Lockheed's Missile Division on a Hot Streak: What's Driving the Surge?

Lockheed Martin Corp.’s (LMT) Missile and Fire Control (“MFC”) business division is experiencing explosive growth, with soaring demand for precision strike systems, hypersonic weapons and missile defense solutions. But, what’s fueling this rapid expansion?

A combination of geopolitical tensions, military modernization programs, and cutting-edge defense technological advancements has positioned Lockheed as a dominant missile player in the global arms market.

Notably, escalating conflicts around the globe, especially in the Middle East lately, have prompted nations worldwide to prioritize their missile capabilities as a strategic deterrent. This, in turn, has been boosting demand for Lockheed’s renowned missiles like High Mobility Artillery Rocket System (“HIMARS”), Javelin, and Terminal High Altitude Area Defense (“THAAD”) missile systems.

In addition to traditional missile products, Lockheed is at the forefront of hypersonic missile development, with programs like the AGM-183A Air-Launched Rapid Response Weapon (“ARRW”) and the Long-Range Hypersonic Weapon (“LRHW”) gaining traction.

Consequently, Lockheed is witnessing solid order flow for its missiles. Such order growth culminates in solid revenue generation for LMT’s MFC unit. This unit witnessed a notable year-over-year sales rise of 11%, 13% and 8% in the past three consecutive quarters.

Looking ahead, to further keep the growth streak alive for its MFC unit, Lockheed continues to innovate new missile programs. LMT launched its Mako hypersonic multi-mission missile last year, which can be deployed from 5th-generation fighter jets. The company introduced a new cruise missile, the Common Multi-Mission Truck (“CMMT”) missile, in 2025.

Other Stocks Warranting a Look

LMT apart, defense stocks like Northrop Grumman Corp. (NOC) and RTX Corp. (RTX) also warrant a look, considering their deep involvement in the missile industry.

Northrop Grumman provides high-speed, long-range strike weapons like the AARGM-ER, which is a supersonic, air-launched tactical missile system. It also develops and builds advanced missile defense technology, ranging from command systems to directed energy weapons, advanced munitions and powerful sensors.

RTX is known for its missile defense systems like the Patriot and SM-6, which are in high demand globally. It also provides advanced sensors and interceptors to identify, track and defeat threats as part of a layered missile defense.

The Zacks Rundown for LMT

Shares of LMT have lost 12.3% in the year-to-date period against the industry’s 27.3% growth.

The company’s shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 16.25X compared with its industry’s average of 27.70X.

The Zacks Consensus Estimate for LMT’s near-term earnings has moved south in the past 60 days.

LMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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