Lockheed Wins Contract to Support F-35 Fighter Jet Program

Lockheed Martin Corp.’s LMT business unit, Aeronautics, recently clinched a modification contract for the F-35 fighter aircraft. The award has been offered by the Naval Air Systems Command, Patuxent River, MD. Details of the DealValued at $41.6 million, the contract is expected to be completed by March 2028. Per the terms of the deal, Lockheed will procure engineering, integration support, hardware, and installation support for flight test instrumentation modifications to F-35 production aircraft. The majority of work related to this deal will be carried out in Fort Worth, TX.What’s Favoring LMT Stock?Global defense spending has surged as nations strengthen their military capabilities, driving demand for advanced weaponry like fighter jets, which are essential for air combat. This trend has significantly benefited Lockheed, a leading manufacturer of combat aircraft, through steady orders from the Pentagon and U.S. allies.Lockheed’s F-35 fighter jet, renowned as the most advanced fifth-generation aircraft, stands out for its mission readiness and cutting-edge technology. Equipped with advanced sensors and communication systems, the F-35 seamlessly connects air, land, sea, space and cyber domains, enhancing situational awareness.These exceptional features have fueled strong demand for this jet. As of Sept. 30, 2024, Lockheed had delivered 1,040 F-35 aircraft since the program's inception. The recent contract win underscores the sustained popularity of the F-35 in the global combat jet market, further solidifying its position as a cornerstone of modern air defense systems.Growth Prospects for LMTRising military conflicts, terrorism and border disputes, along with rapid technological advancements in combat jets, have led nations to increase their defense spending on combat-proven jets, which constitute an integral part of their defense structure.This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 3.7% for the global fighter aircraft market during the 2024-2029 period.Such strong market prospects drive growth opportunities for Lockheed, backed by its robust portfolio of combat jets, including the F-16, F-22 and F-21 aircraft, in addition to the F-35 jet.Opportunities for Other Defense StocksOther defense companies that are likely to benefit from the expanding global fighter aircraft market are discussed below.Northrop Grumman Corporation NOC: It is a leading provider of manned and unmanned air systems. It builds some of the world’s most advanced aircraft, such as the E-2C Hawkeye 2000, A-10 Thunderbolt II, F-5 Tiger Fighter Jet and many more.Northrop has a long-term (three to five years) earnings growth rate of 19%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates growth of 3.4% from the year-ago estimated figure.Embraer ERJ: The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes the A-29 Super Tucano light attack and advanced trainer and the C-390 Millennium military multi-mission aircraft.The Zacks Consensus Estimate for ERJ’s 2025 sales indicates growth of 18.3% from the prior-year estimated number. The stock boasts a solid average earnings surprise of 127.28% for the trailing four quarters. Textron TXT: Its Textron Aviation Defense unit offers the largest and most successful flight training system in the world. Textron Aviation Defense’s portfolio includes the Beechcraft AT-6E Wolverine jet, which covers a wide-mission spectrum including training, manned Intelligence Surveillance and Reconnaissance as well as light precision attack.Textron has a long-term earnings growth rate of 10.1%. The Zacks Consensus Estimate for TXT’s 2025 sales indicates growth of 7.4% from the year-ago estimated figure.LMT Stock’s Price MovementShares of LMT have gained 1.7% in the past six months against the industry’s 0.9% decline.Image Source: Zacks Investment ResearchLMT’s Zacks RankLMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks