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

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Lockheed Martin (LMT - Free Report) closed the most recent trading day at $479.53, moving +0.07% from the previous trading session. This change outpaced the S&P 500's 0.16% loss on the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 1.58%.

Prior to today's trading, shares of the aerospace and defense company had gained 6.67% over the past month. This has outpaced the Aerospace sector's gain of 5% and the S&P 500's gain of 0.84% in that time.

Wall Street will be looking for positivity from Lockheed Martin as it approaches its next earnings report date. On that day, Lockheed Martin is projected to report earnings of $6.18 per share, which would represent a year-over-year decline of 4.04%. Meanwhile, our latest consensus estimate is calling for revenue of $14.95 billion, down 0.07% from the prior-year quarter.

LMT's full-year Zacks Consensus Estimates are calling for earnings of $26.84 per share and revenue of $65.8 billion. These results would represent year-over-year changes of -1.43% and -0.28%, respectively.

It is also important to note the recent changes to analyst estimates for Lockheed Martin. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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 1.75% lower within the past month. Lockheed Martin currently has a Zacks Rank of #3 (Hold).

Investors should also note Lockheed Martin's current valuation metrics, including its Forward P/E ratio of 17.85. This valuation marks a discount compared to its industry's average Forward P/E of 18.1.

Also, we should mention that LMT has a PEG ratio of 2.6. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.36 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 108, which puts it in the top 43% 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.

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