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Lockheed Martin (LMT) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Lockheed Martin (LMT) closed at $391.90 in the latest trading session, marking a +1.41% move from the prior day. This move outpaced the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.34%, and the tech-heavy Nasdaq gained 0.23%.

Heading into today, shares of the aerospace and defense company had lost 0.97% over the past month, outpacing the Aerospace sector's loss of 3.92% and lagging the S&P 500's gain of 3.81% in that time.

LMT will be looking to display strength as it nears its next earnings release. On that day, LMT is projected to report earnings of $4.97 per share, which would represent year-over-year growth of 13.21%. Meanwhile, our latest consensus estimate is calling for revenue of $15.28 billion, up 6.01% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.62 per share and revenue of $59.19 billion. These totals would mark changes of +22.91% and +10.1%, respectively, from last year.

Investors should also note any 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant 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 17.87. Its industry sports an average Forward P/E of 18.23, so we one might conclude that LMT is trading at a discount comparatively.

Meanwhile, LMT's PEG ratio is currently 2.52. 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. LMT's industry had an average PEG ratio of 2.12 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.

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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