In the latest trading session, Lockheed Martin (LMT) closed at $413.59, marking a -0.73% move from the previous day. This change was narrower than the S&P 500's 1.13% loss on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.16%.
Coming into today, shares of the aerospace and defense company had lost 5.65% in the past month. In that same time, the Aerospace sector lost 6.17%, while the S&P 500 lost 7.59%.
Lockheed Martin will be looking to display strength as it nears its next earnings release. On that day, Lockheed Martin is projected to report earnings of $6.66 per share, which would represent no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $16.79 billion, up 4.74% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $21.84 per share and revenue of $65.4 billion, which would represent changes of -3.49% and -2.45%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lockheed Martin. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Lockheed Martin currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Lockheed Martin has a Forward P/E ratio of 19.08 right now. This valuation marks a premium compared to its industry's average Forward P/E of 18.58.
Also, we should mention that LMT has a PEG ratio of 3.5. 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 1.86 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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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