As Russia invaded Ukraine, an estimated 4,600 Alabama-made Javelin Anti-tank missiles were pulled from American stockpiles and sent to Ukraine. Congress expressed support to restock soon, with a $3.5 billion package being given to the Department of Defense in March.
Once new contracts are negotiated, the Pike County Operations Facility in Troy, Alabama will complete the manufacturing, final assembly, testing and storage for the new stock of Javelin missiles. Lockheed Martin is a household name in Alabama, doing business in 45 different states. This gives Lockheed Martin an advantage among lawmakers, with large Lockheed Martin contracts providing jobs to the constituents of almost every member of Congress. Lockheed Martin has significant security as a customer of the Department of Defense, and it is likely a contract will be made soon.
Additionally, ever since tensions began rising in Ukraine, the market cap of Lockheed has gained about 20% despite no new defense contracts at the time of this writing. This suggests that the market is pricing future contacts on not only missiles, but potentially other products.
