New York, May 23, 2026, 13:03 EDT
Lockheed Martin shares climbed 2.0% Friday to close at $533.24, pushing the stock about 3.3% higher from where it stood on May 15 ahead of the Memorial Day break. The defense company managed a stronger finish after a volatile week, as investors balanced worries over earnings with shifting missile demand.
Capacity is the focus now. Lockheed has started building an 87,000-square-foot munitions center in Troy, Alabama to boost production of THAAD interceptor missiles and Next Generation Interceptors. CEO Jim Taiclet called it “an important step forward.” Pentagon weapons buyer Michael Duffy said, “talk becomes action.” Reuters
U.S. markets will be closed for Memorial Day on Monday, May 25, according to the New York Stock Exchange. The S&P 500 just logged its eighth weekly gain in a row, up 0.9% for the week, while the Dow added 2.1%. Trading resumes Tuesday.
Lockheed’s shares beat major defense names Friday. RTX added 1.0% and Northrop Grumman was up 0.73%. Boeing ended down 0.27%, according to MarketWatch. Lockheed is still almost 23% under its 52-week peak of $692, so the rebound hasn’t made up for the spring drop.
The Alabama project is part of efforts to raise weapons production. Reuters said the plant links to an $8 billion to $9 billion investment program going to 2030, with about $1.25 billion invested before the contract was set. The funds target framework deals aimed at increasing production of THAAD, Patriot PAC-3, and Precision Strike Missiles.
Lockheed’s first-quarter numbers came in a bit uneven for investors. Sales hit $18.0 billion, net earnings landed at $1.5 billion, and earnings per share were $6.44. Free cash flow turned negative at $291 million after capital spending. CEO Taiclet said there’s a “high level of demand” and said new long-term production deals could set “the example” for future contracts. PR Newswire
Lockheed Martin is stuck at Hold for most analysts, according to StockAnalysis. Out of 22 analysts, the consensus is still Hold with an average target price of $595.29 over 12 months. On May 18, Citigroup’s John Godyn held his Hold recommendation and lowered his price target to $571 from $675.
Downside risk remains. After the Q1 report, RBC Capital pointed to weak bookings from timing issues and flagged possible pressure from cost estimates and lumpy growth outside the missiles unit. Lockheed’s rally could fade fast if production ramps are delayed, contract awards slow, or defense spending news loses steam.
Traders face a shorter week with markets open from Tuesday to Friday. The stock could move on fresh contract notices, updates on missile procurement, or if the broader market keeps lifting industrials and defense names instead of shifting back to growth stocks.
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