News about Lockheed Martin

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.

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.

Lockheed Martin's backlog stands at $230 billion, nearly $37 billion above the end of 2025 and about 2.8 times the midpoint of its 2026 revenue guidance of $80.75 billion. Almost all of the increase came from the missiles and fire control (MFC) segment, which carries the company's highest profit margin, suggesting improving backlog margins. Growth was driven by mature systems, including a $35 billion THAAD interceptor award in June and a $4.7 billion PAC-3 contract, where the main risk is manufacturing at scale rather than development. A $53.86 billion PAC-3 order placed after the second quarter is not included in the $230 billion figure. The author concludes the backlog is lower-risk and potentially higher-margin than in past years, supporting the investment case.