Why Lockheed Martin Stock Keeps Going Up
Key Points
UBS predicts Lockheed Martin's missile sales could rise 20% a year, for years.
Lockheed's missile division is unusually profitable, and could cause profits to rise even faster.
- Motley Fool Issues Rare "Total Conviction" Buy Alert ›
It's been a little over a month since UBS analyst Gavin Parsons upgraded Lockheed Martin (NYSE:LMT) stock to "buy" with a $674 price target, predicting "26% upside" as sales of missiles, munitions, F-35 stealth fighters, helicopters, and... Trident nuclear missiles (!) drive 9% sales growth for the defense giant over the next few years.
Lockheed stock is up a couple of percentage points since that Sept. 8 upgrade. Today, Lockheed's gaining another 2.5% through 1:10 p.m. ET -- its third straight day of gains.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
And once again, UBS is the reason.
Image source: Lockheed Martin.
UBS still loves Lockheed Martin stock
Back in September, Parsons argued that Lockheed Martin's Missiles and Fire Control (MFC) division alone would grow a total of 150% in size over the next five years. In a note covered on StreetInsider.com this morning, the analyst reiterated this prediction, further detailing that he expects sales to grow 20% annually through 2030.
In dollars and cents, he says this works out to sales of PAC-3 Patriot and THAAD air defense missiles and JASSM/LRASM attack missiles, "adding $7bn / $5bn / and $3bn respectively, to topline" revenue. But according to UBS, few investors are expecting such growth -- meaning Lockheed Martin could deliver positive earnings surprises for years.
How to value Lockheed Martin stock
Now here's why this is important for investors: Beyond just the revenue growth, you need to realize that MFC is currently Lockheed Martin's most profitable division, delivering 13% operating profit margins on its revenue, versus an overall profitability of 10.7%.
This implies that if Lockheed grows sales 20% annually, its profits could grow even faster -- specifically, faster than the 17% growth the rest of Wall Street predicts.
At a share price below 20 times earnings, Lockheed Martin stock looks like a buy to me.
Should you buy stock in Lockheed Martin right now?
Before you buy stock in Lockheed Martin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lockheed Martin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $391,581!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,780!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 16, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lockheed Martin. The Motley Fool has a disclosure policy.
