Lockheed Martin (LMT) closed the most recent trading day at $428.78, moving +1.03% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.11%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.2%.
Prior to today's trading, shares of the aerospace and defense company had gained 8.78% over the past month. This has outpaced the Aerospace sector's gain of 2.17% and the S&P 500's gain of 3.25% in that time.
Wall Street will be looking for positivity from LMT as it approaches its next earnings report date. This is expected to be January 28, 2020. The company is expected to report EPS of $4.97, up 13.21% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15.28 billion, up 6.01% from the year-ago period.
Investors might also notice recent changes to analyst estimates for LMT. These recent revisions tend to reflect the evolving nature of short-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 0.04% higher within the past month. LMT is currently a Zacks Rank #3 (Hold).
Digging into valuation, LMT currently has a Forward P/E ratio of 17.49. For comparison, its industry has an average Forward P/E of 18.52, which means LMT is trading at a discount to the group.
It is also worth noting that LMT currently has a PEG ratio of 2.47. 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 2.29 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% 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.
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