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Lockheed Martin (LMT) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3-min read

Lockheed Martin (LMT) closed at $362.82 in the latest trading session, marking a +0.83% move from the prior day. This change lagged the S&P 500's 1.1% gain on the day. Elsewhere, the Dow gained 1.18%, while the tech-heavy Nasdaq added 1.09%.

LMT will be looking to display strength as it nears its next earnings release. On that day, LMT is projected to report earnings of $5.71 per share, which would represent year-over-year growth of 14.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.24 billion, up 5.6% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.05 per share and revenue of $63.51 billion. These totals would mark changes of +9.57% and +6.19%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for LMT. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. LMT currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that LMT has a Forward P/E ratio of 14.96 right now. Its industry sports an average Forward P/E of 14.92, 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 2.16. 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. The Aerospace - Defense was holding an average PEG ratio of 2.3 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% 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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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
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