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LMT, ACN, and NUE have all quietly delivered big gains over the past month.
Strong results have helped drive the outperformance, with business momentum remaining strong for each.
All three offer solid dividend payouts, reflecting a shareholder-friendly nature.
While weakness in the AI trade has taken hold of attention over the past month, several stocks have quietly shown a high level of relative strength, including Lockheed Martin (LMT - Free Report) , Accenture (ACN - Free Report) , and Nucor (NUE - Free Report) .
Image Source: Zacks Investment Research
Lockheed Martin Sees Record Backlog
Lockheed Martin, a current Zacks Rank #2 (Buy), is a leading aerospace and defense company. Shares reacted strongly to its latest earnings release, with sales climbing 11% YoY to $20.7 billion and earnings up 14% to $1.8 billion. Importantly, the company exited the period with a record $292 billion backlog, reflecting solid demand visibility.
Both EPS and sales expectations for its current fiscal year have trended nicely higher over the past year, with LMT expected to see 32% YoY earnings growth on nearly 9% higher sales relative to FY25.
Image Source: Zacks Investment Research
The record backlog and favorable defense spending paired with a favorable revisions backdrop provide a solid foundation for near-term share momentum. Keep in mind that the company is on track to soon become a Dividend Aristocrat, reflecting another nice benefit for those looking to reap income.
Accenture Shares Soar
Accenture, the strongest performer of the bunch over the past month, similarly delivered a solid quarterly release recently, with revenue climbing 6% YoY to $18.7 billion and exceeding the high end of management's prior guidance. Adjusted earnings of $3.29 per share similarly reflected positivity, up 9% from the year-ago period.
New bookings reached $22.2 billion, and the company secured 141 client bookings valued at $100 million or more during the period. The results helped ease concerns surrounding AI-related fears that have weighed on traditional IT services companies.
The stock reflects a solid pairing of tech exposure paired with growing dividend payouts, with the company sporting a shareholder-friendly 13.5% five-year annualized dividend growth rate. Shares currently yield 2.6% annually.
Image Source: Zacks Investment Research
Nucor Earnings Double
Nucor, a leading domestic steel producer, has seen its earnings outlook turn highly bullish across the board over recent months, landing it as a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Like those above, the stock has seen a nice reaction to its latest quarterly release, with earnings of $5.80 per share more than doubling YoY. Sales of $11.3 billion similarly grew by a double-digit 32% from the same period last year.
Strong demand across key end markets, along with higher average selling prices and increased volumes, helped drive the strong results. Federal infrastructure investments, extensive electrical grid and power generation updates, and data center construction are driving the improved demand picture.
Bottom Line
Lockheed Martin (LMT - Free Report) , Accenture (ACN - Free Report) , and Nucor (NUE - Free Report) have all shown impressive relative strength over the past month, with favorable results from each providing the fuel needed to move higher. The strong releases help provide a favorable setup for continued near-term momentum, with each also offering solid dividend payouts for those looking to reap some income.
Image: Bigstock
3 Stocks Showing Impressive Relative Strength: LMT, ACN, NUE
Key Takeaways
While weakness in the AI trade has taken hold of attention over the past month, several stocks have quietly shown a high level of relative strength, including Lockheed Martin (LMT - Free Report) , Accenture (ACN - Free Report) , and Nucor (NUE - Free Report) .
Image Source: Zacks Investment Research
Lockheed Martin Sees Record Backlog
Lockheed Martin, a current Zacks Rank #2 (Buy), is a leading aerospace and defense company. Shares reacted strongly to its latest earnings release, with sales climbing 11% YoY to $20.7 billion and earnings up 14% to $1.8 billion. Importantly, the company exited the period with a record $292 billion backlog, reflecting solid demand visibility.
Both EPS and sales expectations for its current fiscal year have trended nicely higher over the past year, with LMT expected to see 32% YoY earnings growth on nearly 9% higher sales relative to FY25.
Image Source: Zacks Investment Research
The record backlog and favorable defense spending paired with a favorable revisions backdrop provide a solid foundation for near-term share momentum. Keep in mind that the company is on track to soon become a Dividend Aristocrat, reflecting another nice benefit for those looking to reap income.
Accenture Shares Soar
Accenture, the strongest performer of the bunch over the past month, similarly delivered a solid quarterly release recently, with revenue climbing 6% YoY to $18.7 billion and exceeding the high end of management's prior guidance. Adjusted earnings of $3.29 per share similarly reflected positivity, up 9% from the year-ago period.
New bookings reached $22.2 billion, and the company secured 141 client bookings valued at $100 million or more during the period. The results helped ease concerns surrounding AI-related fears that have weighed on traditional IT services companies.
The stock reflects a solid pairing of tech exposure paired with growing dividend payouts, with the company sporting a shareholder-friendly 13.5% five-year annualized dividend growth rate. Shares currently yield 2.6% annually.
Image Source: Zacks Investment Research
Nucor Earnings Double
Nucor, a leading domestic steel producer, has seen its earnings outlook turn highly bullish across the board over recent months, landing it as a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Like those above, the stock has seen a nice reaction to its latest quarterly release, with earnings of $5.80 per share more than doubling YoY. Sales of $11.3 billion similarly grew by a double-digit 32% from the same period last year.
Strong demand across key end markets, along with higher average selling prices and increased volumes, helped drive the strong results. Federal infrastructure investments, extensive electrical grid and power generation updates, and data center construction are driving the improved demand picture.
Bottom Line
Lockheed Martin (LMT - Free Report) , Accenture (ACN - Free Report) , and Nucor (NUE - Free Report) have all shown impressive relative strength over the past month, with favorable results from each providing the fuel needed to move higher. The strong releases help provide a favorable setup for continued near-term momentum, with each also offering solid dividend payouts for those looking to reap some income.