Is Lockheed Martin Corporation (LMT) One of the Best Defense Contractor Stocks to Buy Now?
Rating of the company Lockheed Martin CorporationLMT) be one of the best defense contract stocks you can buy right now. On March 25, 2026, Lockheed Martin (NYSE:LMT) and the Department of Defense announced a framework agreement to accelerate the production of Precision Strike Missiles (PrSM). Building on last year’s $4.94 billion Army contract, the new program will quadruple the PrSM capacity, ensuring the US maintains a significant edge.
Jordan Tan / Shutterstock.com
Lockheed Martin uses advanced technology and its industrial base to deliver faster, more efficient products, while creating thousands of skilled American jobs. The agreement could expand into a multi-year agreement lasting seven years, pending congressional approval.
The PrSM, designed to replace the Army Tactical Missile System, offers extended range, enhanced vulnerability, and versatile deployment. The missile entered combat in early March during Operation Epic Fury, proving its ability to strike.
Lockheed Martin has invested more than $7 billion since 2017 to increase production of priority programs, including $2 billion dedicated to weapons. With over 115,000 workspaces and 400 employees already supporting PrSM, the company is growing rapidly. CEO Jim Taiclet emphasized that Lockheed Martin is committed to delivering high-quality precision fires to meet operational requirements and strengthen the US deterrence against emerging threats.
On March 23, Sikorsky, a Lockheed Martin company, announced that it had successfully tested and delivered a UH-60MX Black Hawk test helicopter for the US Army equipped with MATRIX.
The test and delivery mark an important milestone in the pursuit of the goal of building open architecture, supporting autonomy and flight. MATRIX Suite integration improves mission efficiency and warfighter survivability. The suite also enables automatic location detection and obstacle avoidance for safer operation.
Additionally, the Lockheed Martin suite enables real-time location and obstacle awareness to help pilots and autonomous systems avoid threats. The open layout offered will reduce maintenance hours and test work, allowing them to focus on mission critical decisions.
Lockheed Martin Corporation (NYSE:LMT) is a leading global aerospace, defense, and technology company focused on the research, design, development and manufacturing of advanced technology systems, products and services.
While we acknowledge the potential of LMT as an investment, we believe that certain AI stocks offer greater potential and carry less downside risk. If you’re looking for an extremely overlooked AI stock that will benefit greatly from the Trump-era costs and sea trend, check out our free report best short term AI stock.
