Investors Sound the Retreat on Lockheed Martin Stock (LMT) as the Pentagon Cuts Spending
Lockheed Martin (LMT) stock took a beating on Wednesday after the Pentagon reportedly cut its F-35 jet orders in half this year. The latest reports claim that the Air Force has only requested 24 of these jets from the aerospace and defense company, compared to 48 last year.
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
It's not just the Air Force that wants fewer of Lockheed Martin's F-35 jets. The reports also claimed that the Navy has only requested 12 jets, despite approval for 17 of them. The Marines are also expected to seek fewer of the jets this year.
This is bad news for Lockheed Martin stock, as the F-35 business make up roughly 30% of the company's revenue. Strong demand in 2024 resulted in 110 units being sold, but lower orders from the U.S. will likely cut into the company's revenue this year.
LMT Stock Movement Today
The reports of reduced F-35 requests weighed on LMT stock today, sending the company's shares 6.04% lower as of this writing. This builds on the stock's 6.42% decline year-to-date and eats away at its 3.87% increase over the past 12 months.
LMT stock also saw heavy trading today, with more than 1.42 million shares exchanged. That's above its three-month daily average trading volume of about 1.22 million units, signaling a potential selloff by investors.
Is Lockheed Martin Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts' consensus rating for Lockheed Martin is Moderate Buy, based on seven Buy and eight Hold ratings over the past three months. With that comes an average LMT stock price target of $521.07, representing a potential 16.05% upside for the shares.
Spark, TipRanks' AI analyst, rates Lockheed Martin an Outperform (77) with a $532 price target, suggesting an 18.55% upside for LMT shares. It cites 'consistent revenue growth and strong cash flow management' as positives for the stock.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
15 minutes ago
- Yahoo
Is Ford Pro Unit Doing the Heavy Lifting for the Company's Growth?
U.S. auto giant Ford Motor Company F runs three business segments — Ford Pro, Model e and Ford Blue. On its latest earnings release, Ford Pro clocked $1.3 billion EBIT. Ford Blue reported $96 million EBIT, a slump from the prior-year quarter's $901 million, losing significant momentum. The Model e segment could not break its streak of continuous losses. Thus, Ford Pro has proven to be the only competitive advantage in Ford's stride. The Ford Pro segment offers products and services to its commercial customers, including small businesses, fleet operators and government agencies. The lineup of customer favourites, such as F-150, Transit Van, Super Duty, Maverick, makes it a strong product-driven segment. Ford also provides additional services like fleet management and financing options to its customers. Ford Pro currently holds 40% market share in North America and aims to maintain EBIT margins in the mid-teens. The segment has around 675,000 paid software subscriptions, with strong ARPU growth driving incremental revenues. Software services also serve as a countercyclical measure for the segment. Ford Pro plans to emerge as a growth engine by accompanying traditional automotive services with software-defined vehicles and connected services to fleet customers. The sustainable methods adopted in this segment, while also ensuring capital efficiency, have provided Ford with a firm foundation and improved capabilities. Its remaining segments now plan on following Ford Pro's footsteps to revive operations. As of now, Ford Pro remains a segment of high strategic importance. Some other stocks in the Auto space are Tesla, Inc. TSLA and General Motors Company GM. Shares of Ford have lost around 2% over the past year against the industry's growth of 22.9%. Its peers, General Motors and Tesla, have gained 7.7% and 83.3%, respectively, over the same period. Image Source: Zacks Investment Research From a valuation standpoint, F trades at a forward price-to-sales ratio of 0.26, below the industry average. It carries a Value Score of A. In comparison to this, General Motors and Tesla trade at 0.28 and 9.48, respectively, with a Value score of A and F. Image Source: Zacks Investment Research Take a look at how Ford's EPS estimates have been revised over the past 30 days. Image Source: Zacks Investment Research Ford stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
24 minutes ago
- Business Insider
William Blair Sticks to Its Buy Rating for RH (RH)
William Blair analyst Phillip Blee maintained a Buy rating on RH (RH – Research Report) today. The company's shares closed today at $189.12. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Blee covers the Consumer Cyclical sector, focusing on stocks such as RH, Costco, and Traeger. According to TipRanks, Blee has an average return of 7.1% and a 55.00% success rate on recommended stocks. Currently, the analyst consensus on RH is a Moderate Buy with an average price target of $268.47, which is a 41.96% upside from current levels. In a report released today, Wells Fargo also maintained a Buy rating on the stock with a $275.00 price target. Based on RH's latest earnings release for the quarter ending February 1, the company reported a quarterly revenue of $812.41 million and a net profit of $13.92 million. In comparison, last year the company earned a revenue of $738.26 million and had a net profit of $11.38 million
Business Insider
24 minutes ago
- Business Insider
Stock Market News Review: SPY, QQQ Drop amid Israel-Iran Escalation, VIX Surge
Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) closed the Friday trading session down by over 1% as the Israel-Iran conflict has escalated with Iran striking back at Israel. Rising geopolitical uncertainty benefits the Volatility Index (VIX), which finished with a sharp 19.7% jump. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter This morning, President Trump said that Israel's attack on Iran could actually benefit the market. 'I think ultimately, it would be great for the market because Iran will not have a nuclear weapon,' said Trump in an interview with the Wall Street Journal. 'It will be great for the market —should be the greatest thing ever for the market. Iran won't have a nuclear weapon that was a great threat to humanity.' On Truth Social, Trump urged Iran to sign a deal that would end its nuclear program. Crude oil futures jumped by about 7% today as the conflict threatens disruptions to the Strait of Hormuz, which acts as a passage for nearly 20% of global oil shipments. To increase domestic production, Trump wants U.S. oil refiners to blend an all-time high of 24.02 billion gallons of biofuel into conventional fuels in 2026. Biofuels are an alternative to fossil fuels that are created from organic matter, like algae and crops. Meanwhile, consumer sentiment is on the rise, erasing six months of consecutive drops. The University of Michigan's preliminary June Index of Consumer Sentiment tallied in at 60.5, beating the estimate for 53.5 and rising from 52.2 in May. Year-ahead and long-run inflation expectations also fell. Still, consumers remain worried about the stock market, the labor market, and business conditions, with confidence levels in these areas well below where they were six months ago. On the trade front, UK Prime Minister Keir Starmer said that the U.S. and UK have made progress in reaching a final trade deal, saying 'There's nothing unexpected in the implementation, and so we haven't got any hiccups or obstacles.' The S&P 500 ended the week with a 0.41% loss while the Nasdaq 100 fell by 0.57%.
