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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 $489.99, marking a +0.3% move from the previous day. This move outpaced the S&P 500's daily loss of 0.25%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq lost 1.88%.

Coming into today, shares of the aerospace and defense company had gained 2.06% in the past month. In that same time, the Aerospace sector lost 1.59%, while the S&P 500 gained 1.48%.

Investors will be hoping for strength from Lockheed Martin as it approaches its next earnings release. On that day, Lockheed Martin is projected to report earnings of $6.13 per share, which would represent a year-over-year decline of 4.81%. Our most recent consensus estimate is calling for quarterly revenue of $14.91 billion, down 0.33% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $26.84 per share and revenue of $65.8 billion. These totals would mark changes of -1.43% and -0.28%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Lockheed Martin. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Lockheed Martin is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Lockheed Martin is currently trading at a Forward P/E ratio of 18.2. This represents a premium compared to its industry's average Forward P/E of 18.15.

Also, we should mention that LMT has a PEG ratio of 2.65. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense was holding an average PEG ratio of 1.97 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow LMT in the coming trading sessions, be sure to utilize Zacks.com.


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