Back to top

Image: Bigstock

Lockheed Martin (LMT) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Lockheed Martin (LMT - Free Report) closed the most recent trading day at $346.41, moving +1.83% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.65%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 1.05%.

Coming into today, shares of the aerospace and defense company had gained 0.31% in the past month. In that same time, the Aerospace sector gained 8.17%, while the S&P 500 gained 0.36%.

Wall Street will be looking for positivity from LMT as it approaches its next earnings report date. In that report, analysts expect LMT to post earnings of $6.34 per share. This would mark year-over-year growth of 4.28%. Our most recent consensus estimate is calling for quarterly revenue of $16.46 billion, up 5.15% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.32 per share and revenue of $68.14 billion. These totals would mark changes of +7.43% and +4.19%, respectively, from last year.

Investors should also note any 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.

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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. LMT is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, LMT is currently trading at a Forward P/E ratio of 12.93. This represents a discount compared to its industry's average Forward P/E of 16.03.

Also, we should mention that LMT has a PEG ratio of 2.17. 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 1.71 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 13% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Lockheed Martin Corporation (LMT) - free report >>

Published in