How does Estonia defense spending affect LMT stock?

It is a signaling effect. Estonia defense spending is small on its own, but the Baltics bunker plan and wider EU commitments reinforce multi-year demand for air defense, ISR, and munitions. That can support LMT’s backlog and pricing power, though timing and award mix still drive quarterly results.

Is LMT overbought after the recent run?

Technical signals are stretched. The stock trades near its 52-week high with RSI around 70 and price near the Bollinger upper band. Strong ADX shows trend strength, but a pause or pullback toward mid-band levels would be normal. Consider scaling entries rather than chasing breakouts.

What are the key risks to the EU defense thesis?

Risks include budget delays, political shifts, slower award timing, and supply chain constraints. Peace talks or de-escalation could cool near-term orders. Currency can also affect returns for Canadian buyers. For LMT, leverage and valuation raise sensitivity to guidance, margins, and cash flow delivery.

How can Canadian investors manage currency when buying U.S. defense stocks?

You can buy U.S.-listed shares and accept USD exposure, use CAD-hedged ETFs that hold U.S. defense names, or hedge currency separately. Each path has cost and tracking trade-offs. Match the choice to your holding period, risk tolerance, and how much U.S. dollar exposure you already carry.

Global Market Insights

LMT Stock Today: February 20 — Baltics’ Bunker Plan Signals EU Defense Ramp

ByDanny Kontos February 21, 2026February 21, 2026

Estonia defense spending is back in focus after reports that the Baltic states plan hundreds of border bunkers to reinforce NATO’s eastern flank. For Canadian investors, the signal is clear: European defense budgets remain firm, which can support primes like LMT tied to air defense, ISR, and munitions. Today’s attention centers on Europe-focused programs and fortification projects that could sustain backlogs. We break down the market setup, valuation, and what this means for risk, currency, and portfolio positioning in Canada, along with events and data to watch next.