Lockheed Martin Corporation (NYSE:LMT) is among the 10 Best Aerospace and Defense Stocks to Buy According to Hedge Funds. On June 3, the company said it had successfully intercepted a test drone using a Joint-Air-to-Ground Missile (JAGM) from a shipping container.
The development comes amid a surge in demand for cheaper alternatives to countering drones. It is worth noting that the Pentagon has long called for the deployment of containerized weapon systems because of their low cost and greater mobility.
The missile was fired from a GRIZZLY containerized launcher, while the Sanctum Counter-Unmanned Aerial System and R-40 radars built by Fortem Technologies were used to track and engage the drone threat.
According to Lockheed Martin Corporation’s press release, the launcher can be mounted on ground sites or maritime platforms, with the capacity to have up to eight rounds of munitions at a time.
In other news, interest from institutional investors in the defense contractor has had a substantial rise sequentially. According to Insider Monkey’s database for Q1 2026, 83 hedge funds held a stake in the company, up from 59 in the previous quarter.
Moreover, while Wall Street has a cautious outlook for the stock, analysts’ price targets indicate an average share price upside potential of 20% as of the close on June 5.
Lockheed Martin Corporation is one of the world’s largest defense contractors. It specializes in the research, design, and development of advanced technology systems, products, and services. It is famed for manufacturing notable fighter jets, including the F-35.
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