Back to top

Image: Bigstock

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

Read MoreHide Full Article

Lockheed Martin (LMT - Free Report) closed at $381.49 in the latest trading session, marking a +0.33% move from the prior day. The stock lagged the S&P 500's daily gain of 0.75%.

Coming into today, shares of the aerospace and defense company had lost 1.84% in the past month. In that same time, the Aerospace sector lost 2.29%, while the S&P 500 gained 2.91%.

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 $6.52 per share. This would mark 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.74 per share and revenue of $68.28 billion. These totals would mark changes of +9.14% and +4.41%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for LMT. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. LMT currently has a Zacks Rank of #3 (Hold).

In terms of valuation, LMT is currently trading at a Forward P/E ratio of 14.22. Its industry sports an average Forward P/E of 16.81, so we one might conclude that LMT is trading at a discount comparatively.

Investors should also note that LMT has a PEG ratio of 3.11 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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