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Lockheed Martin (LMT) Gains As Market Dips: What You Should Know

Zacks Equity Research

Lockheed Martin (LMT) closed the most recent trading day at $382.61, moving +0.3% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the aerospace and defense company had lost 1.33% over the past month, lagging the Aerospace sector's loss of 0.26% and the S&P 500's loss of 0.91% in that time.

LMT will be looking to display strength as it nears its next earnings release, which is expected to be October 22, 2019. In that report, analysts expect LMT to post earnings of $5.03 per share. This would mark 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 $21.22 per share and revenue of $59.31 billion, which would represent changes of +20.64% and +10.31%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for LMT. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. LMT is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that LMT has a Forward P/E ratio of 17.97 right now. This valuation marks a premium compared to its industry's average Forward P/E of 17.77.

Also, we should mention that LMT has a PEG ratio of 2.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense was holding an average PEG ratio of 2.04 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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