Back to top

Image: Bigstock

Lockheed Martin (LMT) Advances While Market Declines: Some Information for Investors

Read MoreHide Full Article

The most recent trading session ended with Lockheed Martin (LMT - Free Report) standing at $512.94, reflecting a +0.57% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.3%. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.25%.

Shares of the aerospace and defense company witnessed a loss of 10.62% over the previous month, trailing the performance of the Aerospace sector with its loss of 5.07% and the S&P 500's gain of 1.09%.

Market participants will be closely following the financial results of Lockheed Martin in its upcoming release. The company is expected to report EPS of $6.57, down 16.84% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $18.85 billion, down 0.12% from the year-ago period.

LMT's full-year Zacks Consensus Estimates are calling for earnings of $26.68 per share and revenue of $71.27 billion. These results would represent year-over-year changes of -4.1% and +5.48%, respectively.

Any recent changes to analyst estimates for Lockheed Martin should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.22% lower. As of now, Lockheed Martin holds a Zacks Rank of #3 (Hold).

With respect to valuation, Lockheed Martin is currently being traded at a Forward P/E ratio of 19.11. Its industry sports an average Forward P/E of 19.11, so one might conclude that Lockheed Martin is trading at no noticeable deviation comparatively.

Also, we should mention that LMT has a PEG ratio of 4.2. 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. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.66.

The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 29% echelons 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lockheed Martin Corporation (LMT) - free report >>

Published in