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Lockheed Martin (LMT) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Lockheed Martin (LMT) closed at $403.77 in the latest trading session, marking a -1.17% move from the prior day. This change lagged the S&P 500's 0.53% loss on the day. Elsewhere, the Dow lost 1.04%, while the tech-heavy Nasdaq added 0.67%.

Investors will be hoping for strength from LMT as it approaches its next earnings release. The company is expected to report EPS of $5.71, up 14.2% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15.24 billion, up 5.6% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $24.05 per share and revenue of $63.51 billion, which would represent changes of +9.57% and +6.19%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for LMT. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. LMT is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, LMT is currently trading at a Forward P/E ratio of 16.99. For comparison, its industry has an average Forward P/E of 17.71, which means LMT is trading at a discount to the group.

We can also see that LMT currently has a PEG ratio of 2.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LMT's industry had an average PEG ratio of 2.59 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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