U.S. Markets open in 2 hrs 10 mins

Lockheed Martin (LMT) Gains But Lags Market: What You Should Know

Zacks Equity Research

Lockheed Martin (LMT) closed the most recent trading day at $384.43, moving +0.91% from the previous trading session. This move lagged the S&P 500's daily gain of 1.27%. At the same time, the Dow added 1.25%, and the tech-heavy Nasdaq gained 1.48%.

Heading into today, shares of the aerospace and defense company had gained 5.19% over the past month, outpacing the Aerospace sector's gain of 1.69% and the S&P 500's loss of 4.37% in that time.

Wall Street will be looking for positivity from LMT as it approaches its next earnings report date. On that day, LMT is projected to report earnings of $5.03 per share, which would represent a year-over-year decline of 2.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.98 billion, up 4.65% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $21.20 per share and revenue of $59.31 billion, which would represent changes of +20.52% and +10.31%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for LMT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.11% lower within the past month. LMT currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, LMT is holding a Forward P/E ratio of 17.97. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 17.97.

Meanwhile, LMT's PEG ratio is currently 2.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LMT's industry had an average PEG ratio of 1.79 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.