Lockheed Martin: The Missile Supercycle Could Drive A Re-Rating (Rating Upgrade)

Oliver Rodzianko 7.17K Followers Follow Summary Lockheed Martin earns a buy rating due to a robust backlog, strong missile segment growth, and a compelling long-term growth trajectory. LMT's record $230.4B backlog, with the missile backlog nearly doubling to $87.9B, underpins years of future revenue and cash flow expansion. Despite fundamental undervaluation (PEG 0.97, P/E 20.5% below the sector), I await either a technical breakout above $730 or a value entry near $515. Execution risks include program charges, cost overruns, and the need to convert backlog into profitable sales and margin expansion. Jorisvo/iStock via Getty Images Since my last Lockheed Martin ( LMT ) analysis , the stock has gained 22.5% in price, and has delivered a total return including dividends of 31%. This is a strong return, but it is much less than the 61.5% for This article was written by Oliver Rodzianko 7.17K Followers Follow Oliver Rodzianko is Director of Invictus Origin and a private investor managing a high-alpha portfolio strategy focused on rotation and disciplined cash deployment during market dislocations. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.