Lockheed Martin (LMT, $300.95) walks away from $15 billion Saudi arms deal
Lockheed Martin, best known for the F-35 fighter, has been awarded a $945.9 million down payment on a $15 billion missile-defense agreement for Saudi -- called the Arabia Terminal High Altitude Area Defense (THAAD) -- by the Pentagon. This move could potentially alleviate the long standing tensions between Saudi and the Western governments. It is also the first step in a larger deal struck last year between the U.S. and Saudi Arabia that will eventually benefit the Saudi kingdom with 44 THAAD launchers, missiles and affiliated equipment.
Tensions between the Saudi and the U.S government had increased over the Saudi-linked killing of the journalist Jamal Khashoggi last October amidst criticism of Saudi’s role in an on-going civil war in Yemen. This led to a rethinking of the U.S.-Saudi relationship over military deals. But this new deal could be a good sign that the THAAD deal will proceed uninterrupted. The $15 billion THAAD agreement was one of the few specific deals reached as part of a comprehensive $110 billion U.S./Saudi arms package negotiated in 2017.
The THAAD system is designed to shoot down short- and medium-range ballistic missiles on their descent. Its successful operations include deterring Korean rockets over the Pacific last year. It is also a potential deterrent to Iran, which is why the system is of interest to both Saudi Arabia and Israel among other U.S. allies in the region.
Even though the THAAD deal appears safe, others have not been so lucky. A case in point is General Dynamics whose land-systems business was significantly impacted by diplomatic issues between Canada and an unnamed customer. General Dynamics (GD) in December launched a public campaign against attempts by Canadian government officials to block a $13 billion sale of Canada-made armoured vehicles to the Saudis.
Momentum Indicator for LMT turns negative, indicating new downward trend
LMT saw its Momentum Indicator move below the 0 level on October 16, 2025. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 84 similar instances where the indicator turned negative. In of the 84 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for LMT moved out of overbought territory on October 10, 2025. 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 35 similar instances where the indicator moved out of overbought territory. In of the 35 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 Moving Average Convergence Divergence Histogram (MACD) for LMT turned negative on October 13, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 October 06, 2025. 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.
Bullish Trend Analysis
The 50-day moving average for LMT moved above the 200-day moving average on October 08, 2025. 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 347 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 265 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously 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 (22.124) is normal, around the industry mean (10.208). P/E Ratio (28.389) is within average values for comparable stocks, (85.854). Projected Growth (PEG Ratio) (1.707) is also within normal values, averaging (1.808). Dividend Yield (0.026) settles around the average of (0.017) among similar stocks. P/S Ratio (1.664) is also within normal values, averaging (9.915).
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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 57, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. LMT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a manufacturer of components and systems for aerospace and defense use
Industry AerospaceDefense
Advertisement