Lockheed Martin Stocks Surge with $5 Billion U.S. Army Deal

Lockheed Martin's U.S. Army Deal and Stock Outlook

On August 28, Lockheed Martin (NYSE: LMT), the largest U.S. defense contractor, secured a substantial $5 billion contract from the U.S. Army aimed at producing and maintaining essential military equipment.

• $3.9 billion allocated for the manufacturing, maintenance, and upgrades of F-35 Lightning II aircraft.
• $1 billion designated for F-35 Joint Strike Fighter (JSF) laboratory facilities and developmental flight testing.

This major contract reinforces Lockheed Martin's dominance in the defense sector, with the company reporting revenues of $64 billion from defense contracts in 2023.

Market Performance of Lockheed Martin Stocks

As of August 28, LMT stocks closed at $563.98, reflecting a modest gain of 0.64%. Interestingly, pre-market trading exhibited a slight decline of 0.26%.

The year-to-date (YTD) performance shows a growth of 23.65%, indicating strong momentum.

Technical Analysis: Stock Resistance and Momentum

Recent charts show LMT shares surpassing their immediate resistance at $562.87 and approaching $564.35. Key indicators suggest solid upward momentum, with support at $553.21.

The Relative Strength Index (RSI) currently stands at 58.59, showing increased buying interest from investors.

Wall Street's Perspective on LMT Stocks

Despite the positive contract prospect, Wall Street analysts are cautious, giving LMT stocks a moderate buy rating. The average price target sits at $561.93, reflecting a minor downside potential.

Recent evaluations from Seaport Global and Morgan Stanley indicate limited growth potential with price targets of $577 and $599, respectively.

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