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

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Lockheed Martin (LMT) closed at $362.07 in the latest trading session, marking a +0.09% move from the prior day. This move lagged the S&P 500's daily gain of 1.71%.

Coming into today, shares of the aerospace and defense company had gained 4.84% in the past month. In that same time, the Aerospace sector gained 0.44%, while the S&P 500 lost 2.25%.

Investors will be hoping for strength from LMT as it approaches its next earnings release, which is expected to be October 26, 2021. On that day, LMT is projected to report earnings of $2.63 per share, which would represent a year-over-year decline of 57.92%. Our most recent consensus estimate is calling for quarterly revenue of $17.15 billion, up 3.99% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $23.19 per share and revenue of $68.34 billion, which would represent changes of -5.35% and +4.5%, respectively, from the prior year.

Any recent changes to analyst estimates for LMT should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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. The Zacks Consensus EPS estimate has moved 1.1% lower within the past month. LMT is currently a Zacks Rank #4 (Sell).

Investors should also note LMT's current valuation metrics, including its Forward P/E ratio of 15.6. This valuation marks a discount compared to its industry's average Forward P/E of 17.86.

Also, we should mention that LMT has a PEG ratio of 3.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense industry currently had an average PEG ratio of 1.9 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 71, putting it in the top 28% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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