TLDR
- Shares of Lockheed Martin climbed nearly 7% in after-hours trading following the deployment of F-35s in U.S.-Israel strikes on Iranian military installations
- The F-35 fighter aircraft, manufactured by Lockheed Martin, played a central role in “Operation Epic Fury”; video footage of the jets was shared by U.S. Central Command
- Defense contractors RTX and L3Harris Technologies saw gains of nearly 6% and 5.3% respectively during the same trading period
- Earlier in the week, Lockheed conducted flight tests on an AI-powered Combat ID system integrated with F-35 information fusion technology
- The stock currently trades at a P/E multiple of 30.62, approaching its 5-year peak, while Wall Street analysts maintain a consensus target of $657.75
Shares of Lockheed Martin experienced a significant surge of nearly 7% during overnight trading hours on Sunday following a coordinated military operation by the United States and Israel against Iranian military installations, designated “Operation Epic Fury.”
Lockheed Martin Corporation, LMT
The military action, authorized by President Donald Trump in coordination with Israeli Prime Minister Benjamin Netanyahu, focused on Iranian military assets throughout the weekend.
Reports emerged that Iran’s Supreme Leader Ayatollah Ali Khamenei along with members of his family were casualties of the strikes. Tehran retaliated by deploying missiles and unmanned aerial vehicles toward Gulf states such as the UAE and Qatar.
The F-35 fighter aircraft manufactured by Lockheed played a pivotal role in executing the operation. U.S. Central Command distributed video footage and photographs via X platform depicting F-35s departing for their mission.
As Lockheed Martin’s premier aircraft platform and primary revenue generator, the F-35 represents what the defense contractor characterizes as the world’s most advanced and networked fighter jet currently in service.
Just days before the operation, Lockheed revealed successful flight testing of an artificial intelligence-enhanced Combat Identification system embedded within the F-35’s information fusion architecture. According to the company, this AI technology accelerates threat recognition and enhances pilot decision-making capabilities during operations.
Lockheed additionally announced the implementation of real-time, over-the-air software enhancements to the Aegis combat system aboard U.S. Navy vessels operating in the Red Sea, facilitating improved response times against drone and missile attacks.
Other Defense Stocks Move Higher
RTX Corp experienced a nearly 6% increase in overnight markets. The company’s Tomahawk cruise missile system — a precision strike weapon with a range exceeding 1,000 miles — saw deployment during the operation, fired from Naval vessels including the USS Thomas Hudner.
Earlier this month, RTX’s Raytheon division finalized five framework contracts with the U.S. Department of War aimed at increasing Tomahawk and AMRAAM missile manufacturing capacity. These agreements are expected to push annual Tomahawk production beyond 1,000 units.
L3Harris Technologies posted a 5.3% gain in the same trading window. AeroVironment recorded an 8.5% increase last week following the deployment of its counter-drone technology.
LMT Valuation
Prior to Sunday’s price movement, LMT shares were already positioned at premium valuation levels. The equity maintained a price-to-earnings ratio of 30.62, nearing its 5-year peak, alongside a price-to-sales ratio of 2.05, close to its 10-year maximum.
GurFocus identified LMT as moderately overvalued, assigning a GF Value of $542.78 to the stock.
Wall Street analyst consensus points to a price target of $657.75 with a recommendation score of 2.6. Institutional investors control 75.01% of outstanding shares.
The Relative Strength Index reading of 63.82 indicates the stock is nearing overbought conditions entering this week’s trading sessions.
LMT maintains a market capitalization of $151.41 billion with trailing 12-month revenues reaching $75.05 billion.
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