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Lockheed Martin (LMT) Gains But Lags Market: What You Should Know

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Lockheed Martin (LMT - Free Report) closed the most recent trading day at $382.50, moving +0.87% from the previous trading session. This move lagged the S&P 500's daily gain of 1.4%.

Prior to today's trading, shares of the aerospace and defense company had lost 2.07% over the past month. This has lagged the Aerospace sector's gain of 2.52% and the S&P 500's gain of 1.07% in that time.

Wall Street will be looking for positivity from LMT as it approaches its next earnings report date. On that day, LMT is projected to report earnings of $6.52 per share, which would represent year-over-year growth of 6.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.9 billion, up 4.21% from the year-ago period.

LMT's full-year Zacks Consensus Estimates are calling for earnings of $26.74 per share and revenue of $68.28 billion. These results would represent year-over-year changes of +9.14% and +4.41%, respectively.

It is also important to note the recent changes to analyst estimates for LMT. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. LMT is currently a Zacks Rank #3 (Hold).

Digging into valuation, LMT currently has a Forward P/E ratio of 14.18. This represents a discount compared to its industry's average Forward P/E of 16.69.

Meanwhile, LMT's PEG ratio is currently 3.1. 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 1.87 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 18% 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.

To follow LMT in the coming trading sessions, be sure to utilize Zacks.com.


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