Lockheed Martin (LMT) Gains As Market Dips: What You Should Know
Lockheed Martin (LMT) closed the most recent trading day at $467.55, moving +0.71% from the previous trading session. This change outpaced the S&P 500's 0.34% loss on the day. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 0.09%.
Prior to today's trading, shares of the aerospace and defense company had gained 4.45% over the past month. This has outpaced the Aerospace sector's gain of 3.26% and lagged the S&P 500's gain of 5.03% in that time.
Lockheed Martin will be looking to display strength as it nears its next earnings release, which is expected to be April 19, 2022. The company is expected to report EPS of $6.22, down 5.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15.62 billion, down 3.91% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $26.77 per share and revenue of $66.28 billion, which would represent changes of +18.29% and -1.14%, respectively, from the prior year.
Any recent changes to analyst estimates for Lockheed Martin should also be noted by investors. 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.
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.
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 0.08% lower. Lockheed Martin is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Lockheed Martin is holding a Forward P/E ratio of 17.34. Its industry sports an average Forward P/E of 18.91, so we one might conclude that Lockheed Martin is trading at a discount comparatively.
It is also worth noting that LMT currently has a PEG ratio of 3.05. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.84 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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