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

Zacks Equity Research
·3 min read

In the latest trading session, Lockheed Martin (LMT) closed at $348.03, marking a -0.22% move from the previous day. This change lagged the S&P 500's daily gain of 0.57%. At the same time, the Dow added 1.44%, and the tech-heavy Nasdaq lost 0.61%.

Heading into today, shares of the aerospace and defense company had lost 2.91% over the past month, outpacing the Aerospace sector's loss of 5.31% and lagging the S&P 500's gain of 0.83% in that time.

Wall Street will be looking for positivity from LMT as it approaches its next earnings report date. In that report, analysts expect LMT to post earnings of $6.41 per share. This would mark year-over-year growth of 21.17%. Our most recent consensus estimate is calling for quarterly revenue of $17 billion, up 7.07% from the year-ago period.

Investors might also notice recent changes to analyst estimates for LMT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. LMT currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that LMT has a Forward P/E ratio of 13.3 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.84.

Meanwhile, LMT's PEG ratio is currently 2. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.14 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 234, which puts it in the bottom 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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