Lockheed Martin Corporation (NYSE:LMT) Shares Lag Missile Demand Surge as Focus Turns to Cash Conversion

Lockheed Martin's stock performance has lagged despite securing a significant $58.6 billion missile contract, with investors now focused on the company's ability to convert its record backlog into free cash flow and improved margins. While analyst sentiment is becoming more favorable, challenges remain in congressional approval, delivery timelines, raw material supply, and production capacity. The company projects strong sales growth and free cash flow for 2026, but its stock valuation already reflects much of this anticipated demand, with further revaluation dependent on operational performance.