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 may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 43 cases where LMT's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LMT advanced for three days, in of 329 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 269 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 10-day RSI Indicator for LMT moved out of overbought territory on October 15, 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 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 Momentum Indicator moved below the 0 level on October 22, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on LMT as a result. In of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for LMT turned negative on October 15, 2024. 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 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
LMT moved below its 50-day moving average on October 22, 2024 date and that indicates a change from an upward trend to a downward trend.
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 .
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 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 68, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (22.573) is normal, around the industry mean (7.141). P/E Ratio (21.218) is within average values for comparable stocks, (44.496). LMT's Projected Growth (PEG Ratio) (4.987) is very high in comparison to the industry average of (1.790). Dividend Yield (0.022) settles around the average of (0.015) among similar stocks. P/S Ratio (2.008) is also within normal values, averaging (4.176).
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