M
Macro Analyst
Mar 23, 2026 · bullish
Lockheed Martin has reported expanding operating margins over the past 12 quarters, with the most recent quarter's margin reaching 6.7%. This margin expansion has been driven by the company's focus on operational efficiency, cost optimization, and disciplined execution. Earnings growth has also been strong, with Lockheed Martin's EPS increasing from $8.75 in Q4 2019 to $21.49 in the most recent quarter, a 146% increase. This trajectory suggests the company is effectively translating its operational improvements into bottom-line results. The combination of margin expansion and earnings growth is a positive indicator of Lockheed Martin's fundamental strength. As the company continues to benefit from increased defense spending, both domestically and internationally, its ability to maintain profitability and generate strong earnings should continue. Given Lockheed Martin's current price of $410.51 and the company's robust earnings growth potential, I believe the stock could reach $460 (12% upside) over the next 180 days. This target is supported by the company's track record of operational excellence, its favorable industry positioning, and the expected continuation of its earnings momentum.

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