10 Undervalued Aerospace and Defense Stocks to Buy

7. Lockheed Martin Corporation (NYSE:LMT)

Forward P/E: 16.06

Stock Upside Potential: 24.06%

Number of Hedge Fund Holders: 59

Lockheed Martin Corporation (NYSE:LMT) is an undervalued aerospace and defense stock to buy. On May 12, during the Balikatan 2026 exercise, Lockheed Martin Corporation (NYSE:LMT) successfully demonstrated the integration of sensors, fires systems, and airspace management via a unified data platform.

The platform demonstrated its ability to compress sensor-to-shooter timelines, accelerate warfighter capability, and provide a real-time view of the battlefield. The Team Lockheed Martin NGC2 collaborated with the Capability Program Executive Command and Control Information Network, the Armed Forces of the Philippines, the I Marine Expeditionary Force, I Corps, and the 613 Air Operations Center to conduct the operational exercises.

It marked the first time that the Lockheed Martin team successfully demonstrated cross-domain data sharing in the 25ID operational movement. The company is poised to collaborate across the industry with companies such as Raft, Rune, and Amazon Web Services to integrate best-in-class capabilities into the platform.

Lockheed Martin Corporation (NYSE:LMT) is a global security and aerospace company primarily focused on the research, design, development, manufacture, and sustainment of advanced technology systems, products, and services. As a top defense contractor, it specializes in military aircraft (like the F-35), missiles, space systems, and radar technologies for the U.S. and allied governments.