Lockheed Martin (LMT, Financial) shares experienced a decline of 5.14%, reflecting a drop in the stock price to $452.40. This downturn followed the announcement that the U.S. Pentagon is reducing its budget request for new F-35 stealth fighter jets in fiscal year 2026.
The U.S. Defense Department's request was lowered to 24 F-35 planes from the previously projected 48, representing a $3.5 billion reduction in expected payments for the current year's aircraft orders. The cuts primarily target the Air Force’s F-35A model, with the Navy’s F-35Cs and the Marine Corps’ F-35Bs also facing reduced orders. Despite this setback, Lockheed Martin remains well-positioned for future contracts, potentially tapping into the development of the F-55 and advanced F-22 models.
In terms of stock evaluation, Lockheed Martin (LMT, Financial) holds a GF Value of $532.42, indicating that the stock is modestly undervalued. The company's GF Score stands at 83, which is considered good within its industry. Lockheed Martin's price-to-earnings (PE) ratio at 19.54 is close to a 2-year high, suggesting a potential overvaluation from a short-term perspective. However, the company's strong fundamentals, such as a robust Altman Z-score of 3.44, highlight its financial stability. Investors can also look at Lockheed Martin's dividend yield, which is close to a 3-year high, offering an attractive opportunity for income-focused investors.
Despite the current challenges, Lockheed Martin (LMT, Financial) remains a leader in the Aerospace & Defense sector, with robust future growth potential. For an in-depth evaluation, visit the GF Value page.
