Lockheed Martin LMT appears well positioned to benefit from one of the fastest-growing areas of global defense spending — air and missile defense. With a broad portfolio spanning Patriot PAC-3 interceptors, THAAD, Precision Strike Missile (PrSM) and other advanced missile systems, Lockheed Martin is positioned to capitalize on the long-term modernization cycle.
During the first quarter of 2026, the company signed several long-term framework agreements with the U.S. government to accelerate production of Patriot PAC-3, THAAD and PrSM systems. These agreements provide greater demand visibility and are expected to support investments in production facilities, supplier capacity and workforce expansion. Management expects these initiatives to drive a threefold to fourfold increase in production rates over the coming years.
Lockheed Martin’s Missiles and Fire Control business reported an 8.2% year-over-year increase in sales, driven primarily by higher production on integrated air and missile defense programs, including PAC-3, as well as tactical missile programs such as JASSM, LRASM and PrSM. The growth demonstrates that increasing customer demand is already translating into stronger operating performance.
The broader defense spending environment also remains supportive. The United States and allied nations continue prioritizing integrated air and missile defense as a core national security objective. Increased investments in layered defense architectures, precision strike capabilities and advanced interceptors are expected to remain a key component of defense budgets for years to come. These structural trends could support sustained demand across Lockheed Martin's missile portfolio.
Defense Companies Benefiting From Rising Missile Demand
Along with Lockheed Martin, several other defense companies are also positioned to benefit from growing investments in missile defense and precision weapons, as discussed below:
RTX Corporation RTX continues to benefit through its role in the Patriot air and missile defense system and its expanding portfolio of advanced missile technologies.
Northrop Grumman NOC is strengthening its position through missile defense sensors, strategic deterrence programs and next-generation hypersonic technologies.
LMT Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year improvement of 29.5% and 8.02%, respectively.
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LMT Stock Trades at a Discount
In terms of valuation, LMT’s forward 12-month price-to-sales (P/S) is 1.47X, a discount to the industry’s average of 2.54X.
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LMT Stock’s Price Performance
In the past six months, the company’s shares have lost 11.8% compared with the industry’s 11.4% decline.
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LMT’s Zacks Rank
The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Lockheed Martin Corporation (LMT): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).