Key Highlights
- Shares of Lockheed Martin climbed nearly 7% during overnight sessions following U.S.-Israel joint military strikes on Iranian targets dubbed “Operation Epic Fury”
- The operation featured F-35 fighter aircraft manufactured by Lockheed Martin; U.S. Central Command published video footage showing the jets launching
- Defense contractors RTX and L3Harris Technologies saw gains of nearly 6% and 5.3% respectively in concurrent trading
- Lockheed recently completed flight trials of AI-powered Combat ID technology integrated into F-35 information fusion systems
- The defense contractor trades at a price-to-earnings ratio of 30.62, approaching its 5-year peak, while Wall Street analysts maintain a consensus price target of $657.75
Shares of Lockheed Martin experienced a nearly 7% surge in after-hours trading Sunday following joint U.S.-Israeli military operations against Iranian military installations in what officials designated “Operation Epic Fury.”
Lockheed Martin Corporation, LMT
The coordinated assault, greenlit by President Donald Trump in partnership with Israeli Prime Minister Benjamin Netanyahu, focused on Iranian defense facilities throughout the weekend period.
Reports indicated that Iran’s Supreme Leader Ayatollah Ali Khamenei along with family members perished in the strikes. Tehran retaliated by deploying missiles and unmanned aerial vehicles toward Persian Gulf states such as the UAE and Qatar.
The military action prominently featured Lockheed’s F-35 fighter aircraft. U.S. Central Command shared imagery and video clips via X platform depicting F-35s departing for combat missions.
As Lockheed Martin’s premier aircraft platform and primary revenue generator, the F-35 represents what the manufacturer characterizes as the world’s most advanced and networked combat fighter currently operational.
Mere days before the operation, Lockheed revealed successful flight testing of artificial intelligence-enhanced Combat Identification technology embedded within the F-35’s information fusion architecture. According to company statements, this AI capability accelerates threat recognition and enhances pilot decision-making speed during combat scenarios.
Lockheed additionally reported implementing real-time, wireless software patches to Aegis combat systems aboard U.S. Navy vessels stationed in the Red Sea, facilitating improved response capabilities against unmanned aerial and missile threats.
Broader Defense Sector Gains
RTX Corp experienced a nearly 6% increase during overnight trading sessions. The company’s Tomahawk cruise missile platform—a precision-strike weapon system with a 1,000-mile operational range—participated in the operation, fired from naval vessels including the USS Thomas Hudner.
Earlier in February, RTX’s Raytheon division finalized five framework contracts with the U.S. Department of War aimed at scaling Tomahawk and AMRAAM missile manufacturing. These agreements establish annual Tomahawk output targets surpassing 1,000 units.
L3Harris Technologies recorded a 5.3% gain during the identical trading period. AeroVironment similarly posted an 8.5% advancement last week following the deployment of its counter-unmanned aerial system technology.
Valuation Metrics for LMT
Prior to Sunday’s after-hours movement, LMT shares were already positioned at premium valuation levels. The stock maintained a price-to-earnings multiple of 30.62, nearing its 5-year peak, alongside a price-to-sales ratio of 2.05, hovering near its 10-year maximum.
GurFocus analysis designated LMT as moderately overvalued, assigning a GF Value of $542.78.
Wall Street analyst consensus establishes a price objective of $657.75 with a recommendation score of 2.6. Institutional investors control 75.01% of outstanding shares.
The Relative Strength Index reading of 63.82 positions the stock nearing overbought levels entering this week’s trading sessions.
LMT maintains a market capitalization of $151.41 billion and reported trailing twelve-month revenues totaling $75.05 billion.
