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Lockheed Martin Stock Rises 13.7% in a Month: Here's How to Play
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Key Takeaways
LMT shares rose 13.7% in a month, beating the aerospace-defense industry's 3.6% gain.
Lockheed Martin secured a January 2026 PAC-3 MSE deal and delivered a record 191 F-35 jets in 2025.
Lockheed Martin won an SDA Tranche 3 Tracking Layer award for 18 vehicles, potentially worth over $1B.
Lockheed Martin’s (LMT - Free Report) shares have risen 13.7% over the past month, outperforming the Zacks Aerospace-Defense industry’s growth of 3.6%. The company remains one of the largest U.S. defense contractors with a steady order flow from the Pentagon and other U.S. allies.
Image Source: Zacks Investment Research
Other defense stocks, such as The Boeing Company (BA - Free Report) and Northrop Grumman (NOC - Free Report) , have also outperformed the industry during the same period. Shares of Boeing and Northrop Grumman have risen 16.6% and 9.2%, respectively, during the same time frame.
Let's examine the factors and assess the stock's investment prospects to make an informed decision.
Factors Acting in Favor of LMT
Lockheed Martin is one of the largest U.S. defense contractors with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT program. The company stands to benefit from the rising U.S. defense budget. President Trump proposed raising military spending to about $1.5 trillion in 2027, up from $901 billion in 2026.
In January 2026, Lockheed Martin and the U.S. Government reached a historic deal to turbo???charge PAC-3® Missile Segment Enhancement (“MSE”) production for the United States and its allies. The company will benefit from this agreement through higher and more predictable revenues, as the deal significantly ramps up missile output to meet the rising U.S. and allied air- and missile-defense demand.
Lockheed Martin stands to benefit from the record-breaking F-35 deliveries and combat performance in 2025 because this boosts revenues and strengthens long-term production demand. The delivery of a record 191 F-35 fighter jets reflects sustained global demand and increasing program maturity, reinforcing the company’s leadership position in the global defense market. Higher deliveries also expand the global F-35 fleet, deepen international partnerships, and support further maintenance and upgrade contracts.
In December 2025, the Space Development Agency (“SDA”) awarded Lockheed Martin a contract for 18 space vehicles for its Tranche 3 Tracking Layer constellation, with a potential value of more than $1 billion. This contract expands Lockheed Martin’s role in the SDA’s Proliferated Warfighter Space Architecture, reinforcing its position as a key supplier of space-based missile detection, tracking, and defense capabilities against advanced threats, including hypersonic weapons. This supports a growing backlog of space defense work, enhancing financial stability and technological leadership.
Challenges Faced by LMT
Lockheed Martin experienced performance issues on a classified fixed-price incentive fee contract in its Aeronautics business segment and periodically recognized reach-forward losses. During the first nine months of 2025, the company recorded losses of $950 million on this program. It also reported losses of $570 million on the Canadian Maritime Helicopter Program, $95 million on the Turkish Utility Helicopter Program at its RMS business segment and $105 million of unfavorable profit adjustments on C-130 programs at its Aeronautics business segment.
Estimates for LMT Stock
The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates a decrease of 0.17% over the past 60 days. LMT’s long-term (three to five years) earnings growth rate is 11.85%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Boeing’s 2026 EPS indicates a decrease of 21.13% over the past 60 days. BA’s long-term earnings growth rate is 31.33%. The consensus estimate for Northrop Grumman’s 2026 EPS indicates an increase of 0.17% over the past 60 days. NOC’s long-term earnings growth rate is 4.28%.
LMT’s Earnings Surprise History
The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 13.29%.
Image Source: Zacks Investment Research
LMT Stock’s ROIC
The image below shows that Lockheed Martin’s trailing 12-month return on invested capital (ROIC) beats the peer group’s average. This suggests that the company's investments are yielding sufficient returns to cover its expenses.
Image Source: Zacks Investment Research
LMT Stock Trades at a Discount
In terms of valuation, LMT’s forward 12-month price-to-sales (P/S) is 1.64X, a discount to the industry’s average of 2.72X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with that of its peer group.
Image Source: Zacks Investment Research
What Should an Investor Do?
Lockheed Martin’s platform-centric defense portfolio ensures steady follow-on orders across major U.S. military branches and IT programs. The January 2026 PAC-3 MSE production deal boosts missile output, driving higher, more predictable revenues amid rising U.S. and allied air- and missile-defense demand. Record delivery of 191 F-35 jets in 2025 underscores strong global demand, supporting long-term production, sustainment and upgrade revenues.
However, considering its financial pressures and declining earnings estimates, new investors should wait and look for a better entry point. Those who already have this Zacks Rank #3 (Hold) stock in their portfolio may continue to retain it, considering the company’s impressive long-term growth projection and better ROIC.
Image: Bigstock
Lockheed Martin Stock Rises 13.7% in a Month: Here's How to Play
Key Takeaways
Lockheed Martin’s (LMT - Free Report) shares have risen 13.7% over the past month, outperforming the Zacks Aerospace-Defense industry’s growth of 3.6%. The company remains one of the largest U.S. defense contractors with a steady order flow from the Pentagon and other U.S. allies.
Image Source: Zacks Investment Research
Other defense stocks, such as The Boeing Company (BA - Free Report) and Northrop Grumman (NOC - Free Report) , have also outperformed the industry during the same period. Shares of Boeing and Northrop Grumman have risen 16.6% and 9.2%, respectively, during the same time frame.
Let's examine the factors and assess the stock's investment prospects to make an informed decision.
Factors Acting in Favor of LMT
Lockheed Martin is one of the largest U.S. defense contractors with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT program. The company stands to benefit from the rising U.S. defense budget. President Trump proposed raising military spending to about $1.5 trillion in 2027, up from $901 billion in 2026.
In January 2026, Lockheed Martin and the U.S. Government reached a historic deal to turbo???charge PAC-3® Missile Segment Enhancement (“MSE”) production for the United States and its allies. The company will benefit from this agreement through higher and more predictable revenues, as the deal significantly ramps up missile output to meet the rising U.S. and allied air- and missile-defense demand.
Lockheed Martin stands to benefit from the record-breaking F-35 deliveries and combat performance in 2025 because this boosts revenues and strengthens long-term production demand. The delivery of a record 191 F-35 fighter jets reflects sustained global demand and increasing program maturity, reinforcing the company’s leadership position in the global defense market. Higher deliveries also expand the global F-35 fleet, deepen international partnerships, and support further maintenance and upgrade contracts.
In December 2025, the Space Development Agency (“SDA”) awarded Lockheed Martin a contract for 18 space vehicles for its Tranche 3 Tracking Layer constellation, with a potential value of more than $1 billion. This contract expands Lockheed Martin’s role in the SDA’s Proliferated Warfighter Space Architecture, reinforcing its position as a key supplier of space-based missile detection, tracking, and defense capabilities against advanced threats, including hypersonic weapons. This supports a growing backlog of space defense work, enhancing financial stability and technological leadership.
Challenges Faced by LMT
Lockheed Martin experienced performance issues on a classified fixed-price incentive fee contract in its Aeronautics business segment and periodically recognized reach-forward losses. During the first nine months of 2025, the company recorded losses of $950 million on this program. It also reported losses of $570 million on the Canadian Maritime Helicopter Program, $95 million on the Turkish Utility Helicopter Program at its RMS business segment and $105 million of unfavorable profit adjustments on C-130 programs at its Aeronautics business segment.
Estimates for LMT Stock
The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates a decrease of 0.17% over the past 60 days. LMT’s long-term (three to five years) earnings growth rate is 11.85%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Boeing’s 2026 EPS indicates a decrease of 21.13% over the past 60 days. BA’s long-term earnings growth rate is 31.33%. The consensus estimate for Northrop Grumman’s 2026 EPS indicates an increase of 0.17% over the past 60 days. NOC’s long-term earnings growth rate is 4.28%.
LMT’s Earnings Surprise History
The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 13.29%.
Image Source: Zacks Investment Research
LMT Stock’s ROIC
The image below shows that Lockheed Martin’s trailing 12-month return on invested capital (ROIC) beats the peer group’s average. This suggests that the company's investments are yielding sufficient returns to cover its expenses.
Image Source: Zacks Investment Research
LMT Stock Trades at a Discount
In terms of valuation, LMT’s forward 12-month price-to-sales (P/S) is 1.64X, a discount to the industry’s average of 2.72X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with that of its peer group.
Image Source: Zacks Investment Research
What Should an Investor Do?
Lockheed Martin’s platform-centric defense portfolio ensures steady follow-on orders across major U.S. military branches and IT programs. The January 2026 PAC-3 MSE production deal boosts missile output, driving higher, more predictable revenues amid rising U.S. and allied air- and missile-defense demand. Record delivery of 191 F-35 jets in 2025 underscores strong global demand, supporting long-term production, sustainment and upgrade revenues.
However, considering its financial pressures and declining earnings estimates, new investors should wait and look for a better entry point. Those who already have this Zacks Rank #3 (Hold) stock in their portfolio may continue to retain it, considering the company’s impressive long-term growth projection and better ROIC.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.