the S&P 500, LMT has a correlation of 0.05 over 5 years, less closely than 97% of stocks worth at least $300 million. Next to an index fund it is a real diversifier. LMT moves far less with the S&P 500 than it used to, with a correlation of 0.05 over the past 5 years against 0.67 in the 5 years before.
- **Better options:** Among LMT's popular alternatives, GD (General Dynamics) earned more than LMT with less volatility over the past 5 years: 12.9% a year at 20.8% volatility, against 11.1% a year at 24.2%. Looking beyond its popular alternatives, ITA (iShares U.S. Aerospace & Defense ETF, aerospace & defense) earned more than LMT with less volatility over the past 5 years: 14.6% a year at 20.4% volatility, against 11.1% a year at 24.2%.

## How much would $10,000 in LMT have grown?

This chart tracks a hypothetical $10,000 investment in LMT over the past 29 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of LMT over the same span and LMT's popular alternatives, among those that traded for the entire period.

- $10,000 invested in LMT at the end of September 1997 would have grown to $194,815 by September 2026, more than the $132,907 it would have become in SPY, an S&P 500 fund.
- Six of the eight other investments on the chart ended ahead of LMT, and HEI finished highest, at $1,347,388.

## LMT at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- LMT's deepest decline since it began trading in 1986 was 70.2%, from March 1998 to March 2000. It took 23 months from the low to climb back to its old high.
- Over 29 full calendar years, LMT's best was 2013, when it returned 68.1%, and its worst was 1999, when it lost 46.9%. It lost money in nine of those years.
- LMT is 17.9% below its all-time high.

- Type: Stock, Industrials (Aerospace & Defense)
- Trading since: October 17, 1986
- Market value: $127B
- Volatility (5 years): 24.2%; Sharpe ratio: 0.56
- Worst decline ever: −70.2%, from March 20, 1998 to March 14, 2000; back at its high by February 15, 2002

| Period | LMT total return |
| --- | --- |
| 1 month | +2.5% |
| 3 months | +8.4% |
| 6 months | −4.4% |
| year to date | +12.4% |
| 1 year | +11.3% |
| 3 years | +33.8% |
| 5 years | +69.0% |
| 10 years | +204% |

## LMT against the whole market

Where LMT ranks among every stock and fund, and what across the market has done better.

### How does LMT rank among all stocks?

This section ranks LMT on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- LMT's worst decline of the past 10 years ranks in the top 4% of the 2,187 stocks worth at least $300 million, where the top fell the least.

| Measure | LMT | Rank |
| --- | --- | --- |
| 1-year return | +11.3% | 1,538 of 3,287 (top 47%) |
| 3-year return | +33.8% | 1,788 of 3,017 (top 60%) |
| 5-year return | +69.0% | 909 of 2,893 (top 32%) |
| 10-year return | +204% | 848 of 2,202 (top 39%) |
| Volatility, 5 years | 24.2% | 274 of 2,893 (top 10%) |
| Sharpe ratio, 5 years | 0.56 | 787 of 2,893 (top 28%) |
| Worst decline, past 10 years | −36.7% | 81 of 2,187 (top 4%) |

### What has beaten LMT on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 45 stocks and 158 ETFs worth at least $500 million sit in the green region: each earned more than LMT over the past 5 years with smaller price swings. That is 6% of the 3,633 screened.
- Among those with at least half LMT's swings, DXJ has the best return for its risk: 26.6% a year at 19.1% volatility, 21% less than LMT's 24.2%, and a Sharpe ratio (return above cash per unit of volatility) of 1.34 against 0.56 for LMT.
- Among LMT's popular alternatives, GD is in the region. GD earned 12.9% a year against 11.1% a year for LMT, at 20.8% volatility, 14% less than LMT's 24.2%.

### Is there a better investment than LMT?

The table below lists investments that beat LMT over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among LMT's popular alternatives, GD earned more than LMT with less volatility over the past 5 years: 12.9% a year at 20.8% volatility, against 11.1% a year at 24.2%.
- Looking beyond its popular alternatives, ITA (aerospace & defense) earned more than LMT with less volatility over the past 5 years: 14.6% a year at 20.4% volatility, against 11.1% a year at 24.2%.
- Across the whole market, 203 of the 3,633 stocks and funds worth at least $500 million earned more than LMT with less volatility over the past 5 years, among them VOO, BRK-B and BRK-A.

The 15 strongest of 203 investments that beat LMT over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with LMT | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| LMT: Lockheed Martin Corporation (this page) |  | +11.1% | 24.2% | 0.56 | −36.7% | +204% |  |  |
| [BRK-B](https://easycompare.io/research/brk-b): Berkshire Hathaway Inc. | Insurance | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.18 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [JNJ](https://easycompare.io/research/jnj): Johnson & Johnson | Pharmaceuticals | +12.7% | 17.9% | 0.76 | −27.4% | +196% | 0.24 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [NVS](https://easycompare.io/research/nvs): Novartis AG | Pharmaceuticals | +17.1% | 20.7% | 0.87 | −26.8% | +226% | 0.34 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| SPMO: Invesco S&P 500 Momentum ETF | US Momentum Equity | +18.7% | 20.8% | 0.93 | −30.9% | +499% | -0.07 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| DFIV: Dimensional - International Value ETF | International Equity | +14.8% | 16.4% | 0.93 | −25.4% | — | 0.32 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| AVLV: Avantis U.S. Large Cap Value ETF | US Large-Cap Value | +14.0% | 16.9% | 0.86 | −19.5% | — | 0.23 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| OEF: iShares S&P 100 ETF | US Large-Cap Equity | +14.3% | 17.8% | 0.84 | −31.4% | +367% | -0.02 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| DFUS: Dimensional U.S. Equity ETF | US Total Market | +12.3% | 17.3% | 0.76 | −24.6% | — | 0.05 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [RY](https://easycompare.io/research/ry): Royal Bank of Canada | Banks | +17.3% | 18.2% | 0.97 | −40.0% | +352% | 0.11 | Higher return, lower volatility; Higher return in most periods |
| IOO: iShares Global 100 ETF | Global Equity | +15.7% | 17.2% | 0.94 | −31.4% | +361% | 0.06 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [MPLX](https://easycompare.io/research/mplx): MPLX Lp | Oil & Gas Midstream | +23.5% | 18.8% | 1.22 | −75.2% | +350% | 0.19 | Higher return, lower volatility; Higher return in most periods |
| IDMO: Invesco S&P International Developed Momentum ETF | International Equity | +13.3% | 18.2% | 0.78 | −31.3% | +229% | 0.18 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| GARP: iShares MSCI USA Quality GARP ETF | Broad Market | +17.5% | 22.5% | 0.83 | −31.4% | — | -0.06 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| SPUS: SP Funds S&P 500 Sharia Industry Exclusions ETF | Technology | +15.0% | 19.5% | 0.82 | −30.8% | — | -0.05 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| DIVI: Franklin International Core Dividend Tilt Index ETF | International | +13.4% | 15.5% | 0.89 | −27.7% | +184% | 0.27 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## LMT against its popular alternatives

The investments people most often weigh against LMT, compared period by period and year by year.

### How do LMT's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Only GD was both more rewarding and calmer than LMT over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, LMT returned 11.1% a year, less than the S&P 500's 12.7%, with higher volatility (24.2% against 17.1%).

### Has LMT consistently beaten its popular alternatives?

This section compares LMT with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Three of the 25 popular alternatives, CACI, ATI and PLTR, outperformed LMT in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- CACI outperformed LMT in every long-term period and in all but one short-term period, the most consistent record in the group.
- PH outperformed LMT over all three long-term periods but in only one of the five short-term ones, so LMT has had the better of it lately.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of LMT | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| LMT: Lockheed Martin Corporation (this page) | +11.3% | +33.8% | +69.0% | +204% |  |  | 0.56 |
| CACI: CACI International Inc | +15.4% | +85.8% | +115% | +499% | 4/5 short-term, 3/3 long-term | all-weather | 0.66 |
| ATI: ATI Inc. | +125% | +415% | +1,008% | +929% | 3/5 short-term, 3/3 long-term | consistent | 1.34 |
| [PLTR](https://easycompare.io/research/pltr): Palantir Technologies Inc. | +6.1% | +1,096% | +695% | — | 4/5 short-term, 2/3 long-term | consistent | 0.95 |
| [RTX](https://easycompare.io/research/rtx): RTX Corporation | +22.1% | +183% | +135% | +317% | 2/5 short-term, 3/3 long-term |  | 0.83 |
| [HEI](https://easycompare.io/research/hei): HEICO Corporation | −2.4% | +93.4% | +122% | +809% | 1/5 short-term, 3/3 long-term |  | 0.71 |
| [PH](https://easycompare.io/research/ph): Parker-Hannifin Corporation | +28.7% | +161% | +235% | +789% | 1/5 short-term, 3/3 long-term |  | 0.99 |
| [TDG](https://easycompare.io/research/tdg): TransDigm Group Incorporated | −12.2% | +62.5% | +114% | +543% | 1/5 short-term, 3/3 long-term |  | 0.69 |
| DRS: Leonardo DRS, Inc. | −14.2% | +82.9% | +228% | +3,294% | 0/5 short-term, 3/3 long-term |  | 0.77 |
| [HWM](https://easycompare.io/research/hwm): Howmet Aerospace Inc. | +10.2% | +391% | +594% | +1,028% | 0/5 short-term, 3/3 long-term |  | 1.36 |
| KTOS: Kratos Defense & Security Solutions, Inc. | −55.0% | +127% | +71.3% | +515% | 0/5 short-term, 3/3 long-term |  | 0.47 |
| CW: Curtiss-Wright Corporation | −11.6% | +148% | +283% | +512% | 0/5 short-term, 3/3 long-term |  | 1.08 |
| BWXT: BWX Technologies, Inc. | −35.0% | +79.8% | +145% | +289% | 0/5 short-term, 3/3 long-term |  | 0.70 |
| LDOS: Leidos Holdings, Inc. | −32.2% | +42.4% | +35.6% | +253% | 1/5 short-term, 2/3 long-term |  | 0.36 |
| [GD](https://easycompare.io/research/gd): General Dynamics Corporation | +4.0% | +55.4% | +83.3% | +184% | 1/5 short-term, 2/3 long-term |  | 0.69 |
| [GE](https://easycompare.io/research/ge): GE Aerospace | −0.4% | +261% | +366% | +139% | 1/5 short-term, 2/3 long-term |  | 1.15 |
| [LHX](https://easycompare.io/research/lhx): L3Harris Technologies, Inc. | −13.0% | +49.6% | +13.0% | +229% | 0/5 short-term, 2/3 long-term |  | 0.22 |
| MRCY: Mercury Systems, Inc. | −3.3% | +100% | +40.9% | +212% | 0/5 short-term, 2/3 long-term |  | 0.38 |
| RKLB: Rocket Lab USA, Inc. | −24.4% | +1,144% | +300% | — | 0/5 short-term, 2/3 long-term |  | 0.74 |
| AVAV: AeroVironment, Inc. | −67.7% | +0.7% | +27.1% | +426% | 0/5 short-term, 1/3 long-term |  | 0.37 |
| SAIC: Science Applications International Corporation | +37.6% | +27.6% | +60.1% | +135% | 4/5 short-term, 0/3 long-term |  | 0.46 |
| BAH: Booz Allen Hamilton Holding Corporation | −23.5% | −34.5% | +2.0% | +197% | 1/5 short-term, 0/3 long-term |  | 0.18 |
| [NOC](https://easycompare.io/research/noc): Northrop Grumman Corporation | −9.8% | +15.6% | +44.5% | +188% | 0/5 short-term, 0/3 long-term |  | 0.41 |
| HII: Huntington Ingalls Industries, Inc. | −3.2% | +32.2% | +43.2% | +110% | 0/5 short-term, 0/3 long-term |  | 0.39 |
| TXT: Textron Inc. | −6.3% | +1.9% | +4.1% | +97.9% | 0/5 short-term, 0/3 long-term |  | 0.17 |
| [BA](https://easycompare.io/research/ba): The Boeing Company | −12.2% | +5.8% | −11.9% | +52.4% | 0/5 short-term, 0/3 long-term |  | 0.12 |

### How did LMT do year by year?

This table shows each investment's total return in every full calendar year since 1997, along with where LMT ranked among its popular alternatives each year.

- LMT finished ahead of the S&P 500 in 16 of its 29 full calendar years, and behind it in each of the last three.
- Among its popular alternatives, RKLB came out ahead of LMT most often, in four of the five years both traded.
- Ranked against its popular alternatives each year, LMT finished in the top quarter in nine of 29 years and in the bottom quarter in seven. In 2025, it ranked 24 of 26.

| Year | LMT | SPY |
| --- | --- | --- |
| 2025 | +2.5% | +17.7% |
| 2024 | +10.0% | +24.9% |
| 2023 | −4.3% | +26.2% |
| 2022 | +40.5% | −18.2% |
| 2021 | +3.1% | +28.7% |
| 2020 | −6.5% | +18.3% |
| 2019 | +52.5% | +31.2% |
| 2018 | −16.4% | −4.6% |
| 2017 | +30.0% | +21.7% |
| 2016 | +18.4% | +12.0% |

## Risk and diversification

How LMT has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were LMT's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all four of LMT's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: LMT fell 70.2% from March 1998 to March 2000, while the S&P 500 rose 27.0%.
- The slowest recovery came after LMT fell 50.6% from August 2008 to March 2009; it did not regain that peak until May 2013, four years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −70.2% | March 20, 1998 | March 14, 2000 | February 15, 2002 | +27.0% | dot-com bust |
| −53.1% | August 27, 1987 | October 17, 1990 | August 3, 1992 | — |  |
| −50.6% | August 28, 2008 | March 11, 2009 | May 2, 2013 | −43.4% | 2008 financial crisis |
| −42.0% | June 27, 2002 | March 11, 2003 | February 1, 2006 | −18.3% | dot-com bust |
| −36.7% | February 11, 2020 | March 23, 2020 | February 28, 2022 | −33.1% | Covid crash |

### How did LMT do in stock market crashes?

This section measures how far LMT, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- LMT fell less than the S&P 500 in seven of the ten crashes it has traded through. The clearest case was the dot-com bust, when LMT fell 24.5% and the S&P 500 fell 47.5%.
- None of its popular alternatives fell less than LMT in most of the crashes they both traded through.

| Crash | Dates | LMT fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −24.5% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −50.5% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −1.9% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −17.3% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −8.5% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −5.2% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −29.4% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −35.9% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −16.9% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −0.8% | −3.4% |

### How closely does LMT move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, LMT captured 58% of the S&P 500's gains in rising months and 48% of its losses in falling months, with a beta of 0.52. That is a defensive profile: it gave up some of the market's upside in exchange for smaller losses.
- DRS took just 4% of the S&P 500's losses, against 48% for LMT, while still keeping 125% of its gains.
- Six of the 23 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than LMT's 1.22, led by DRS, NOC and CACI.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| LMT: Lockheed Martin Corporation (this page) | 58.0% | 48.0% | 0.52 |
| CACI: CACI International Inc | 94.0% | 62.0% | 0.79 |
| ATI: ATI Inc. | 141% | 116% | 1.37 |
| [RTX](https://easycompare.io/research/rtx): RTX Corporation | 94.0% | 91.0% | 0.89 |
| [HEI](https://easycompare.io/research/hei): HEICO Corporation | 118% | 85.0% | 1.15 |
| [PH](https://easycompare.io/research/ph): Parker-Hannifin Corporation | 141% | 126% | 1.43 |
| [TDG](https://easycompare.io/research/tdg): TransDigm Group Incorporated | 112% | 97.0% | 1.25 |
| DRS: Leonardo DRS, Inc. | 125% | 4.0% | 0.66 |
| [HWM](https://easycompare.io/research/hwm): Howmet Aerospace Inc. | 142% | 115% | 1.41 |
| KTOS: Kratos Defense & Security Solutions, Inc. | 133% | 135% | 0.98 |
| CW: Curtiss-Wright Corporation | 103% | 77.0% | 1.20 |
| BWXT: BWX Technologies, Inc. | 82.0% | 68.0% | 0.87 |
| LDOS: Leidos Holdings, Inc. | 78.0% | 73.0% | 0.73 |
| [GD](https://easycompare.io/research/gd): General Dynamics Corporation | 68.0% | 68.0% | 0.71 |
| [GE](https://easycompare.io/research/ge): GE Aerospace | 85.0% | 106% | 1.21 |
| [LHX](https://easycompare.io/research/lhx): L3Harris Technologies, Inc. | 72.0% | 65.0% | 0.70 |
| MRCY: Mercury Systems, Inc. | 84.0% | 82.0% | 0.97 |
| AVAV: AeroVironment, Inc. | 120% | 114% | 0.90 |
| SAIC: Science Applications International Corporation | 44.0% | 36.0% | 0.59 |
| BAH: Booz Allen Hamilton Holding Corporation | 65.0% | 63.0% | 0.54 |
| [NOC](https://easycompare.io/research/noc): Northrop Grumman Corporation | 49.0% | 32.0% | 0.35 |
| HII: Huntington Ingalls Industries, Inc. | 71.0% | 90.0% | 0.60 |
| TXT: Textron Inc. | 103% | 155% | 1.33 |
| [BA](https://easycompare.io/research/ba): The Boeing Company | 93.0% | 152% | 1.42 |

### What diversifies LMT?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in LMT into SPMO would have cut the portfolio's volatility by 20% over the past 5 years and raised its annual return (+11.0% for LMT alone, +14.1% for the mix).
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of LMT over the past 5 years, with correlations of 0.30 or lower, and each still earned a positive 5-year return.
- FIX made money in six of the nine calendar years in which LMT lost money.

| Investment | Correlation with LMT | 5Y return | Volatility | Sharpe | Rose in LMT's 9 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.30 | +119% | 11.1% | 1.48 | 1 of 9 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.08 | +225% | 19.1% | 1.34 | 3 of 9 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.27 | +101% | 14.5% | 1.04 | 1 of 9 |
| HDV: iShares Core High Dividend ETF | 0.46 | +83.3% | 13.0% | 1.00 | 1 of 9 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | -0.14 | +323% | 36.9% | 0.97 | 5 of 9 |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | 0.13 | +85.0% | 13.8% | 0.96 | 2 of 9 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.40 | +126% | 18.9% | 0.96 | 5 of 9 |
| SPMO: Invesco S&P 500 Momentum ETF | -0.07 | +136% | 20.8% | 0.93 | 2 of 9 |

## Common questions

### What was LMT's worst drawdown?

LMT's deepest decline since it began trading in 1986 was 70.2%, from March 1998 to March 2000. It took 23 months from the low to climb back to its old high.

### What were LMT's best and worst years?

Over 29 full calendar years, LMT's best year was 2013, when it returned 68.1%. Its worst was 1999, with a return of -46.9%.

### Is there a better investment than LMT?

Among LMT's popular alternatives, GD earned more than LMT with less volatility over the past 5 years: 12.9% a year at 20.8% volatility, against 11.1% a year at 24.2%. Looking beyond its popular alternatives, ITA (aerospace & defense) earned more than LMT with less volatility over the past 5 years: 14.6% a year at 20.4% volatility, against 11.1% a year at 24.2%.

### Is LMT more volatile than the S&P 500?

Yes. LMT's volatility over the past 5 years was 24.2%, 1.4 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, LMT's return lands within 24.2% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is LMT's Sharpe ratio?

LMT's Sharpe ratio over the past 5 years was 0.56, against 0.79 for the S&P 500, so LMT earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is LMT with the S&P 500?

Over the past 5 years, LMT's monthly returns had a correlation of 0.05 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They are close to unrelated, or move in opposite directions, so it can steady a stock portfolio. In the table, the correlation column measures each option against LMT instead: the lower it is, the more that option would diversify a LMT holding.

### What are the best alternatives to LMT?

Of the 25 popular alternatives we compared, three outperformed LMT in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: CACI, ATI and PLTR.

### Did LMT outperform the S&P 500?

LMT finished ahead of the S&P 500 (SPY) in 16 of 29 full calendar years. In 2025, it returned +2.5%, against +17.7% for the index.

### How did LMT do in stock market crashes?

LMT fell less than the S&P 500 (SPY) in seven of the ten major crashes it has traded through, and further in two. The clearest case was the dot-com bust, when LMT fell 24.5% and the S&P 500 fell 47.5%.

### What diversifies LMT?

These had a low correlation with LMT over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.30), DXJ (correlation 0.08) and EMLP (correlation 0.27); among large stocks, CAH (correlation 0.19), CLS (correlation -0.22) and FIX (correlation 0.10). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/lmt
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against LMT live: https://betterthanspy.com/?b=LMT&utm_source=easycompare&utm_medium=research