Lockheed Martin stock tanked after the defense and aerospace firm came in miles below Q2 earnings estimates. But there’s reason to load up on the LMT shares on post-earnings decline.

Key Points The medium-term outlook for defense spending is positive, with both the U.S. and other NATO countries looking to ramp up investment.Lockheed Martin is well positioned to benefit from President Trump's defense budget.

Major U.S. equities indexes were mixed at midday Tuesday as investors digested the latest corporate earnings. The Dow was higher, but the S&P 500 and Nasdaq lost ground. Shares of Lockheed Martin (LMT) slid,