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Lockheed Martin (LMT) Gains As Market Dips: What You Should Know

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Lockheed Martin (LMT - Free Report) closed at $395.58 in the latest trading session, marking a +0.77% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.46%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, lost 1.25%.

Coming into today, shares of the aerospace and defense company had gained 0.59% in the past month. In that same time, the Aerospace sector lost 3.19%, while the S&P 500 gained 1%.

Investors will be hoping for strength from LMT as it approaches its next earnings release. In that report, analysts expect LMT to post earnings of $6.07 per share. This would mark year-over-year growth of 7.24%. Meanwhile, our latest consensus estimate is calling for revenue of $16.24 billion, up 7.03% from the prior-year quarter.

LMT's full-year Zacks Consensus Estimates are calling for earnings of $24.13 per share and revenue of $64.76 billion. These results would represent year-over-year changes of +9.93% and +8.28%, respectively.

Any recent changes to analyst estimates for LMT should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.02% higher within the past month. LMT is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that LMT has a Forward P/E ratio of 16.27 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 16.27.

Also, we should mention that LMT has a PEG ratio of 2.35. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.35 based on yesterday's closing prices.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 12% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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