Lockheed Martin Shares Surge to Fresh Peak on Strong Defense Outlook

Lockheed Martin Corporation has powered to a new 52-week high, fueled by record-breaking production of its F-35 fighter jets and a major contract to scale up missile defense systems. This surge comes amid a split in analyst sentiment, with some urging investors to buy while others maintain a more cautious stance.

The broader defense sector is receiving a boost from ongoing discussions about a potential increase in the U.S. defense budget. Market participants are betting that leading contractors like Lockheed Martin will be primary beneficiaries of rising military expenditures, both domestically and among allied nations. The company's recent operational achievements position it strongly to capitalize on this favorable environment.

Operational Execution Drives Performance

A key driver behind the stock's momentum is the company's exceptional manufacturing output. In 2025, Lockheed Martin delivered 191 F-35 aircraft, a significant jump from the 142 units shipped the previous year. The firm states it now produces these advanced fighters five times faster than any other allied combat aircraft manufacturer. This efficiency is rapidly converting a substantial order backlog into tangible revenue.

Should investors sell immediately? Or is it worth buying Lockheed?

Further strengthening its operational foundation, Lockheed has secured a significant agreement with the U.S. government to more than triple production of its PAC-3 missile defense interceptors. This expansion is designed to meet growing domestic and international demand for advanced air and missile defense capabilities.

Diverging Views on Valuation

Analyst opinions on the stock's current valuation present a mixed picture, reflecting a broader debate on whether defense sector valuations have already accounted for future growth prospects.

• Truist Securities has upgraded its rating from "Hold" to "Buy," setting a price target of $605. The firm cites an attractive valuation relative to the company's production momentum as the core reason for its bullish call.
• Other institutions express more measured outlooks:
  • Jefferies maintains a "Hold" rating with a $540 price target.
  • Morgan Stanley rates the stock "Equal-Weight," targeting $543.
  • JP Morgan holds a "Neutral" stance with a $515 price objective.

The disparity in these targets underscores the ongoing assessment of how much of Lockheed Martin's growth trajectory is already reflected in its share price.