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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 $364.14, marking a +0.25% move from the previous day. This change lagged the S&P 500's 0.92% gain on the day. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.

Heading into today, shares of the aerospace and defense company had gained 5.12% over the past month, outpacing the Aerospace sector's gain of 4.05% and the S&P 500's loss of 0.85% in that time.

Lockheed Martin will be looking to display strength as it nears its next earnings release, which is expected to be January 25, 2022. The company is expected to report EPS of $7.22, up 13.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.67 billion, up 3.72% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Lockheed Martin. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. The Zacks Consensus EPS estimate has moved 0.87% lower within the past month. Lockheed Martin currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, Lockheed Martin is holding a Forward P/E ratio of 13.79. For comparison, its industry has an average Forward P/E of 16.72, which means Lockheed Martin is trading at a discount to the group.

It is also worth noting that LMT currently has a PEG ratio of 3.87. 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. The Aerospace - Defense industry currently had an average PEG ratio of 2.22 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 234, which puts it in the bottom 9% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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