Lockheed Martin (LMT, $314.26) eyeing record cost reductions and operational efficiency for F35
Lockheed Martin is exploring new ways of expanding its F-35 fleet and is entering into new partnerships to enhance the fleet’s readiness and reduce sustainment costs. Recently, the company transitioned F-35 suppliers to long-term Performance Based Logistics (PBL) contracts and 12 Master Repair Agreements (MRA) to enhance repair capacity and speed.
Replacing annual contracts, the new multi-year PBLs allow companies to make long term investments and actions towards improved efficiency and cost reduction. At present, the PBLs cover several contracts with BAE Systems, Northrop Grumman (NOC) and Collins Elbit Vision Systems; and the MRAs cover contracts with 12 separate suppliers including companies like Honeywell (HON), General Electric (GE) and Eaton (ETN).
Not only are the initial multi-year contracts delivering positive results, the newer production aircraft are averaging more than 60% mission capable rates and is approaching the company’s 80% goal which amounts to reducing costs at $25,000 cost per flight hour by 2025. Further, the company has also reduced its operating costs per aircraft by 15% since 2015.
As more aircraft joins service, the company is speedily optimizing its resources and with advanced technology and superior range, F-35 is the most durable and connected aircraft in the world. Its ability to collect, analyse and share data is destined to become a powerful weapon in the battlespace.
Aroon Indicator for LMT shows an upward move is likely
LMT's Aroon Indicator triggered a bullish signal on June 20, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 261 similar instances where the Aroon Indicator showed a similar pattern. In of the 261 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near 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 340 cases, the price rose further within the following month. The odds of a continued upward trend are .
LMT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 27, 2025. 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 June 11, 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 .
LMT moved below its 50-day moving average on June 24, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for LMT crossed bearishly below the 50-day moving average on June 25, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following 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 .
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 (16.077) is normal, around the industry mean (9.760). P/E Ratio (19.767) is within average values for comparable stocks, (63.588). Projected Growth (PEG Ratio) (1.664) is also within normal values, averaging (2.387). Dividend Yield (0.029) settles around the average of (0.018) among similar stocks. P/S Ratio (1.517) is also within normal values, averaging (9.188).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 60, 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.
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General Information
a manufacturer of components and systems for aerospace and defense use
Industry AerospaceDefense
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