Lockheed Martin's order backlog rose to $292 billion in the third quarter from $194 billion at the start of the year, with growth concentrated in its highest-margin segment, missiles and fire control (MFC). The seven-year PAC-3 contract, worth up to $58.6 billion, was the largest contributor in the quarter, and the article notes PAC-3 is a mature technology with lower development risk. It also points to improved contract terms with the Department of Defense, including long duration, inflation escalators, cash flow neutrality and cancellation protections. Lockheed trades at 22 times earnings and 18.6 times 2026 free cash flow expectations, though execution risks remain.
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- Is Lockheed Martin a Buy After Its Latest Earnings Report?
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.
- 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.
- Why Lockheed Martin May Be an Underrated Stock to Buy Right Now
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.
- Why Lockheed Martin Stock Keeps Going Up
Lockheed Martin (LMT) shares rose another 3.3% by 12:35 p.m. ET Monday after three Wall Street analysts weighed in positively. Morgan Stanley's Kristine Liwag cites a 10-year Air Force contract to produce F-35 jets at 156 aircraft per year as reducing downside risk, and sees missile production lifting revenue in the mid-teens over the next five years; she would upgrade the stock to overweight with an $835 per-share target over the next year. Bank of America and JP Morgan kept neutral ratings but raised price targets to $620 and $665, respectively. Bank of America's Ronald Epstein worries that higher F-35 volume at likely bulk rates could squeeze margins, since aeronautics, with $30.6 billion in annual revenue, already posted operating margins below 7% last year, versus 13% for missiles. The article argues that at a price-to-free cash flow ratio below 17x, a long-term earnings growth rate near 18%, and a 2.4% dividend yield, the stock is cheap enough to be worth the risk.
- Is Now a Good Time to Buy Lockheed Martin?
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%.
- Why Lockheed Martin Stock Soared Today
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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