Lockheed Martin (LMT) Gains Buy Rating on Strong 2026 Outlook

Lockheed Martin Corporation (NYSE:LMT) ranks among the 10 best new stocks to buy in Ray Dalio’s portfolio. On January 9, Truist Securities upgraded Lockheed Martin Corporation (NYSE:LMT) from Hold to Buy, raising its price target to $605 from $500. The boost follows Lockheed Martin’s slump in 2025, with Truist citing an appealing valuation that offers a “compelling risk/reward profile” for 2026.

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The firm projects better execution and operational efficiency for Lockheed Martin Corporation (NYSE:LMT) in 2026, as well as lower estimated costs at completion (EACs), and anticipates the company’s Missiles and Fire Control (MFC) division to drive revenue growth with double-digit rises due to increased capacity along with elevated global demand.

Moreover, Lockheed Martin Corporation (NYSE:LMT) delivered a record 191 F-35 Lightning II fighter jets in 2025, above the previous high of 142 aircraft. This milestone occurs as the F-35 program approaches one million flying hours and concludes the TR-3 software update. Truist stated that, while the F-35 program continues to be “an easy target,” worries related to the Defense Department’s Office of General Evaluation (DOGE) had “largely subsided.”

Lockheed Martin Corporation (NYSE:LMT) is one of the largest defense contractors in the world. It specializes in the research, design, and development of advanced technology systems, products, and services.

While we acknowledge the potential of LMT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LMT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.