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.
LMT in upward trend: 10-day moving average crossed above 50-day moving average on August 29, 2025
The 10-day moving average for LMT crossed bullishly above the 50-day moving average on August 29, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
LMT moved above its 50-day moving average on August 26, 2025 date and that indicates a change from a downward trend 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 343 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 251 cases where LMT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 22 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 September 11, 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.
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 (20.747) is normal, around the industry mean (10.339). P/E Ratio (26.617) is within average values for comparable stocks, (69.168). Projected Growth (PEG Ratio) (1.576) is also within normal values, averaging (1.874). Dividend Yield (0.028) settles around the average of (0.016) among similar stocks. P/S Ratio (1.560) is also within normal values, averaging (9.576).
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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.
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 58, placing this stock slightly better than average.
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General Information
a manufacturer of components and systems for aerospace and defense use
Industry AerospaceDefense
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