Its only real competition in the big airplane market is Airbus, a joint venture by several European aerospace companies. There used to be a third airplane maker, McDonnell Douglas. But Boeing acquired that firm back in 1997. Even though the airplane manufacturing business has been consolidating, Boeing got walloped during the Asia crisis last year as Asian airlines started postponing their orders. The important point here is that a company doesn't have to have recovered fully for its depressed stock to perk up.
Investors just have to be confident that they know the worst.
The result has been a mess. Lockheed has had serious problems meshing its acquisitions and is getting ready to sell off peripheral businesses. To make matters worse, Congress is now debating whether to cut back or kill production of Lockheed's F-22 Stealth fighter. That could disrupt Lockheed just as it begins to get its act together. But for long-term investors, none of that really matters.