Lockheed Martin (NYSE: LMT) secured another contract with the US Department of Defense worth $524.1 million on August 9. More specifically, the agreement represents a modification of a previously awarded fixed-price incentive advanced acquisition contract.
This modification refers to the procurement of long-lead time materials, parts, components, and work for the production of seven Lot 15 F-35A aircraft, two Lot 15 F-35B aircraft, seven Lot 16 F-35A, and two Lot F-35B aircraft for the Italian government, with a deadline of June 2025 until which the work is expected to be complete.
On the whole, Lockheed makes most of its revenue through contracts, not only with the US but also with allied countries around the globe. Therefore, the business does not rely on the strength of the consumer as it does on the strength of the government the firm is working with.
LMT chart and analysis
LMT is one of the better-performing stocks, outperforming 87% of all stocks traded in the market. Over the past month, the shares traded in a range between $373.67 to $434.65, staying in the middle of its 5-week range.
Based on technical analysis, the support zone is between $419.10 and $426.53, while the resistance line is at $433.52.
TipRanks analysts have a ‘moderate buy’ rating consensus, seeing the average price in the next 12 months reaching $473.45, 10.48% higher than the current trading price of $428.55.
Expectations of more contracts to come would be reasonable to conceive considering that there is a war raging on Europe’s doorstep.
The gyrations seen in the markets during 2022 have not affected LMT too much as the stock is up over 20% year-to-date (YTD), with the possibility of continuing its solid performance with each new contract they sign.
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Source: https://finbold.com/lockheed-martin-grabs-another-defense-contract-worth-over-500-million/