What changed
$LMT — ADD 📊 | 6 MONTHS THESIS
🎯 Q1 2026 | Rev $18.0B | EPS $6.44 vs $6.69 🔴 | Margin 11.4%
💡 Consensus focused on the quarterly miss, creating near-term weakness, but ignored the reaffirmed guidance pointing to robust margin improvement (operating profit +25% on sales +5%) and strong FCF generation ($6.5-6.8B).
📉 Reward/risk: 2.06:1
🏢 Business Quality: 7/10 - Defense prime with wide moat (F-35, classified programs) and high barriers, but dependent on US defense budgets and vulnerable to program-specific delays.
📊 Valuation: fair - Current PE 25.6x is above defense peer average (18-22x) but supported by growth and geopolitical spending. FCF yield 5.3-5.6% is adequate.
🔮 Catalyst: Q2 2026 earnings release (expected July 2026) demonstrating margin expansion and possible guidance raise.
💰 Entry: $535.95, stop $500, target $610
📊 Our read: ADD. Full analysis →
https://stockduty.xyz/s/LMT0617