Lockheed Martin stock drops after losing Air Force contract

Lockheed Martin's stock is down about 3% following news that it lost a key contract to build the Air Force's next-generation fighter jet. The loss has caused concern among investors, as Lockheed Martin has been a leader in fighter technologies for many years. Last week, the Air Force awarded Boeing an initial $19 billion contract for its sixth-generation fighter. This contract could lead to over $250 billion in revenue for Boeing and its subcontractors over time. Lockheed Martin had been expected to win at least one of the new fighter contracts, which has worsened the market's reaction. The company's shares were downgraded from "buy" to "hold" by several investment banks. While Lockheed is still expected to generate revenue from the F-35 fighter program, the loss of the new contract could limit immediate growth for the company. Despite this setback, Lockheed Martin has ongoing projects, including helicopters and missile programs. However, there are currently no strong catalysts to boost the stock price in the near future. Lockheed Martin does offer a dividend yielding 3%, which may attract some investors willing to wait for better times. However, many analysts believe there is no urgent need to invest in the company right now.