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Lockheed Martin (LMT) Outpaces Stock Market Gains: What You Should Know

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Lockheed Martin (LMT - Free Report) closed at $480.17 in the latest trading session, marking a +0.48% move from the prior day. This change outpaced the S&P 500's 0.07% gain on the day. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 1.47%.

Prior to today's trading, shares of the aerospace and defense company had gained 4.1% over the past month. This has outpaced the Aerospace sector's gain of 3.45% and the S&P 500's loss of 2% in that time.

Investors will be hoping for strength from Lockheed Martin as it approaches its next earnings release. In that report, analysts expect Lockheed Martin to post earnings of $6.18 per share. This would mark a year-over-year decline of 4.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.95 billion, down 0.07% from the year-ago period.

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.

Investors should also note any recent changes to analyst estimates for Lockheed Martin. These revisions help to show the ever-changing nature of near-term business trends. 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 0.56% lower within the past month. Lockheed Martin is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Lockheed Martin currently has a Forward P/E ratio of 17.8. Its industry sports an average Forward P/E of 17.91, so we one might conclude that Lockheed Martin is trading at a discount comparatively.

Investors should also note that LMT has a PEG ratio of 2.6 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. The Aerospace - Defense industry currently had an average PEG ratio of 1.97 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 110, 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.

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