Why Lockheed Martin Stock Popped Today

UBS upgraded Lockheed Martin to buy, citing strong growth prospects from its F-35 fighter jet franchise and missile sales. With a book-to-bill ratio of 3.2x, UBS forecasts 9% annual sales growth and double-digit earnings growth over the next 2-3 years. At 19.2x earnings and less than 14x free cash flow with a 2.6% dividend yield, analysts see Lockheed as an attractive defense stock with earnings growth expected to exceed 19% over five years.