Pentagon Taps Boeing, Lockheed To Triple Critical Missile Output

Lockheed Martin Corp. (NYSE:LMT) shares moved higher on Wednesday after announcing a major defense production framework with the U.S. Defense Department. The Pentagon has outlined a long-term plan to ramp up Patriot Advanced Capability-3 (PAC-3) missile supply-chain capacity. The multi-year framework highlights increasing demand for defense technologies amid evolving geopolitical risks. Details The Department said it reached a "landmark framework agreement" with Boeing Company (NYSE:BA) and Lockheed Martin to triple production capacity for seekers used in the PAC-3 Missile Segment Enhancement (MSE). The seven-year agreement with Boeing, identified as a key PAC-3 supplier, that directly supports a separate, recently announced agreement with Lockheed Martin to more than triple output of the PAC-3 MSE all-up round. In the release, the Department ties the deal to President Trump and Secretary Hegseth's "Arsenal of Freedom" push, saying the plan is meant to accelerate delivery of critical capabilities and create thousands of jobs across the defense industrial base. Technical Analysis The broader market is trading higher today, with the S&P 500 up 1.12% and the Nasdaq up 1.69%. Industrials are gaining 2.05% with market breadth positive (9 sectors advancing, advance/decline ratio 4.5), and LMT is moving higher in that same direction during regular trading. LMT is trading 3.2% below its 20-day SMA and 10.5% above its 100-day SMA, showing short-term cooling inside a still-constructive longer-term trend. Shares are up 37.45% over the past 12 months and are positioned closer to their 52-week high ($692.00) than their 52-week low ($410.11). The RSI is 38.70, which keeps momentum in neutral territory but closer to the "washed out" end of the range than overbought. MACD is -7.4359 versus a signal line of -1.6172, a bearish configuration that suggests downside pressure is still present even after the longer-term run. With RSI below 50 and MACD bearish, the indicators point to mixed momentum (neutral-to-bearish) rather than a clean trend continuation signal. Key Resistance: $646.50 Key Support: $595.00 Earnings & Analyst Outlook Looking further out, the next major catalyst for the stock arrives with the April 23, 2026 (confirmed) earnings report. EPS Estimate: $6.74 (Down from $7.28 YoY) Revenue Estimate: $18.33 Billion (Up from $17.96 Billion YoY) Valuation: P/E of 28.1x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $592.38. Recent analyst moves include: Wells Fargo: Initiated with Equal-Weight (Target $650.00) (Apr. 1) Susquehanna: Positive (Raises Target to $740.00) (Mar. 18) Citigroup: Neutral (Raises Target to $673.00) (Feb. 5) Top ETF Exposure iShares U.S. Aerospace & Defense ETF (BATS:ITA): 5.18% Weight Global X Defense Tech ETF (NYSE:SHLD): 8.86% Weight Invesco Aerospace & Defense ETF (NYSE:PPA): 9.06% Weight Significance: Because LMT carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock. LMT Price Action: Lockheed Martin shares were up 2.11% at $617.12 at the time of publication on Wednesday, according to Benzinga Pro data. Photo via Shutterstock