Lockheed Martin Corporation (NYSE: LMT) shares have dropped 3.8% over the past three months, yet the stock has still managed to outperform the broader Zacks Aerospace-Defense industry, which fell 7.7% over the same period.
Fellow defense giants RTX Corporation (NYSE: RTX) and Boeing (NYSE: BA) fared worse during the same stretch, declining 8% and 8.8%, respectively, falling deeper into negative territory than Lockheed.
RTX’s defense business remains well-positioned, backed by strong bookings from the Pentagon and foreign allies, with defense sales expected to grow at a high-single-digit rate in 2026.
Boeing’s defense and space business also carries a positive long-term outlook, given its role as one of the largest defense contractors globally and a prominent integrator in the International Space Station.
On September 30, 2026, Sikorsky, a Lockheed Martin company, reached a Novel Production Agreement with the U.S. Army for Black Hawk helicopters, initially covering 16 aircraft with deliveries beginning in 2028.
The Black Hawk platform already boasts an installed base of more than 5,000 helicopters delivered to over 36 allied nations, giving the new production agreement considerable strategic significance for sustaining global demand.
Lockheed is also investing $8 to $9 billion to scale munitions production across more than 20 U.S. sites, encompassing expanded manufacturing capacity, new facilities, advanced technologies, and workforce growth.
The company is deploying longer-term, commercial-style agreements with the Department of War for programs including PAC-3 MSE, THAAD, PrSM, and JATM, already achieving a more than 130% increase in thermal-battery production capacity and a 21% reduction in scaling costs.
On September 29, 2026, Avio USA broke ground on its first U.S. solid rocket motor manufacturing facility in Hurt, Virginia, with the approximately 900,000-square-foot site expected to produce thousands of motors annually for U.S. tactical missile programs.
Execution risks continue to weigh on results, with Aeronautics facing F-16 and C-130 production issues, $160 million of lower net favorable profit adjustments, and RMS recording unfavorable adjustments of $65 million on Heavy Lift and $50 million on Seahawk programs.
The company’s total debt to capital stands at 70.08%, notably above the industry average of 46.7%, which remains a financial pressure point for investors evaluating the stock’s risk profile.
Lockheed’s forward 12-month price-to-sales ratio of 1.39X represents a meaningful discount to the industry average of 2.16X, suggesting the stock trades below its peer group relative to projected sales growth.
The Zacks Consensus Estimate for Lockheed’s 2026 earnings per share points to year-over-year growth of 31.7%, with a long-term earnings growth rate of 15.13% over the next three to five years.
Lockheed beat earnings expectations in three of the past four quarters and missed in one, producing an average earnings surprise of 8.85%, reflecting generally solid operational execution against analyst forecasts.
Analysts currently assign Lockheed a Zacks Rank of 3, equivalent to a Hold rating, suggesting existing shareholders may consider retaining their position while new investors wait for a more attractive entry point.
