Lockheed And Boeing: Why SpaceX Hype Is Missing The Point

The upcoming SpaceX IPO has fueled a significant rerating among space stocks, but traditional aerospace and defense prime contractors have largely been left behind. While investors have poured money into emerging space companies, Boeing and Lockheed Martin have not participated in the rally. In my view, there are good reasons for that. More importantly, I believe both companies remain attractive investments despite missing the recent space-sector enthusiasm.

Why Boeing And Lockheed Missed The Space Rally

The most obvious explanation is exposure. For emerging space companies, space is the core business. For Boeing and Lockheed Martin, it is only one part of much larger operations.

Launch services also provide limited support for a rerating. United Launch Alliance, the joint venture owned by Boeing and Lockheed Martin, remains a reliable launch provider, but it lacks the cost advantages and reusability that have helped SpaceX dominate the market. As launch economics increasingly favor lower-cost providers, ULA’s competitive position has weakened.

Space Is Important, But Not Central

Space accounts for roughly 18% of Lockheed Martin’s revenue and historically represented less than 10% of Boeing’s revenue. Both companies maintain strong positions in military and commercial space programs, but neither company depends on space for its growth story.

That distinction matters because much of the recent enthusiasm surrounding SpaceX appears tied not only to launch services and satellites, but also to AI-related growth expectations.

Conclusion

I believe Boeing and Lockheed Martin remain attractive investments. Boeing continues to offer recovery-driven upside as execution improves, while Lockheed Martin’s recent selloff creates an opportunity for investors seeking exposure to defense spending growth. Neither company needs a SpaceX-style rerating to justify a Buy rating.