In response to rising pressure from China’s growing military strength and President Trump to spend more on American military hardware, the Japanese government on Tuesday announced that it plans to spend nearly $10 billion for fighter jets.
Japan has expressed its plan to buy 147 F-35 fighter jets from Lockheed Martin, up from the previously planned 42 fighter jets, making Japan the largest customer outside the U.S. for Lockheed Martin. The announcement comes after the cabinet of Prime Minister Shinzo Abe on Tuesday approved an increase of Japan’s existing order, as the nation embarked on materializing its new defense strategy, which also includes the development of Tokyo’s first post-World War II aircraft carriers.
According to the terms of the deal, around 40 of the jets out of the 147 will be the F-35B version – which is nearly 20% more expensive than the conventional F-35A but has the special ability of taking off and landing vertically and is expected to be used on two flat-top destroyers that will be refitted to carry aircraft.
The $10 billion fighter jet deal, at its current publicized prices, is expected to become the world’s most expensive military program in the recent history.
LMT saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 02, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 43 instances where the indicator turned negative. In of the 43 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The 10-day RSI Indicator for LMT moved out of overbought territory on April 22, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 63 cases where LMT's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 03, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on LMT as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LMT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
LMT broke above its upper Bollinger Band on April 19, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The 50-day moving average for LMT moved above the 200-day moving average on April 18, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LMT advanced for three days, in of 325 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 276 cases where LMT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (16.667) is normal, around the industry mean (6.674). P/E Ratio (16.901) is within average values for comparable stocks, (35.430). LMT's Projected Growth (PEG Ratio) (4.779) is very high in comparison to the industry average of (1.862). Dividend Yield (0.027) settles around the average of (0.017) among similar stocks. P/S Ratio (1.643) is also within normal values, averaging (4.679).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LMT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of components and systems for aerospace and defense use
Industry AerospaceDefense