LMT, RTX, LHX: Defense Stocks Surge as Military Conflict Erupts Between Israel and Iran

Leading U.S. defense stocks such as Lockheed Martin (LMT), L3Harris Technologies (LHX), and RTX Corp. (RTX) are rising after Israel launched targeted attacks on Iran.

Media reports say that Israel attacked Iran overnight on June 13, targeting nuclear facilities and military sites. While the attacks have sent global stock markets in Europe, Asia and the U.S. lower, they have led to a surge in the share prices of defense contractors.

LMT, RTX and LHX stocks are each up about 5% on news of the largest attack on Iran since the Iran-Iraq war in the 1980s. Israel itself has declared a state of emergency as Iran retaliated early on June 13 with a massive drone strike. Some media have raised the prospect of all-out war between Israel and Iran.

Gold and Oil

While U.S. defense stocks are gaining on news of the military conflict, it appears that Israel has carried out this latest attack on Iran independent of America. U.S. President Donald Trump has said that the American military has not been involved in the attack on Iran.

Israel currently employs Lockheed Martin’s F-35 stealth fighter jets and other state-of-the-art U.S. military equipment and weapons. In addition to defense stocks, the price of gold is up 1.3% to $3,435.50 an ounce and Brent crude oil, the international standard, is up nearly 10% to $75.14 per barrel.

Is LMT Stock a Buy?

The stock of Lockheed Martin has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on seven Buy and eight Hold recommendations assigned in the last three months. The average LMT price target of $521.07 implies 11.04% upside from current levels.

Read more analyst ratings on LMT stock