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Lockheed Martin (LMT) Gains As Market Dips: What You Should Know

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In the latest trading session, Lockheed Martin (LMT - Free Report) closed at $378.25, marking a +0.38% move from the previous day. This change outpaced the S&P 500's 0.33% loss on the day.

Prior to today's trading, shares of the aerospace and defense company had lost 1.77% over the past month. This has was narrower than the Aerospace sector's loss of 5.25% and lagged the S&P 500's gain of 2.89% in that time.

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%. Meanwhile, our latest consensus estimate is calling for revenue of $16.9 billion, up 4.21% from the prior-year quarter.

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 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. LMT is currently a Zacks Rank #3 (Hold).

Digging into valuation, LMT currently has a Forward P/E ratio of 14.09. This represents a discount compared to its industry's average Forward P/E of 17.07.

Investors should also note that LMT has a PEG ratio of 3.08 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 1.81 based on yesterday's closing prices.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 111, putting it in the top 44% 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.

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


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