Lockheed Martin shares fell 5% by 10:35 a.m. ET Wednesday despite no company-specific bad news, and no analysts have downgraded the stock or cut price targets yet. Guggenheim initiated coverage with a buy rating and a $735 price target. The article notes Trump had pushed a $1.5 trillion fiscal 2027 defense budget, which a Democratic Congress is unlikely to approve, and Politico reports the Pentagon plans to cut its request to $1.1 trillion. Lockheed trades above 22 times earnings with a 1.9x price-to-sales ratio, but its $8.4 billion in free cash flow and 17.6x FCF valuation lead the author to still see the stock as attractive, with nearly 18% annual earnings growth expected on Wall Street.
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