TLDR
- Lockheed Martin stock soared nearly 7% in overnight trading after the U.S. and Israel launched “Operation Epic Fury” against Iranian military bases
- F-35 fighter jets, made by Lockheed Martin, were used in the strikes; U.S. Central Command released footage of jets taking off
- RTX rose nearly 6% and L3Harris Technologies gained 5.3% in the same session
- Last week, Lockheed flight-tested an AI-enhanced Combat ID capability integrated into the F-35’s information fusion system
- LMT trades at a P/E of 30.62, near its 5-year high, with analysts holding a target price of $657.75
Lockheed Martin stock jumped nearly 7% in overnight trading Sunday after the U.S. and Israel launched coordinated strikes on Iranian military bases in an operation called “Operation Epic Fury.”
Lockheed Martin Corporation, LMT
The attack, ordered by President Donald Trump alongside Israeli Prime Minister Benjamin Netanyahu, targeted Iranian military infrastructure over the weekend.
Iran’s Supreme Leader Ayatollah Ali Khamenei and his family were reported killed in the strikes. Iran responded by launching missiles and drones at Gulf nations including the UAE and Qatar.
Lockheed’s F-35 fighter jets were central to the operation. U.S. Central Command posted videos and photos on X showing F-35s taking off for the mission.
The F-35 is Lockheed Martin’s flagship aircraft and the company’s largest revenue driver. Lockheed describes it as the most lethal and connected fighter jet in operation today.
Just last week, Lockheed announced it had flight-tested an AI-enhanced Combat Identification capability built into the F-35’s information fusion system. The company said the AI helps pilots identify threats faster and make quicker decisions in the field.
Lockheed also said it deployed real-time, over-the-air software updates to the Aegis combat system on U.S. Navy ships in the Red Sea, enabling faster countermeasures against drone and missile threats.
Other Defense Stocks Move Higher
RTX Corp jumped nearly 6% in overnight trading. Its Tomahawk cruise missile — a precision weapon capable of striking targets from 1,000 miles away — was used in the operation, launched from Navy ships including the USS Thomas Hudner.
In early February, RTX’s Raytheon unit signed five framework agreements with the U.S. Department of War to ramp up production of Tomahawk and AMRAAM missiles. Under those agreements, annual Tomahawk production is set to exceed 1,000 units.
L3Harris Technologies gained 5.3% in the same session. AeroVironment also saw an 8.5% gain last week after deploying its counter-drone system.
LMT Valuation
Before Sunday’s move, LMT was already trading at elevated levels. The stock carried a P/E ratio of 30.62, near its 5-year high, and a P/S ratio of 2.05, close to its 10-year high.
GurFocus had flagged LMT as modestly overvalued, with a GF Value of $542.78.
Analyst consensus holds a target price of $657.75 with a recommendation score of 2.6. Institutional ownership sits at 75.01%.
The RSI reading of 63.82 puts the stock approaching overbought territory heading into this week’s session.
LMT has a market cap of $151.41 billion and posted trailing 12-month revenue of $75.05 billion.
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