Is Lockheed Martin Corporation (LMT) About to Take a Giant Hit?

A reputation for failure, but still limping along
Historically, Lockheed Martin Corporation (NYSE:LMT)’s F-35 program has faced setbacks, groundings, massive cost overruns, and not a whole lot of good news. This is likely disconcerting for F-35 subcontractors Northrop Grumman Corporation (NYSE:NOC) and United Technologies Corporation (NYSE:UTX) , which through their Pratt & Whitney subsidiary builds the engine for the F-35.

However, even with sequestration taking effect, the F-35 program hasn’t been cut. Plus, there have been signs of life recently.

Cloudy weather ahead?
The F-35 could pull out of its current fog bank, but if things keep going poorly, purchasers could look elsewhere. Furthermore, the F-35 is one of the Pentagon’s biggest and most expensive contracts, and the fact that so many issues have plagued it is damning to Lockheed Martin Corporation (NYSE:LMT) as a company. Consequently, more bad news, or F-35 purchases cancelled, could prove damaging to Lockheed Martin Corporation (NYSE:LMT)’s stock.

The article Is Lockheed Martin’s Stock About to Take a Major Blow? originally appeared on Fool.com is written by Katie Spence.

Fool contributor Katie Spence owns shares of Northrop Grumman. Follow her on Twitter @TMFKSpence. The Motley Fool owns shares of Lockheed Martin and Northrop Grumman.

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