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

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Lockheed Martin (LMT - Free Report) closed the most recent trading day at $339.34, moving +0.43% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.69%. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq lost 0.79%.

Prior to today's trading, shares of the aerospace and defense company had gained 1.37% over the past month. This has outpaced the Aerospace sector's loss of 1.84% and the S&P 500's loss of 4.53% in that time.

Investors will be hoping for strength from LMT as it approaches its next earnings release. The company is expected to report EPS of $4.72, up 9.51% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.16 billion, up 5.67% from the year-ago period.

LMT's full-year Zacks Consensus Estimates are calling for earnings of $20.53 per share and revenue of $57.65 billion. These results would represent year-over-year changes of +16.71% and +7.24%, respectively.

Investors might also notice recent changes to analyst estimates for LMT. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. LMT is currently a Zacks Rank #2 (Buy).

In terms of valuation, LMT is currently trading at a Forward P/E ratio of 16.46. Its industry sports an average Forward P/E of 15.9, so we one might conclude that LMT is trading at a premium comparatively.

We can also see that LMT currently has a PEG ratio of 2.34. 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 1.75 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 20% 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.

To follow LMT in the coming trading sessions, be sure to utilize Zacks.com.


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