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

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Lockheed Martin (LMT - Free Report) closed at $459.87 in the latest trading session, marking a -0.61% move from the prior day. This change lagged the S&P 500's daily gain of 0.93%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 1.71%.

Prior to today's trading, shares of the aerospace and defense company had gained 2.64% over the past month. This has lagged the Aerospace sector's gain of 3.21% and the S&P 500's gain of 4.61% in that time.

Wall Street will be looking for positivity from Lockheed Martin as it approaches its next earnings report date. In that report, analysts expect Lockheed Martin to post earnings of $6.41 per share. This would mark year-over-year growth of 222.11%. Meanwhile, our latest consensus estimate is calling for revenue of $15.78 billion, up 2.15% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $27.09 per share and revenue of $65.76 billion, which would represent changes of -0.51% and -0.34%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Lockheed Martin. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Lockheed Martin is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Lockheed Martin is holding a Forward P/E ratio of 17.08. Its industry sports an average Forward P/E of 16.13, so we one might conclude that Lockheed Martin is trading at a premium comparatively.

Also, we should mention that LMT has a PEG ratio of 2.78. 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. LMT's industry had an average PEG ratio of 1.79 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% 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.

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


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