Lockheed Martin stock tumbled Tuesday as the defense contractor announced $1.6 billion in program losses and slashed its full-year profit forecast.

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.

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.