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
Gold price holds above $3,200; bullish bias remains amid trade uncertaintyGold price (XAU/USD) attracts some dip-buyers following the previous day's modest pullback from the record high and trades comfortably above the $3,200 mark during the Asian session on Tuesday.
Author  FXStreet
4 Month 15 Day Tue
Gold price (XAU/USD) attracts some dip-buyers following the previous day's modest pullback from the record high and trades comfortably above the $3,200 mark during the Asian session on Tuesday.
placeholder
Bitcoin Must Clear This Critical Cost Basis Level For Continued Upside, Analyst SaysIn a recent CryptoQuant Quicktake post, contributor Crazzyblockk highlighted key Bitcoin (BTC) cost basis zones that the leading cryptocurrency must clear – or avoid breaking below – to
Author  NewsBTC
4 Month 23 Day Wed
In a recent CryptoQuant Quicktake post, contributor Crazzyblockk highlighted key Bitcoin (BTC) cost basis zones that the leading cryptocurrency must clear – or avoid breaking below – to
placeholder
Tron Price Forecast: Tether’s USDT supply on Tron surpasses $80 billionTron (TRX) stabilizes around $0.270 at the time of writing on Tuesday, following a 3.5% recovery the previous day.
Author  FXStreet
6 Month 24 Day Tue
Tron (TRX) stabilizes around $0.270 at the time of writing on Tuesday, following a 3.5% recovery the previous day.
placeholder
Ethereum Price Tests Resistance — Breakout Could Spark RallyEthereum price started a fresh increase above the $2,480 zone. ETH is now consolidating gains and might soon aim for a move above the $2,520 resistance. Ethereum started a fresh upward move above the
Author  NewsBTC
6 Month 30 Day Mon
Ethereum price started a fresh increase above the $2,480 zone. ETH is now consolidating gains and might soon aim for a move above the $2,520 resistance. Ethereum started a fresh upward move above the
placeholder
Strong Ethereum Accumulation Detected: LTH Buying Heavy During June ConsolidationEthereum is trading above $2,400 after enduring several days of volatility and uncertainty. The price has managed to stabilize despite sharp intraday swings, reflecting growing tension between
Author  NewsBTC
3 hours ago
Ethereum is trading above $2,400 after enduring several days of volatility and uncertainty. The price has managed to stabilize despite sharp intraday swings, reflecting growing tension between
goTop
quote