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

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Lockheed Martin (LMT - Free Report) closed at $422.19 in the latest trading session, marking a -0.87% move from the prior day. This move lagged the S&P 500's daily gain of 1.5%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 0.16%.

Heading into today, shares of the aerospace and defense company had lost 3.95% over the past month, outpacing the Aerospace sector's loss of 3.96% and the S&P 500's loss of 6.54% in that time.

Wall Street will be looking for positivity from Lockheed Martin as it approaches its next earnings report date. On that day, Lockheed Martin is projected to report earnings of $6.38 per share, which would represent a year-over-year decline of 10.52%. Our most recent consensus estimate is calling for quarterly revenue of $16.07 billion, down 5.62% from the year-ago period.

LMT's full-year Zacks Consensus Estimates are calling for earnings of $26.84 per share and revenue of $65.96 billion. These results would represent year-over-year changes of +18.6% and -1.61%, respectively.

Investors might also notice recent changes to analyst estimates for Lockheed Martin. Recent revisions tend to reflect the latest near-term business trends. 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. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Lockheed Martin is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Lockheed Martin is holding a Forward P/E ratio of 15.87. For comparison, its industry has an average Forward P/E of 17.21, which means Lockheed Martin is trading at a discount to the group.

Meanwhile, LMT's PEG ratio is currently 2.79. 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 2.06 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 182, which puts it in the bottom 28% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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