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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 at $370.54 in the latest trading session, marking a -0.6% move from the prior day. This move lagged the S&P 500's daily loss of 0.32%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 0.11%.

Heading into today, shares of the aerospace and defense company had gained 11.79% over the past month, outpacing the Aerospace sector's gain of 10.3% and the S&P 500's gain of 4.4% in that time.

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 $6.34 per share. This would mark year-over-year growth of 4.28%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.46 billion, up 5.15% from the year-ago period.

LMT's full-year Zacks Consensus Estimates are calling for earnings of $26.32 per share and revenue of $68.14 billion. These results would represent year-over-year changes of +7.43% and +4.19%, respectively.

Investors should also note any recent changes to analyst estimates for LMT. Recent revisions tend to reflect the latest 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. LMT is currently a Zacks Rank #3 (Hold).

Investors should also note LMT's current valuation metrics, including its Forward P/E ratio of 14.16. This valuation marks a discount compared to its industry's average Forward P/E of 16.73.

Also, we should mention that LMT has a PEG ratio of 2.38. 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 1.81 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% 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.

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


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