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Lockheed Martin Shares Plummet After Boeing Wins Fighter Contract

Lockheed Martin's stock fell 7% after losing a major contract to Boeing. The loss reflects uncertainty in Lockheed's growth profile. Investors should evaluate Lockheed's revenue potential from the existing F-35 program and other opportunities.

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AI Rating:   5

Lockheed Martin's share price saw a significant decline following the announcement that Boeing has been awarded a $20 billion contract for the military's next-generation fighter plane, the F-47. This is a critical loss for Lockheed, which had been favored to win this contract among market analysts.

Impact on Lockheed Martin - The F-35 is the current flagship fighter jet produced by Lockheed and has been under scrutiny due to its high costs and operational concerns. The announcement of Boeing winning the contract represents increased competition for Lockheed in a vital segment. The loss introduces uncertainty in Lockheed's medium-term revenue growth, despite still having a significant number of F-35s projected for purchase and upkeep. It should be noted that while this loss disrupts immediate revenue expectations, the sustainability of the F-35 program may continue to offer financial backing.

There is no direct analysis of earnings per share (EPS), revenue growth, net income, profit margins, free cash flow (FCF), or return on equity (ROE) in the report.

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