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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 $383.14, marking a +0.85% move from the previous day. This change lagged the S&P 500's 1.13% gain on the day.

Coming into today, shares of the aerospace and defense company had lost 2.01% in the past month. In that same time, the Aerospace sector lost 4.32%, while the S&P 500 gained 2.39%.

LMT will be looking to display strength as it nears 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%. Our most recent consensus estimate is calling for quarterly revenue 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.

Investors should also note any 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. LMT is currently a Zacks Rank #2 (Buy).

Digging into valuation, LMT currently has a Forward P/E ratio of 14.21. For comparison, its industry has an average Forward P/E of 16.95, which means LMT is trading at a discount to the group.

Meanwhile, LMT's PEG ratio is currently 3.11. 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 was holding an average PEG ratio of 1.82 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% 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.


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