Lockheed Launches SV08 GPS III Satellite: Time to Buy the Stock?

Core Insights - Lockheed Martin Corp. has successfully launched its eighth GPS III satellite, enhancing its capabilities in providing positioning, navigation, and timing services for both civilian and military applications [1][9] - The demand for secure navigation and defense systems is driving satellite deployment and the growth of the global space economy, positioning Lockheed favorably in this evolving market [2][3] - Lockheed's recent enhancements to the GPS ground segment, including M-Code Early Use, improve secure military communications for U.S. and allied forces, attracting investor interest in space stocks [3] Company Performance - Lockheed secured multi-million-dollar contracts in Q1 2025, resulting in a record backlog of $173 million as of March 30, 2025, which supports long-term revenue growth [5][9] - The proposed 13$1.01 trillion for fiscal 2026 is expected to significantly benefit Lockheed, particularly in space and missile defense sectors [6][9] - The Zacks Consensus Estimate projects a long-term earnings growth rate of 10.5% for Lockheed, indicating robust growth potential [7] Financial Estimates - The Zacks Consensus Estimate for Lockheed's 2025 and 2026 sales indicates year-over-year growth of 4.6% and 3.8%, respectively [10] - However, 2025 earnings estimates show a decline of 4.32%, while 2026 earnings are expected to rise by 9.4% [10][12] - Lockheed's forward 12-month price-to-earnings (P/E) ratio is 16.93X, which is lower than the peer group's average of 17.35X, suggesting a more favorable valuation [16] Market Position - Lockheed's shares have underperformed in the year-to-date period, losing 1.2%, compared to a 19% growth in the Zacks Aerospace-Defense industry [13][14] - Competitors like Boeing and Embraer have seen significant gains, with shares rising 20.6% and 25.3%, respectively [15] - Despite the challenges, Lockheed's strong backlog and favorable P/E ratio present potential for long-term investment [23][24]