Why Lockheed Martin Stock Is Down Today

Source Motley_fool

Wall Street is reacting to last week's news that Lockheed Martin (NYSE: LMT) has lost the battle to produce the Air Force's next-generation fighter. The commentary is putting new pressure on Lockheed Martin shares, sending the stock down about 3% as of 10:30 a.m. ET.

An unexpected loss

Lockheed is the world's largest pure-play defense contractor, and for decades has been the undisputed leader in fighter technologies. The company won the last two major Pentagon fighter competitions, producing what is now called the F-22 Raptor and the F-35 Joint Strike Fighter.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

But that streak ended on Friday, when the Air Force selected Boeing to produce its sixth-generation fighter. Boeing won an initial $19 billion contract to fund continued research and development of the plane, which could produce upward of $250 billion in revenue for Boeing and its subcontractors in the decades to come.

With Northrop Grumman favored to beat out Lockheed Martin in a separate U.S. Navy fighter competition, Lockheed could soon be left with only the F-35 in production. (The new plane Boeing will develop will replace the F-22.)

Lockheed Martin was considered by many market watchers to be the favorite to win at least one of those deals. On Monday, the stock was downgraded to hold from buy at several investment banks.

Is Lockheed Martin a buy?

Lockheed is still likely to get F-35 revenue for decades, and the company has plenty of other helicopter, missile, and electronics programs to keep sales coming in. But the loss eliminates the most obvious near-term catalyst to get the stock moving higher and could leave the shares range-bound for some time.

This is still an impressive franchise, and the talk of a new U.S. missile defense system could over time be nearly as lucrative to Lockheed Martin as the new fighter would have been. But the defense system is just talk for now, and we are unlikely to see anything concrete in the quarters to come.

For those willing to wait out the lull, Lockheed does offer a dividend yielding 3% after its fall. But there is no reason for investors to rush in to take advantage of this decline.

Should you invest $1,000 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 Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $721,394!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of March 24, 2025

Lou Whiteman has positions in Lockheed Martin. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ripple’s $21 Trillion Dream: What Capturing 20% Of SWIFT Volume Means For XRPRipple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
Author  NewsBTC
7 Month 14 Day Mon
Ripple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
placeholder
Ethereum Price Momentum Explodes—Is the Path to $4K Wide Open?Ethereum price started a fresh increase above the $3,750 zone. ETH is now showing bullish signs and might continue to rise toward the $3,950 zone. Ethereum started a fresh increase above the $3,750
Author  NewsBTC
7 Month 22 Day Tue
Ethereum price started a fresh increase above the $3,750 zone. ETH is now showing bullish signs and might continue to rise toward the $3,950 zone. Ethereum started a fresh increase above the $3,750
placeholder
Oil Prices Rise on Sharp U.S. Inventory Drop; Trade Deals Take Center StageOil prices edged higher during Thursday’s Asian trading session, supported by data showing a sharp drop in U.S. crude inventories, as investors cautiously awaited developments on trade agreements ahead of Donald Trump’s looming deadline.
Author  Mitrade
18 hours ago
Oil prices edged higher during Thursday’s Asian trading session, supported by data showing a sharp drop in U.S. crude inventories, as investors cautiously awaited developments on trade agreements ahead of Donald Trump’s looming deadline.
placeholder
Dollar Inches Higher as Traders Await ECB Decision and U.S. Data ReleasesThe U.S. dollar edged higher Thursday but remains at low levels, while the euro slipped ahead of the latest policy-setting meeting from the European Central Bank.
Author  Mitrade
17 hours ago
The U.S. dollar edged higher Thursday but remains at low levels, while the euro slipped ahead of the latest policy-setting meeting from the European Central Bank.
placeholder
Tesla Shares Slide as Musk Warns of Tough Quarters Ahead Amid Weaker DemandTesla (NASDAQ: TSLA) shares fell more than 5% in U.S. premarket trading on Thursday, after CEO Elon Musk cautioned investors about a potentially challenging period for the electric vehicle giant. The warning comes as the company struggles with softer consumer demand and the looming expiration of key federal tax incentives for EV buyers.
Author  Mitrade
17 hours ago
Tesla (NASDAQ: TSLA) shares fell more than 5% in U.S. premarket trading on Thursday, after CEO Elon Musk cautioned investors about a potentially challenging period for the electric vehicle giant. The warning comes as the company struggles with softer consumer demand and the looming expiration of key federal tax incentives for EV buyers.
goTop
quote