Why LMT Could Go Up
Defense Stocks Rally on Tensions
-LMT surged ~3–4% recently after Israel’s major strike on Iran’s nuclear facilities, similar to gains seen in other defense names like RTX and Northrop Grumman.
F-35 & Advanced Weapons in Spotlight
-Israel deployed its F‑35I Adir (built by Lockheed) in the strike, demonstrating the jet’s central role in modern military operations.
-With growing international demand for advanced fighters and missile systems, sales could accelerate.
Backlog & Contract Strength
-LMT carries a massive order backlog (~$55 billion), recently securing large contracts like Patriot missile updates and naval systems—critical as global militaries boost budgets .
Analyst Upgrades
-JPMorgan, among others, upgraded LMT to “Buy” in response to geopolitical risk benefiting defense spending.
Risks & Headwinds
Volatility is Short-Term
-Defense stocks often jump in response to geopolitical escalation but can also retreat swiftly once tensions de-escalate .
Broader Market Pressures
-While LMT benefits directly, overall markets declined (~1–2%) and oil spiked on conflict fears—this broader risk sentiment can limit long-term flows into equities .
Execution & Budget Risk
-LMT depends on consistent defense budgets. Any shifts in U.S. or allied priorities, or cost overruns, could weigh on future growth.
Valuation Uncertainty
-Even after the recent rise, LMT trades around $486, likely pricing in many upside expectations. Limited catalysts beyond ongoing conflict could constrain further gains.
-Disclaimer: This analysis is for informational and educational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Stock prices, valuations, and performance metrics are subject to change and may be outdated. Always conduct your own due diligence and consult with a licensed financial advisor before making investment decisions. The information presented may contain inaccuracies and should not be solely relied upon for financial decisions. I am not personally liable for your own losses, this is not financial advise.
Defense Stocks Rally on Tensions
-LMT surged ~3–4% recently after Israel’s major strike on Iran’s nuclear facilities, similar to gains seen in other defense names like RTX and Northrop Grumman.
F-35 & Advanced Weapons in Spotlight
-Israel deployed its F‑35I Adir (built by Lockheed) in the strike, demonstrating the jet’s central role in modern military operations.
-With growing international demand for advanced fighters and missile systems, sales could accelerate.
Backlog & Contract Strength
-LMT carries a massive order backlog (~$55 billion), recently securing large contracts like Patriot missile updates and naval systems—critical as global militaries boost budgets .
Analyst Upgrades
-JPMorgan, among others, upgraded LMT to “Buy” in response to geopolitical risk benefiting defense spending.
Risks & Headwinds
Volatility is Short-Term
-Defense stocks often jump in response to geopolitical escalation but can also retreat swiftly once tensions de-escalate .
Broader Market Pressures
-While LMT benefits directly, overall markets declined (~1–2%) and oil spiked on conflict fears—this broader risk sentiment can limit long-term flows into equities .
Execution & Budget Risk
-LMT depends on consistent defense budgets. Any shifts in U.S. or allied priorities, or cost overruns, could weigh on future growth.
Valuation Uncertainty
-Even after the recent rise, LMT trades around $486, likely pricing in many upside expectations. Limited catalysts beyond ongoing conflict could constrain further gains.
-Disclaimer: This analysis is for informational and educational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Stock prices, valuations, and performance metrics are subject to change and may be outdated. Always conduct your own due diligence and consult with a licensed financial advisor before making investment decisions. The information presented may contain inaccuracies and should not be solely relied upon for financial decisions. I am not personally liable for your own losses, this is not financial advise.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.