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

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Lockheed Martin (LMT) closed at $371.13 in the latest trading session, marking a +0.02% move from the prior day. This move lagged the S&P 500's daily gain of 0.37%.

Heading into today, shares of the aerospace and defense company had gained 10.42% over the past month, outpacing the Aerospace sector's loss of 2.87% and the S&P 500's gain of 2.13% in that time.

Wall Street will be looking for positivity from LMT as it approaches its next earnings report date. This is expected to be October 26, 2021. The company is expected to report EPS of $1.96, down 68.64% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.15 billion, up 3.99% from the year-ago period.

LMT's full-year Zacks Consensus Estimates are calling for earnings of $22.25 per share and revenue of $68.34 billion. These results would represent year-over-year changes of -9.18% and +4.5%, respectively.

Investors might also notice recent changes to analyst estimates for LMT. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. LMT is currently a Zacks Rank #4 (Sell).

In terms of valuation, LMT is currently trading at a Forward P/E ratio of 16.68. For comparison, its industry has an average Forward P/E of 18.37, which means LMT is trading at a discount to the group.

We can also see that LMT currently has a PEG ratio of 3.65. 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 1.95 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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