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

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In the latest trading session, Lockheed Martin (LMT - Free Report) closed at $377.73, marking a +0.11% move from the previous day. This move lagged the S&P 500's daily gain of 0.58%.

Heading into today, shares of the aerospace and defense company had lost 1.77% over the past month, lagging the Aerospace sector's gain of 2.74% and the S&P 500's gain of 2.17% in that time.

Wall Street will be looking for positivity from LMT as it approaches its next earnings report date. The company is expected to report EPS of $6.52, up 6.36% from the prior-year quarter. 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. 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 has moved 0.03% lower. LMT currently has a Zacks Rank of #3 (Hold).

Investors should also note LMT's current valuation metrics, including its Forward P/E ratio of 14.11. This represents a discount compared to its industry's average Forward P/E of 16.86.

Meanwhile, LMT's PEG ratio is currently 3.09. 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. LMT's industry had an average PEG ratio of 1.89 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 32% 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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