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Lockheed Martin (LMT) Surpasses Market Returns: Some Facts Worth Knowing

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Lockheed Martin (LMT - Free Report) closed at $560.41 in the latest trading session, marking a +0.41% move from the prior day. This move outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow experienced a rise of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.16%.

The aerospace and defense company's stock has climbed by 5.77% in the past month, exceeding the Aerospace sector's gain of 2.37% and the S&P 500's gain of 2.97%.

Analysts and investors alike will be keeping a close eye on the performance of Lockheed Martin in its upcoming earnings disclosure. The company is predicted to post an EPS of $6.40, indicating a 5.47% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $17.45 billion, indicating a 3.37% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $26.49 per share and a revenue of $71.14 billion, representing changes of -4.78% and +5.28%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.31% lower within the past month. Lockheed Martin is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Lockheed Martin currently has a Forward P/E ratio of 21.07. For comparison, its industry has an average Forward P/E of 20.4, which means Lockheed Martin is trading at a premium to the group.

It's also important to note that LMT currently trades at a PEG ratio of 4.51. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Aerospace - Defense industry had an average PEG ratio of 1.87 as trading concluded yesterday.

The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 52, finds itself in the top 21% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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