Lockheed Martin: Record Backlog And Missile Demand Make The Pullback A Strong Buy

DCF Value Investor 146 Followers Follow Summary Lockheed Martin earns a Strong Buy rating, trading at 17.5x 2026 earnings, supported by record backlog and robust demand visibility. LMT’s Q2 sales rose 11% to $20.1B, with free cash flow guidance for 2026 upgraded to $7–7.2B and backlog reaching $230.4B. Missile defense contracts, including THAAD and PAC-3 MSE, drive an 88% six-month backlog surge in Missiles and Fire Control. Dividend yield of 2.6% and a free cash flow yield of 5.8% enhance total return potential, despite execution and contract risks. JHVEPhoto/iStock Editorial via Getty Images Introduction Lockheed Martin ( LMT ) has entered one of the most robust demand levels of its history, but its stock has experienced a significant drop when compared to 2026's peak. The stock's closing price was approximately $531.55 This article was written by DCF Value Investor 146 Followers Follow I'm DCF Value Investor a passionate individual analyst with unique ideas that cover all types of stocks and commodities. I focus on companies fundamentals and valuation, to deliver a proper investment analysis. My ideas explore a different point of view for undervalued opportunities. Although I cover all types of stocks, the sectors I prefer are materials, technology and real estate. My research process begins with screening for companies that appear undervalued based on their balance sheet, income statement and cash flow statement. From there I conduct a fundamental analysis, including valuation ratios and industry trends. Through my analysis, I aim to help my readers to make better investment decisions. As an independent writer, I write with a particular perspective, bringing fresh ideas to the platform. My ideas keen all types of readers with her intense research in the stock I'm covering, the investment thesis on my articles is solid as it is back on fundamentals and the whole concept on my pieces are based on value investing. My motivation for writing on Seeking Alpha is to offer a different perspective from Wall Street, writing about hidden opportunities in the market. Investigating over hyped stocks in the market, digging into financials and valuation with my own analysis are my passion. 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.