Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. The company's Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems. Its Defense Systems segment designs, develops, integrates, and produces tactical weapons and missile defense solutions, and provides sustainment, modernization, and training services for manned and unmanned aircraft and electronics systems. It also offers integrated, all-domain command, and control battle management systems, precision strike weapons; high speed air-breathing and hypersonic systems; high-performance gun systems, ammunition, precision munitions and advanced fuzes; aircraft and mission systems logistics support, sustainment, operations and modernization; and warfighter training services. The company's Mission Systems segment offers command, control, communications and computers, intelligence, surveillance, and reconnaissance systems; radar, electro-optical/infrared and acoustic sensors; electronic warfare systems; advanced communications and network systems; cyber solutions; intelligence processing systems; navigation; and maritime power, propulsion, and payload launch systems. Its Space Systems segment offers satellites, spacecraft systems, subsystems, sensors, and payloads; ground systems; missile defense systems and interceptors; launch vehicles and related propulsion systems; and strategic missiles. Northrop Grumman Corporation was founded in 1939 and is based in Falls Church, Virginia.

Northrop Grumman демонстрирует высокие показатели по прибыльности, с ROE на уровне 26.5%, что значительно превышает средние значения в отрасли. Тем не менее, компания сталкивается с повышенной долговой нагрузкой, что вызывает опасения по поводу ее финансовой устойчивости. Мультипликаторы, такие как P/E и P/FCF, находятся в пределах медианы, однако высокие значения P/S и P/B могут указывать на возможную переоцененность. Дивидендная доходность снизилась, что также является негативным сигналом для инвесторов. Выручка и чистая прибыль демонстрируют рост, но наличие долговых обязательств требует особого внимания. В то же время, некоторые показатели, такие как валовая и операционная маржа, остаются ниже медианных значений, что может ограничивать потенциал роста компании. В целом, несмотря на сильные стороны, такие как высокая рентабельность и устойчивый рост выручки, риски, связанные с долгами и низкой дивидендной доходностью, требуют корректировки целевой цены.

Northrop Grumman Corporation

Northrop Grumman показывает высокую прибыльность и рост, но также сталкивается с рисками, связанными с долговой нагрузкой и снижением дивидендов.

Intuitive Machines, Inc. LUNR continues to strengthen its long-term revenue outlook through a massive backlog position that reflects sustained demand. The company is using its record $1.1 billion contracted backlog to expand its position as a diversified leader in space infrastructure and aerospace services.
Intuitive Machines reported that its backlog grew $842.4 million as of March 31, 2026, compared with Dec. 31, 2025. The increase was driven by $612.8 million in backlog added through the January 2026 acquisition of Lanteris, along with $428.9 million in new contract awards tied mainly to the IM-5 mission, a government defense contract, and several additional agreements.
Since many contracts in the aerospace and defense sector are multi-year agreements with milestone-based execution, a sizable backlog often provides insight into future growth. The increasing backlog for Intuitive Machines indicates that demand for its defense, communications, navigation, and lunar services is growing. The company expects nearly 60-65% of its backlog to be converted to revenues in 2026 and the remaining 35-40% in 2027 and beyond.
The backlog also supports LUNR’s outlook for 2026. Management reaffirmed full-year revenue guidance of $900 million to $1 billion and expects positive adjusted EBITDA for the year.
The company is gradually positioning itself as a long-term infrastructure provider for the broader space economy, including government exploration, national security, communications and deep-space operations, rather than relying exclusively on lunar landings.
Defense Giants Continue to Benefit From Record Backlogs
Companies are benefiting from rising defense spending globally and increasing demand for advanced aerospace technologies. Alongside LUNR, other defense players benefiting from strong order pipelines are discussed below:
Lockheed Martin LMT reported a backlog of roughly $186.4 billion as of March 31, 2026, supported by fighter aircraft, missile systems and classified defense programs.
Northrop Grumman Corporation NOC reported a backlog of nearly $95.6 billion as of March 31, 2026, backed by demand for missile defense, space systems and strategic deterrence programs.
LUNR Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2026 earnings per share implies an increase of 90.48% year over year.
Image Source: Zacks Investment Research
LUNR Stock Trades at a Premium
In terms of valuation, LUNR’s forward 12-month price-to-sales (P/S) is 7.54X, a premium to the industry’s average of 2.42X.
Image Source: Zacks Investment Research
LUNR Stock’s Price Performance
In the past month, the company’s shares have risen 23.1% against the industry’s 7.9% decline.
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LUNR’s Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can Intuitive Machines' Record Backlog Drive Its Next Phase of Growth?

Key Points
Kuwait has requested permission to buy a $2.5 billion integrated battle command system from Northrop Grumman, RXT, and Lockheed Martin.
Northrop Grumman is likely to receive the bulk of this defense contract.
The United States spent $25 billion fighting the Iran war -- but other countries suffered far more.
Kuwait, in particular, was targeted by an onslaught of 13 cruise missiles, 336 ballistic missiles, and 740 drones over the course of the war, straining its defense network past the limit. In addition to U.S. military bases in Kuwait -- Ali al-Salem Air Base, Camp Arifjan, and Camp Buehring -- Iran also damaged the country's Mina al-Ahmadi oil refinery, the Shuwaikh oil sector complex, and power generation facilities and water desalination plants.
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Even air defense systems were successfully targeted, including a Patriot missile battery at Ali al-Salem. "The Iranian attacks were precise. There are no random craters indicating misses," Center for Strategic and International Studies advisor and retired USMC Colonel Mark Cancian told The Washington Post.
Next time, Kuwait hopes to be better prepared to defend itself, and for this reason, it's asking Congress for permission to buy an Integrated Battle Command System from three U.S. defense contractors -- for $2.5 billion.
Earlier this month, the U.S. State Department notified Congress of Kuwait's request to purchase six dismounted Integrated Battle Command System (IBCS) engagement operations centers (EOC), two hosted IBCS EOCs, six dismounted IBCS integrated collaborative environments (ICE), two hosted IBCS ICEs, 14 mounted IBCS integrated fire unit modification kits, 35 launcher-integrated network kits, and a host of related equipment.
The State Department has declared "an emergency exists that requires the immediate sale to Kuwait of the above defense articles." As a result, it's almost certain the sale will be approved.
What investors need to know
Northrop Grumman (NYSE: NOC), RTX Corporation (NYSE: RTX), and Lockheed Martin (NYSE: LMT) were named the principal contractors on the $2.5 billion arms deal, but according to its website, Northrop is the prime contractor on ICBS. The bulk of these funds will likely go to Northrop, with RTX and Lockheed serving as subcontractors.
For investors in Northrop, this is very good news indeed.
Northrop's Mission Systems division builds IBCS centers, and according to data from S&P Global Market Intelligence, Mission Systems is by far Northrop's most profitable business unit. Last year, Northrop MS generated a superb 14.6% operating profit margin. In contrast, RTX and Lockheed average operating margins closer to 12% and 9%, respectively -- and so would earn far less profit on this contract. Even better (from an investor's perspective), Northrop's low 17.1 price-to-earnings ratio makes it arguably the cheapest of the three defense contractors to invest in.
Granted, with $42.4 billion in annual sales, even winning the bulk of a $2.5 billion defense contract might not move the needle much on a stock as large as Northrop -- but every little bit helps.
Should you buy stock in Northrop Grumman right now?
Before you buy stock in Northrop Grumman, consider this:
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends RTX. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Iran War Fallout: Kuwait Hires 3 Pentagon Contractors to Build It a $2.5 Billion Defense System

RTX Corporation RTX continues to strengthen its long-term revenue outlook through a massive backlog position that reflects sustained demand across its commercial aerospace and defense businesses. As of March 31, 2026, RTX’s backlog stood at approximately $271 billion, highlighting the company’s strong order visibility and long-duration program exposure across multiple end markets.
RTX benefits from a diversified business structure spanning Collins Aerospace, Pratt & Whitney and Raytheon. Its operations cover commercial aerospace, aircraft engines, missile systems, sensors, communications and space technologies, helping the company maintain a balanced revenue mix across multiple end markets. This broad exposure reduces reliance on any single business area while supporting stable long-term growth. RTX also continues to see healthy demand from both domestic and global customers. During first-quarter 2026, the company generated nearly $7.97 billion in U.S. government sales and about $1.78 billion in foreign military sales, reflecting strong demand for its aerospace and defense offerings worldwide.
RTX also benefits from recurring revenues tied to aftermarket services, maintenance and long-term defense contracts. Growing global air traffic, modernization efforts across military fleets and continued investments in advanced defense systems are supporting demand for its products and services.
Another key strength is RTX’s international exposure. The company continues to benefit from rising defense spending globally and increasing demand for advanced aerospace technologies. With a strong installed base, multi-year contracts and a large backlog supporting future deliveries, RTX remains well-positioned to generate stable long-term revenues.
Companies With Strong Aerospace & Defense Backlogs
As aerospace and defense demand remains healthy, companies are focusing on expanding their backlog positions to support future revenue visibility. Companies like Lockheed Martin Corporation LMT and Northrop Grumman Corporation NOC are also benefiting from strong order pipelines.
Lockheed Martin reported a backlog of roughly $186.4 billion as of March 31, 2026, supported by fighter aircraft, missile systems and classified defense programs.
Northrop Grumman reported a backlog of nearly $95.6 billion as of March 31, 2026, backed by demand for missile defense, space systems and strategic deterrence programs.
Earnings Estimates for RTX
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 9.86% and 8.98%, respectively.
Image Source: Zacks Investment Research
RTX Stock Trading at a Discount
RTX is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 2.46X compared with the industry average of 2.52X.
Image Source: Zacks Investment Research
RTX Stock Price Performance
In the past year, RTX shares have rallied 29.7% compared with the industry’s 4.3% growth.
Image Source: Zacks Investment Research
RTX’s Zacks Rank
RTX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can RTX's Massive Backlog Support Long-Term Revenue Growth?

Key Points
Rocket Lab will partner with RTX to build space-based interceptor missiles for the Golden Dome missile shield.
Rocket Lab is already a prime contractor on Golden Dome's predecessor program.
Rocket Lab also has rockets with which to put missile defense satellites in orbit.
By now you've heard the news: Golden Dome, President Trump's $151 billion plan to build a satellite-based missile shield over America, has been expanded with the award of a $3.2 billion umbrella contract to develop a system of "space-based interceptor" missiles, or SBIs, to shoot down hostile missiles.
All the big names in U.S. defense -- General Dynamics (NYSE: GD), Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), RTX Corporation (NYSE: RTX) -- will compete for contracts under the umbrella contract. One of these four has a secret weapon, though:
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What's in it for Rocket Lab?
Concurrent with its earnings report last week, Rocket Lab announced Friday that it's partnering with RTX on the latter's bid for work under the SBI contract. Considering we know already that RTX has won a place under the SBI program, it follows that Rocket Lab has, too -- at least as a subcontractor.
The attractions for Rocket Lab here are obvious. With SBI worth up to $3.2 billion for the winners, this program is worth potentially as much as 4.7 times Rocket Lab's $680 million in trailing-12-month sales, depending on how successful RTX is with its bidding. Plus, RTX has already done the heavy lifting of winning this contract.
All Rocket Lab needs now is to do the work.
Rocket Lab: RTX's hired gun
RTX arguably has even more to gain. To win SBI contracts, it must outcompete Lockheed Martin and Northrop Grumman in particular, two companies that have already won "Golden Dome" contracts under Space Force's preexisting PWSA (Proliferated Warfighter Space Architecture) missile detection-and-tracking program.
(RTX won a small number of similar contracts initially, but later withdrew from the PWSA competition.)
In Rocket Lab, however, RTX has found a partner that has won PWSA "tracking layer" satellite contracts in its own right, as a prime contractor. In a stark reversal of roles, the defense contractor is now riding the coattails of its space contractor partner.
Maybe even "riding," literally. Whereas Lockheed Martin has access to space through its joint venture with Boeing (NYSE: BA), and can launch satellites through United Launch Alliance, and Northrop Grumman can do similarly with its Antares, Pegasus, Minotaur, and soon its Eclipse rockets, RTX doesn't own a dedicated space rocket platform.
But Rocket Lab does. Its Electron rockets now send satellites into orbit several times a month. Once its Neutron rocket is ready, it'll be able to put entire satellite constellations in orbit with every launch.
This is the kind of partnership that can truly work out well for both parties involved.
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Rich Smith has positions in Rocket Lab. The Motley Fool has positions in and recommends Boeing, RTX, and Rocket Lab. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Rocket Lab Targets Missile Defense and Golden Dome as Its Next Growth Market

Key Points
Northrop Grumman had bigger revenue and EPS gains in the first quarter.
Lockheed Martin's larger backlog points to long-term sales growth.
Northrop Grumman is more competitively priced compared to its five-year average.
Northrop Grumman (NYSE: NOC) and Lockheed Martin (NYSE: LMT) are huge contractors that sit at the center of the aerospace and defense industries. Their shares have fallen by more than 20% during the past three months, despite the war in Iran and rising tensions in the Middle East.
Investors have pivoted away from pure-play aerospace and defense companies toward those with diverse revenue streams that include industrial and information technology exposure, such as Palantir (NASDAQ: PLTR) and General Dynamics (NYSE: GD). The chief reason for the drop for Northrop and Lockheed, though, is that the two are heavily tied to huge, fixed-price development programs. Both companies, though, are profitable, pay solid dividends, and remain good long-term investments. Which of these two is the better defense stock? Let's see.
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Northrop is ramping up production for the B-21 Raider
Northrop Grumman's B-21 Raider, the world's first sixth-generation stealth bomber, has moved past its most precarious financial hurdles. After years of absorbing the fixed-price development contracts, Northrop is now entering the more profitable production phase. The company said it is accelerating its production, with the first aircraft planned for delivery in 2027.
The Air Force plans to procure at least 100 B-21s, while Defense Secretary Pete Hegseth is putting the number much higher, providing Northrop with an enormous, multidecade revenue stream. As production scales, the company's expect improved margins, turning a prestige project into a significant profit driver.
Market dominance in strategic deterrence
Northrop Grumman, meanwhile, is the sole prime contractor for the LGM-35A Sentinel program, the replacement for the aging Minuteman III intercontinental ballistic missiles. This program represents the land leg of the U.S. nuclear triad and is seen as a critical defense priority. Although the program has faced scrutiny over rising costs, its crucial status ensures that Northrop will remain at the center of U.S. strategic defense for the next 50 years.
The program is in early prototypes, and production is expected to begin with the first test flights in 2027, with beginning capability expected early in the next decade. Combined, the two programs contribute to the company's order backlog of $95.6 billion.
Financial discipline and shareholder returns
Despite the capital intensity of its major programs, Northrop has maintained a strong commitment to its shareholders. The stock, at its current price, offers a dividend yield of about 1.7% and the company has a consistent history of raising payouts. As the development drag from the B-21 eases, the company's free cash flow should increase. The company often uses this cash for aggressive share repurchases, which helps bolster earnings per share (EPS) and provides a safety net for the stock price during periods of market volatility.
The company has increased its dividend payouts for 22 consecutive years, including an 11% increase in 2025. It appears well positioned to continue its increases. In the first quarter, it reported revenue of $9.8 billion, up 4% year over year, and EPS of $6.14, up 85% from the first quarter of 2025.
Lockheed has a record $186 billion backlog
The most compelling reason to own Lockheed Martin is the sheer visibility of its future revenue. As of the end of the first quarter of 2026, the company reported a backlog of $186.4 billion. This represents more than two full years of total production capacity.
Key drivers include a surge in orders for the High Mobility Artillery Rocket System (HIMARS), with new partnerships recently signed in Eastern Europe, and high demand for Lockheed's PAC-3 and Terminal High Altitude Area Defense (THAAD) missile interceptors, which remain at historic highs as nations prioritize air sovereignty. The U.S. government, in April, signed a $4.7 billion contract for PAC-3 missile segment enhancement with Lockheed. This follows a January deal to quadruple production of THAAD missile interceptors.
The F-35 moat and sustainment pivot
The F-35 Lightning II remains the central pillar of Lockheed's Aeronautics segment. The U.S. Defense Department budget for 2026 is calling for 85 new F-35s, up from 47 in fiscal 2026.
With roughly 1,300 F-35s now operational worldwide, Lockheed is transitioning from being just a manufacturer to a long-term service provider. As the fleet ages, the high-margin revenue from maintenance, software upgrades, and pilot training will likely provide a more stable and profitable earnings stream than initial hardware sales.
In the first quarter, Lockheed's sales were little changed, up less than 1% at $18 billion, and its EPS of $6.44 fell about 12% from the same period a year ago. Full-year projections for revenue were between $77.5 billion and $80 billion, up 5% at the midpoint, while full-year EPS was estimated to be between $29.35 and $30.25, up 39% at the midpoint.
Reliable shareholder returns and valuation
Lockheed Martin has raised its dividend for 23 consecutive years, including a 4.5% bump in 2025 to $3.45 per share, for a yield of 2.7% at its current share price. The stock is trading at 25 times earnings, higher than Northrop Grumman's 17, but still attractive considering management's projected EPS growth of 18% during the next three to five years.
The better stock depends on the investor
Lockheed Martin offers a higher dividend yield and a significantly larger backlog. However, its P/E ratio is higher than Northrop's, reflecting the market's growth premium for its F-35 dominance and expanding missile defense framework.
Northrop Grumman offers a compelling value alternative, with a lower P/E ratio, suggesting it may be undervalued relative to its historical performance and peers. Although its backlog is smaller than Lockheed's, Northrop boasts a superior net profit margin. Although its 1.67% dividend yield is lower than Lockheed's, Northrop's lower payout ratio of 29% and higher dividend growth rate (10% compound annual growth rate over three years) suggest more room for future aggressive payout increases.
Ultimately, Lockheed Martin appears better positioned for investors seeking stability and income, as its sheer scale and the moat of its missile programs provide a robust cushion against volatility. Northrop Grumman is likely the better choice for value-oriented investors focused on long-term appreciation, especially as it transitions its next-generation stealth and space platforms into more profitable production phases.
Should you buy stock in Northrop Grumman right now?
Before you buy stock in Northrop Grumman, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Northrop Grumman wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,205!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,384,459!*
Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 15, 2026.
James Halley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Defense Stock Face-Off: Northrop Grumman vs. Lockheed Martin -- Which Is the Better Buy Right Now?

Key Points
Intuitive Machines and Firefly Aerospace have both surged since SpaceX's IPO was confirmed for this year.
Firefly's main challenge is that it competes directly with SpaceX as a rocket company.
Intuitive Machines is locking down new NASA contracts regularly and has much more experience with spacecraft than Firefly.
The rally in space stocks in the wake of SpaceX announcing its initial public offering (IPO) last month has proved that the space economy has some real weight to it.
What began as a rally in a few stocks when the news of the IPO dropped has continued over the past few weeks. But the SpaceX IPO is still a few months away, slated for July 2026 at present.
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So, I think it's worth examining a couple of the space stocks that have been rallying since March to see if they're worth adding to your portfolio ahead of any shares of SpaceX you might want to buy.
Let's take a look at Firefly Aerospace (NASDAQ: FLY) and Intuitive Machines (NASDAQ: LUNR). Both companies have potential, but right now Intuitive Machines seems the stronger of the two.
Fly me to the moon
Firefly Aerospace led the initial rally when SpaceX's IPO news dropped. Firefly itself had gone public only a few months prior in August 2025.
Both Firefly and Intuitive Machines are spacecraft companies, and there is some overlap between their products. Let's start with the biggest difference: Firefly makes its own rockets; Intuitive Machines does not.
Firefly offers two rocket platforms. Its Alpha is the only operational U.S. launcher with a one-ton capacity and the first commercial rocket to launch a satellite into orbit with just 24 hours' notice.
Its Eclipse, which the company is developing with Northrop Grumman, has yet to be launched, but it is designed with reusability in mind.
The company also produces the Blue Ghost, which is the first commercial lunar lander to touch down on the moon, and three satellite platforms dubbed the Dawn, Dusk, and Dark based on how deep into space they're meant to operate.
In all, Firefly has had four successful orbital launches with the Alpha rocket out of seven attempts. Add in the success of the Blue Ghost mission for a total of five successful missions in all, about a 71% success rate.
That's great, but it's also the company's main weakness: It's competing directly with SpaceX. The Eclipse is designed with reusability in mind, but only SpaceX's Falcon 9 has proved it can reliably land and be reused.
SpaceX has also had 654 successful launches out of 666 for a success rate of 98.2%. It has already had 56 launches in 2026 alone.
While nobody really has the space-launch market locked down yet, SpaceX is the clear leader in the U.S. for private spaceflight. So, when you add in Firefly's negative 181% margin in the 2026 first quarter as measured under earnings before interest, taxes, depreciation, and amortization (EBITDA), it becomes a much tougher sell given the track record of its main competitor.
Intuitive Machines, on the other hand, is more focused on building infrastructure in space than building its own rockets.
To the moon and beyond
Intuitive Machines bills itself as The Space Infrastructure Company, and I think that's a fair assessment.
It designs and manufactures probes, satellites, and cargo spacecraft for low-earth orbit, geostationary orbit, and the Artemis missions to the moon and beyond. The company's IM-1 probe, Odysseus, became the first object to land on the moon since Apollo 17 in 1972.
In all, the company has launched 300 spacecraft and has 100 satellites in orbit right now. And through its subsidiary KinetX, it provides navigation services for deep-space exploration.
KinetX is responsible for all the navigation on the Emirates Mars Mission, a United Arab Emirates effort that put a satellite called Hope into orbit around the red planet, where it's collecting atmospheric data. The company is also behind the navigation of NASA's New Horizons mission to Pluto, which took almost 10 years to complete.
Closer to Earth, Intuitive Machines was selected by NASA in March to support the Artemis missions by delivering science equipment to the moon using its Nova-D heavy lander.
And the company is in the running to provide a lunar rover to the Artemis missions. No rover has been selected, but Intuitive is one of three companies under consideration for the contract.
So it has more experience with satellites and lunar missions than Firefly, and it doesn't compete directly with the most visible space company in the world right now, which also happens to be the most hotly anticipated IPO in decades.
Lastly, while neither company is profitable, Intuitive Machines is closer to profitability than Firefly with a net EBITDA margin of negative 53.43% last year. Intuitive does have a much higher debt load than Firefly, with a total debt-to-equity ratio of 1.83 last year to Firefly's 0.05 in the 2026 first quarter. It has a much lower loss margin as well.
It will likely be a while before most space companies turn a profit, but Intuitive is much closer to running a net profit than Firefly. So, if you're looking for a space stock to add to your portfolio in anticipation of the SpaceX IPO, Intuitive Machines makes a decent case for itself.
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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intuitive Machines wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,205!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,384,459!*
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James Hires has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuitive Machines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Better Space Stock: Firefly Aerospace vs. Intuitive Machines

Intuitive Machines, Inc. LUNR shares have risen 124.2% in the past three months, outperforming the Zacks Aerospace-Defense industry’s decline of 11.2%. The company benefits from its key role in NASA’s Artemis missions, with expanding opportunities tied to lunar transportation, communications services and space infrastructure projects.
Image Source: Zacks Investment Research
Shares of other defense companies, such as Lockheed Martin LMT and Northrop Grumman NOC, have declined 20.3% and 21.5%, respectively, over the past three months. Lockheed Martin serves as the prime contractor for NASA’s Orion spacecraft, playing a foundational role in the Artemis program by designing, building and testing the capsule that carries astronauts to the Moon and beyond. Northrop Grumman has a strong presence in Air Force, Space & Cyber Security programs, with its product line being well-positioned in high-priority categories, such as defense electronics, unmanned aircraft and missile defense.
Considering LUNR’s outperformance relative to its industry, investors may be wondering whether now is a good time to add the stock to their portfolios. Let’s examine the factors driving the recent share price gains and assess the company’s investment prospects to make a more informed decision.
Factors Acting in Favor of LUNR Stock
The company reported fourth-quarter 2025 results on March 19, 2026. The company generated $44.8 million in revenues during the quarter, driven primarily by Commercial Lunar Payload Services, Omnibus Multidiscipline Engineering Services III and Near Space Network Services programs. It continues to pursue near-term contract opportunities, including NASA’s Lunar Terrain Vehicle Services and the next Commercial Lunar Payload Services award. LUNR continued progressing toward profitability, reporting a positive gross margin of 19% in the fourth quarter.
In February 2026, Intuitive Machines announced a $175 million strategic equity investment led by global institutional investors. The investment positions the company to evolve from primarily a lunar lander provider into a broader space infrastructure company with recurring, higher-margin revenue streams. This will also help the company expand satellite communications, orbital data processing, and deep-space networking capabilities through its recently acquired Lanteris Space Systems platforms.
It also benefits from major long-term government programs, such as NASA’s Artemis missions, lunar communications networks, missile-defense initiatives like Golden Dome, and future Mars relay systems.
LUNR completed the $800 million acquisition of Lanteris Space Systems to become a vertically integrated next-generation space contractor serving commercial, civil, and national security markets. The company also acquired KinetX to strengthen its deep-space navigation, constellation management, and secure data relay capabilities from the Moon to Mars. Operationally, Intuitive Machines advanced its role in the Space Development Agency’s Proliferated Warfighter Space Architecture program by supporting the Tranche 3 tracking layer, beginning production for Tranche 2, and completing deliveries for Tranche 1.
LUNR also secured a major position on the Missile Defense Agency’s SHIELD IDIQ contract, which carries a ceiling value of $151 billion and is intended to accelerate the deployment of advanced defense technologies for military operations.
Estimates for LUNR Stock
The Zacks Consensus Estimate for Intuitive Machines’ 2026 earnings per share (EPS) has risen 33.3% over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Lockheed Martin’s 2026 EPS has risen 0.03% over the past 60 days. The Zacks Consensus Estimate for Northrop Grumman’s 2026 EPS has declined 0.39% over the past 60 days
LUNR’s Earnings Surprise History
The company’s earnings missed estimates in three of the trailing four quarters and met in the other, delivering an average negative surprise of 58.33%.
Image Source: Zacks Investment Research
LUNR Stock’s Liquidity
The company’s current ratio is 4.96 compared with the industry’s average of 1.13. The ratio of more than one suggests a healthy liquidity position where the business can meet its immediate financial obligations without selling long-term assets.
Image Source: Zacks Investment Research
LUNR Stock Trades at a Premium
In terms of valuation, LUNR’s forward 12-month price-to-sales (P/S) is 8.11X, a premium to the industry’s average of 2.49X. This suggests that investors will be paying a higher price than the company's expected sales growth compared with its peer group.
Image Source: Zacks Investment Research
What Should an Investor Do Now?
Intuitive Machines delivered strong operational progress driven by lunar services, space-networking programs, and expanding government partnerships, while continuing to improve profitability and pursue major upcoming NASA and defense opportunities. The company is also transforming into a broader space infrastructure and defense contractor through strategic investments and acquisitions.
Given its premium valuation, new investors may wait for a better entry point. Investors who already own this Zacks Rank #3 (Hold) stock may consider retaining their position, supported by the company’s strong earnings growth outlook and strong liquidity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

LUNR Stock Rises 124% in 3 Months: Is There More Upside Ahead?

Rocket Lab Corporation RKLB is gradually building a stronger presence in the hypersonic testing market through its HASTE launch vehicle. Built from the company’s Electron rocket technology, HASTE is designed for suborbital missions that support the testing of advanced aerospace and defense systems. As global defense programs increasingly focus on hypersonic technologies, the need for responsive and reliable flight-testing platforms continues to rise.
One factor supporting Rocket Lab’s position is its existing launch experience and operational infrastructure. Since HASTE is derived from Electron, the company can leverage technologies, launch operations and engineering expertise already developed through its orbital launch business. This allows Rocket Lab to provide a testing platform that benefits from an established flight heritage while supporting rapid mission execution and flexible launch timelines.
The HASTE program also helps Rocket Lab broaden its role beyond satellite launches. Hypersonic development programs require repeated testing, data collection and validation activities, creating demand for platforms capable of supporting high-frequency missions. By entering this market, Rocket Lab is expanding its exposure to defense-related opportunities while making broader use of its launch technologies and infrastructure.
As hypersonic systems become more important in future defense planning, Rocket Lab’s HASTE platform could help strengthen its long-term growth prospects and deepen relationships with government and defense customers.
Companies Advancing Hypersonic Test Capabilities
Rising defense interest in high-speed systems is driving demand for flight-test platforms and supporting technologies. Companies like Kratos Defense & Security Solutions, Inc. KTOS and Northrop Grumman Corporation NOC are also active in this area.
Kratos Defense develops hypersonic systems, rocket motors and test platforms while expanding propulsion capabilities for future high-speed defense programs.
Northrop Grumman works on propulsion, missile systems and advanced technologies supporting hypersonic flight and national security missions.
Earnings Estimates for RKLB Stock
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests massive year-over-year growth of 62.96% and 156.67%, respectively.
Image Source: Zacks Investment Research
RKLB Stock Trading at a Premium
Rocket Lab is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 72.17X compared with the industry average of 12.03X.
Image Source: Zacks Investment Research
RKLB Stock Price Performance
Over the past year, RKLB shares have surged 388.4% compared with the industry’s 24.7% growth.
Image Source: Zacks Investment Research
RKLB’s Zacks Rank
Rocket Lab currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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Can Rocket Lab's HASTE Launch Vehicle Support Long-Term Expansion?

Kratos Defense & Security Solutions, Inc. KTOS is strengthening its position in the space and satellite communications market by expanding software-based ground systems and related technologies. As satellite networks become more complex and data-driven, demand is increasing for flexible and scalable ground infrastructure that can support modern space operations. Kratos Defense is positioning itself to address these evolving requirements through internally developed technologies and continued investments in next-generation systems.
A major part of this strategy is the company’s OpenSpace platform, which is designed to virtualize satellite command, control and communication operations. Unlike traditional hardware-heavy architectures, software-defined systems can improve flexibility, simplify upgrades and support more efficient network management. This approach helps customers adapt more quickly to changing mission needs while supporting broader satellite connectivity requirements.
Kratos Defense is also benefiting from rising demand for satellite communications, space domain awareness and ground-based command-and-control systems. The company has secured several contracts tied to these capabilities, supporting both government and commercial customers. Its investments in software development, virtualized systems and secure communications infrastructure are helping strengthen its position in the growing space communications market.
As governments and commercial operators continue expanding satellite deployments, reliable and scalable ground systems are becoming increasingly important. Kratos Defense’s focus on software-based satellite communications and space infrastructure positions it to benefit from these long-term industry trends.
Companies Expanding Space Communications Capabilities
The defense industry is increasingly investing in software-driven satellite networks and advanced ground infrastructure to support secure communications, space operations and growing data requirements. Companies like L3Harris Technologies, Inc. LHX and Northrop Grumman Corporation NOC are also expanding capabilities in this area.
L3Harris Technologies develops satellite communication systems, mission networks and space-based technologies supporting defense and national security operations.
Northrop Grumman focuses on satellite systems, secure communications and ground infrastructure technologies that aid space and defense missions.
Earnings Estimates for KTOS Stock
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 40% and 37.48%, respectively.
Image Source: Zacks Investment Research
KTOS Stock Trading at a Discount
Kratos Defense is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 5.39X compared with the industry average of 12.03X.
Image Source: Zacks Investment Research
KTOS Stock Price Performance
Over the past year, Kratos Defense shares have rallied 52.7% compared with the industry’s 24.7% growth.
Image Source: Zacks Investment Research
KTOS’ Zacks Rank
Kratos currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How Is Kratos Defense Expanding Its Space Communications Business?

Key Points
U.S. Space Force named 12 companies to compete for $3.2 billion in new Golden Dome contracts.
The new contracts will hire companies to build space-based interceptors to intercept missile attacks.
SpaceX, Lockheed Martin, Northrop Grumman, and RTX Corp. are likely winners.
"The threat of attack by ballistic, hypersonic, and cruise missiles, and other advanced aerial attacks, remains the most catastrophic threat facing the United States."
-- President Donald Trump, Executive Order 14186
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EO 14186, published Jan. 27, 2025, inaugurated the concept of building an "Iron Dome for America" -- soon rebranded as the Golden Dome. It called for the construction of a next-generation missile defense shield to "deter ... any foreign aerial attack on the Homeland," and in particular for accelerating work on the U.S. Space Force's Proliferated Warfighter Space Architecture missile defense program comprising one set of satellites to track missile launches, and a second set of satellites to relay data from missile launches to defense systems on the ground.
But EO 14186 contained one other element that PWSA lacked: a set of satellites in orbit armed with missiles to shoot down attacking missiles.
That is to say, PWSA lacked this...until now.
Golden Dome gets a gun
To fill that gap in the system and supplement America's ground-based missile defense interceptors, Space Force announced late last month that it's awarding $3.2 billion in defense contracts to a team of space companies to build space-based interceptors (SBIs) for Golden Dome.
12 companies were named to receive contracts:
Anduril Industries
Gitai USA
Quindar
SpaceX
True Anomaly
Turion Space Corp.
Now this list probably includes a few names you've never heard of before. (That's to be expected. Space Force specifically stated that it aimed to attract "both traditional and non-traditional vendors" to this effort.)
Among the private companies, there's Gitai, a start-up developer of space robotics; Quindar, a specialist in mission management software; True Anomaly, the self-proclaimed "only defense technology company focused exclusively on space defense"; and space infrastructure company Turion.
Quite a cast of characters. We don't know precisely what technology attracts Space Force to them -- and Space Force isn't telling, citing "operational security requirements."
More familiar, not-yet-public names include Anduril, an up-and-coming defense contractor well-versed in using artificial intelligence to guide missiles and drones, which might go public soon. And of course, there's SpaceX, the 800-lb. gorilla of space, which definitely is going public. As the incumbent provider of Starshield defense satellites to the Pentagon, you have to assume that SpaceX will win a good portion of the $3.2 billion for itself.
Golden Dome stocks you can buy today
Granted, you probably can't invest in SpaceX until the IPO, so consider the "usual suspects" instead. Fully half the names on the list are already publicly traded stocks that you can invest in today. At least two of them that I know of, Lockheed Martin and Northrop Grumman, have already won PWSA contracts to build "tracking layer" satellites under PWSA. And we recently learned that a third awardee of tracking layer contracts, Rocket Lab (NASDAQ: RKLB), is partnering with RTX Corporation on its SBI contract.
While none of the companies on this list are guaranteed to win big contracts under the $3.2 billion SBI umbrella program, it would make sense to assume this gives each of Lockheed, Northrop, and RTX a leg up once the contracts begin being awarded.
Which of the three would I choose? It's really no contest. Among Lockheed, Northrop, and RTX, Lockheed Martin boasts the lowest price-to-earnings ratio (15.8 times earnings), the lowest price-to-sales ratio (1.6 times sales), and also the fastest projected earnings growth rate over the next five years (18.5%, according to data from S&P Global Market Intelligence).
If I were making a bet on a defense stock to profit from President Trump's upgraded Golden Dome missile defense shield, I'd put Lockheed Martin stock at the top of my shopping list.
Should you buy stock in Lockheed Martin right now?
Before you buy stock in Lockheed Martin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lockheed Martin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 11, 2026.
Rich Smith has positions in Rocket Lab. The Motley Fool has positions in and recommends RTX and Rocket Lab. The Motley Fool recommends Booz Allen Hamilton and Lockheed Martin. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.