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Lockheed Martin (LMT) Dips More Than Broader Markets: What You Should Know

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Lockheed Martin (LMT - Free Report) closed the most recent trading day at $365.25, moving -0.66% from the previous trading session. This change lagged the S&P 500's 0.34% loss on the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 0.43%.

Heading into today, shares of the aerospace and defense company had gained 5.45% over the past month, outpacing the Aerospace sector's gain of 4.84% and the S&P 500's gain of 4.46% in that time.

Investors will be hoping for strength from LMT as it approaches its next earnings release, which is expected to be July 23, 2019. In that report, analysts expect LMT to post earnings of $4.74 per share. This would mark year-over-year growth of 9.98%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.16 billion, up 5.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $20.52 per share and revenue of $58 billion, which would represent changes of +16.66% and +7.88%, respectively, from the prior year.

Investors should also note any 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.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. LMT currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that LMT has a Forward P/E ratio of 17.92 right now. For comparison, its industry has an average Forward P/E of 16.76, which means LMT is trading at a premium to the group.

Also, we should mention that LMT has a PEG ratio of 2.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LMT's industry had an average PEG ratio of 2.09 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% 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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