Lockheed Martin shares have risen nearly 15% since last week's third-quarter results and are up 29% year to date, versus a 12% gain for the S&P 500. The company reported a record backlog of $292 billion, up 63% over the past four quarters from $179 billion, and raised its 2026 free cash flow expectation from a midpoint of $6.65 billion to $7.9 billion. Missiles and Fire Control (MFC) grew sales 24% and contributed nearly 29% of operating profit despite under 22% of revenue, while a seven-year PAC-3 contract is worth $58.6 billion. The stock trades at nearly 23 times trailing P/E versus 18 times for Northrop Grumman, and the author notes the market already prices in much of the expected growth. The author views the company as a growth story for long-term exposure to the defense sector and suggests watching for sustained sales growth that drives higher profit margins.
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- Why Lockheed Martin May Be an Underrated Stock to Buy Right Now
The article argues that Lockheed Martin (LMT) is an underrated stock, having risen about 15% this year while still offering good value. In 2022, when the market fell, its shares rose over 40% including dividends, while the S&P 500 posted a total return of negative 18%, helped by its close ties to the U.S. government and strong defense spending. In the quarter ended June 28, revenue reached $20.1 billion, up 11% year over year. The stock trades at a forward P/E of about 16, below the S&P 500 average of more than 19, and its dividend yields 2.6% versus roughly 1% for the index. Lockheed has raised its dividend for 24 consecutive years.
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The article argues that Lockheed Martin (LMT) can withstand market volatility, with its stock up about 15% this year while still offering good value. In 2022, when the market fell, LMT’s total return including dividends was over 40%, compared with a negative 18% for the S&P 500, helped by its close ties to the U.S. government and strong defense spending. In the quarter ended June 28, revenue reached $20.1 billion, up 11% year over year. The stock trades at a forward P/E of about 16, below the S&P 500’s more than 19, and its dividend yields 2.6% versus the index’s roughly 1%. The company has raised its dividend for 24 consecutive years, which the article cites as a reason to hold the stock long term.
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Lockheed Martin reported third-quarter results on October 22, with sales up 11% to $20.7 billion and earnings per share of $7.97, nearly $0.50 above analysts' expectations. The company raised its full-year outlook, now expecting sales above $80 billion and free cash flow of $7.8 billion to $8 billion, and increased its dividend for a 24th consecutive year. Backlog grew 27% to $292 billion, including multiyear deals for PAC-3 interceptors and 850 F-35 jets. The author argues the stock, though up more than 20% year to date, remains a solid choice for long-term investors, citing its backlog, guidance and steadily growing dividend, which yields about 2.5%.
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Lockheed Martin shares rose 6.96% on Thursday after the company said its contract backlog grew to $292 billion. Third-quarter sales climbed 11% year over year to $20.7 billion, and net earnings rose 14% to $1.8 billion, or $7.97 per share, above the $7.52 analysts had projected. Operating cash flow was $3.4 billion and free cash flow was $3 billion, and the shares yield about 2.4%. For 2026, Lockheed expects full-year sales of roughly $81 billion and EPS of $30.35 to $30.75, and it also announced a 10-year deal with the Defense Department to expand F-35 production.
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Lockheed Martin shares rose 9% to $602.75 on Thursday after third-quarter results beat estimates and the company raised its 2026 outlook, supported by a record backlog of $292 billion. Sales reached $20.7 billion, up 11%, with earnings of $7.97 per share and free cash flow of $3.0 billion, while Missiles and Fire Control revenue jumped 24% on higher PAC-3 and THAAD production. The backlog includes roughly $52.5 billion tied to a multi-year PAC-3 interceptor award, and a 10-year framework with the U.S. Department of War covers 850 F-35 aircraft, though it is not yet a finalized contract. RTX rose 2% to $195.54 and Northrop Grumman gained 3% to $553.29, while the aerospace and defense ETF edged up 0.21% as the S&P 500 ETF fell 0.82%. The article notes that the sector's gains reflected broader interest rather than company-specific news from peers, and that defense stocks remain sensitive to budget cycles and contract timing.
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