TLDR
- LMT shares climbed approximately 7% during overnight trading following U.S.-Israel joint military action against Iranian installations dubbed “Operation Epic Fury”
- The defense contractor’s F-35 stealth fighters played a pivotal role in the strikes, with U.S. Central Command sharing video of aircraft launching
- Fellow defense firms RTX and L3Harris Technologies posted gains of nearly 6% and 5.3% respectively
- The company recently tested artificial intelligence-powered Combat ID technology integrated into F-35 systems
- Shares trade at a price-to-earnings multiple of 30.62, approaching its highest level in five years, while Wall Street analysts maintain a consensus target of $657.75
Shares of Lockheed Martin experienced a substantial overnight surge of nearly 7% following the weekend launch of synchronized U.S.-Israeli military operations against Iranian military installations in what officials dubbed “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 period.
Reports emerged that Iran’s Supreme Leader Ayatollah Ali Khamenei along with members of his family were killed during the strikes. Tehran retaliated by launching both missiles and unmanned aerial vehicles toward Gulf states such as the UAE and Qatar.
The operation prominently featured Lockheed’s F-35 Lightning II stealth fighters. U.S. Central Command shared footage and imagery via X platform depicting F-35s departing for their missions.
As Lockheed Martin’s premier aircraft program and primary revenue generator, the F-35 represents what the manufacturer characterizes as the world’s most advanced and networked combat aircraft currently in service.
Mere days before the strikes, the company announced successful flight testing of artificial intelligence-enhanced Combat Identification technology embedded within the F-35’s sophisticated information fusion architecture. According to Lockheed, this AI integration enables aviators to detect hostile forces more rapidly and execute time-sensitive tactical decisions.
The company additionally disclosed the deployment of instantaneous, wireless software enhancements to Aegis combat systems aboard U.S. Navy vessels operating in Red Sea waters, facilitating improved defensive responses against drone and missile assaults.
Other Defense Stocks Move Higher
RTX Corp experienced an overnight surge approaching 6%. The company’s Tomahawk land-attack cruise missile system—a precision-strike weapon with a range exceeding 1,000 nautical miles—was utilized during the operation, deployed from naval platforms including the USS Thomas Hudner.
Earlier in February, RTX’s Raytheon division executed five framework contracts with the U.S. Department of War focused on expanding Tomahawk and AMRAAM missile manufacturing capacity. These agreements establish annual Tomahawk output targets surpassing 1,000 missiles.
L3Harris Technologies posted a 5.3% increase during the identical trading period. AeroVironment similarly recorded an 8.5% advance last week following the activation of its counter-unmanned aerial system technology.
LMT Valuation
Prior to Sunday’s overnight movement, LMT shares were already positioned at premium valuation metrics. The stock maintained a price-to-earnings ratio of 30.62, nearing its peak level over the previous five years, while the price-to-sales ratio stood at 2.05, approaching its decade-high watermark.
GurFocus assessment indicated LMT as moderately overvalued relative to its calculated GF Value of $542.78.
Wall Street analyst consensus establishes a price objective of $657.75 alongside a recommendation rating of 2.6. Institutional investors control 75.01% of outstanding shares.
The relative strength index measurement of 63.82 positions the security near overbought threshold levels entering the current week’s trading.
LMT maintains a market capitalization of $151.41 billion with trailing twelve-month revenues totaling $75.05 billion.
