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

Lockheed Martin (LMT) closed the most recent trading day at $406.11, moving +1.59% from the previous trading session. The stock lagged the S&P 500's daily gain of 3.06%. At the same time, the Dow added 2.8%, and the tech-heavy Nasdaq gained 0.18%.

Heading into today, shares of the aerospace and defense company had lost 4.5% over the past month, outpacing the Aerospace sector's loss of 5.73% and the S&P 500's loss of 6.15% 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 $6.66 per share, which would represent no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $16.79 billion, up 4.74% from the year-ago period.

LMT's full-year Zacks Consensus Estimates are calling for earnings of $21.84 per share and revenue of $65.4 billion. These results would represent year-over-year changes of -3.49% and -2.45%, respectively.

Investors might also notice recent changes to analyst estimates for Lockheed Martin. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lockheed Martin is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Lockheed Martin is currently trading at a Forward P/E ratio of 18.3. This represents a premium compared to its industry's average Forward P/E of 17.16.

It is also worth noting that LMT currently has a PEG ratio of 3.36. 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 industry currently had an average PEG ratio of 1.78 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% 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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