Like a cruise missile veering off course, shares of aerospace and defense giant Lockheed Martin (NYSE: LMT) have fizzled rather than soared in 2025. Muted profit guidance and market concerns toward the Trump administration's defense spending policies have emerged as recent headwinds for the stock,

Lockheed Martin’s technological superiority strengthens its market position. See why LMT stock is a great buy, given its favorable valuation and economic moat.

The stock's fall snapped a four-day winning streak.

Europe isn't on board with this strategy, however, and last Tuesday, European Commission President Ursula von der Leyen announced plans for an 800 billion euro ($841 billion) "REARM Europe" program. The funds will be used to bolster the militaries of Europe's 27 member countries, as well as to "massively step up their support to Ukraine."