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Lockheed Martin (LMT) Exceeds Market Returns: Some Facts to Consider

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Lockheed Martin (LMT - Free Report) closed the most recent trading day at $504.49, moving +1.03% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.28%.

Shares of the aerospace and defense company have appreciated by 9.31% over the course of the past month, outperforming the Aerospace sector's gain of 5.15%, and the S&P 500's gain of 4.83%.

The investment community will be paying close attention to the earnings performance of Lockheed Martin in its upcoming release. The company is slated to reveal its earnings on October 21, 2025. On that day, Lockheed Martin is projected to report earnings of $6.33 per share, which would represent a year-over-year decline of 7.46%. At the same time, our most recent consensus estimate is projecting a revenue of $18.53 billion, reflecting a 8.31% rise from the equivalent quarter last year.

LMT's full-year Zacks Consensus Estimates are calling for earnings of $21.86 per share and revenue of $74.21 billion. These results would represent year-over-year changes of -23.22% and +4.46%, respectively.

Investors might also notice recent changes to analyst estimates for Lockheed Martin. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. Lockheed Martin is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Lockheed Martin is holding a Forward P/E ratio of 22.84. For comparison, its industry has an average Forward P/E of 25.97, which means Lockheed Martin is trading at a discount to the group.

Investors should also note that LMT has a PEG ratio of 2.22 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Aerospace - Defense was holding an average PEG ratio of 2.22 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 144, this industry ranks in the bottom 42% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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