Boeing (BA) just scored a huge win. The U.S. Air Force picked it to build the F-47, a new top-tier fighter jet. This deal is worth over $20 billion, which is great news for the aerospace company. However, it also changes the game for Lockheed Martin (LMT) and Northrop Grumman (NOC).
Implications for LMT
Let’s start with Lockheed Martin. This firm made the F-22 and the F-35, so many presumed it would also build the next big jet. As it turns out, that’s not the case, and it’s a big blow for the defense contractor. It now has no new fighter jets in the works for the U.S., which comes right after it also lost out on the Navy’s next-gen jet plan.
LMT stock fell close to 6% after the news. That shows how big the letdown was for folks who own the stock. Still, Lockheed isn’t out of the game. It’s still in charge of the F-35, which many U.S. allies use. That jet brings in a lot of cash. So, in the short term, Lockheed should be okay. But in the long term, it may need to find new ways to grow.
What About NOC?
As for Northrop Grumman, Unlike Lockheed, it chose to step away from this fight back in 2023. It’s been hard at work on the B-21 Raider, a top-secret stealth bomber. In this case, we’re talking about a massive project that will last years.
Still, Northrop could soon make a big play. With Lockheed out and Boeing tied up with the F-47, Northrop is now the top pick to win the Navy’s F/A-XX fighter deal. If it wins, that could boost its stock and keep it strong in the air war space. NOC stock stayed steady after the F-47 news broke, which tells us investors still trust the company’s long-term strategy.
Tipranks’ Comparison Tool
Here, we’ve used Tipranks’ comparison tool to examine in a broader perspective how the three companies compare to each other through stock performance, analyst ratings, P/E ratios, etc.
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