Lockheed Martin Is Down 22%. What History Says Now.

Lockheed Martin Corporation Just Moved Out of the Red Zone. What History Says About This 22% Drop.

Lockheed Martin Corporation (LMT) has improved its risk profile as of May 18, 2026, moving from the red zone into the yellow zone after a period of intense selling pressure. Our data shows the stock currently sits at a Drawdown Severity Score™ of 4.9, which characterizes the current pullback as "Significant." While the stock remains -21.9% below its all-time high of $676.70, this shift in the Drawdown Severity Score™ indicates a reduction in the immediate intensity of the decline compared to previous weeks.

Analyzing the 54-Day Drawdown Period

The current sell-off has lasted 54 days, placing it slightly above the historical average for this asset. According to our data, Lockheed Martin Corporation (LMT) typically experiences drawdown durations of 50 days. By exceeding this average, the current period represents a more prolonged phase of price depreciation than the typical historical retracement.

At its most severe point during this 54-day window, the stock entered the red zone, the highest risk category in our monitoring system. The move to a 4.9 severity score on May 18, 2026, marks the first time in this cycle that the stock has shown a measurable deceleration in drawdown intensity. Despite this improvement, the stock must still climb significantly from its current price of $528.31 to reach its previous peak.

Historical Context and Severity Score™ Benchmarks

To understand the current -21.9% drawdown, we must look at the full historical record of the stock. Our data shows a total of 276 historical drawdown events for Lockheed Martin Corporation (LMT). When looking at the aggregate data, the average maximum drawdown for the stock is only -3.8%. This highlights how unusual the current 21.9% decline is relative to the stock's standard behavior.

Our data indicates that the Drawdown Severity Score™ of 4.9 is a critical threshold. In the history of the stock, we have seen only 3 instances where the drawdown reached a comparable level of 50% or more. While the current drop has not reached that 50% threshold, the severity score tracks the velocity and depth of the move to provide context on how these deep pullbacks resolve.

Historical Recovery Timelines

When Lockheed Martin Corporation (LMT) enters these deeper drawdown territories, the recovery process is historically extensive. In the 3 instances where the stock experienced drops of 50% or more, the average duration of those comparable drops was 1,646 days.

We must note that this represents a small sample size of only 3 events. This limited data set means that while the historical average duration is 1,646 days for extreme drops, the current -21.9% drawdown is in a distinct middle ground between a standard -3.8% pullback and a historic 50% collapse. The current 54-day duration suggests this event is already moving past the timeline of a "normal" correction but has not yet reached the multi-year timelines seen in the stock's most severe historical cycles.

Data Scope and Analysis Limits

This analysis of Lockheed Martin Corporation (LMT) is based strictly on price action, drawdown depth, and historical duration data. Our data shows the mathematical relationship between the current price of $528.31 and the all-time high of $676.70. We do not incorporate external factors, corporate developments, or broader market conditions into this specific report.

The Drawdown Severity Score™ is a proprietary metric that measures the current state of the stock against its own 276-event history. It does not predict future price movements but provides a standardized way to view current risk. The transition from the red zone to the yellow zone as of May 18, 2026, is a data-driven observation of price stabilization, not a forecast of an immediate return to all-time highs.

Monitoring Severity Thresholds

Investors tracking Lockheed Martin Corporation (LMT) should monitor the specific levels that would trigger a change in the Drawdown Severity Score™. A move back toward the red zone would indicate a renewal of the downward trend, while a move into the green zone would require a substantial reduction in the current -21.9% drawdown.

The current price of $528.31 serves as the anchor for the yellow zone status. If the drawdown extends beyond the 54-day mark without price improvement, the duration component of our data will continue to weigh on the severity score. Conversely, a sustained move toward the $676.70 peak would systematically lower the severity score as the stock exits the "Significant" risk category.