Back to top

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

Read MoreHide Full Article

Lockheed Martin (LMT - Free Report) closed at $303.21 in the latest trading session, marking a +1.31% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.56%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, lost 0.38%.

Prior to today's trading, shares of the aerospace and defense company had lost 14.36% over the past month. This has lagged the Aerospace sector's loss of 10.46% and the S&P 500's loss of 6.76% in that time.

Investors will be hoping for strength from LMT as it approaches its next earnings release, which is expected to be February 4, 2019. On that day, LMT is projected to report earnings of $4.34 per share, which would represent year-over-year growth of 0.93%. Our most recent consensus estimate is calling for quarterly revenue of $13.72 billion, down 9.33% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $17.48 per share and revenue of $53.04 billion, which would represent changes of +31.13% and +3.9%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for LMT. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 2.68% higher. LMT is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, LMT is currently trading at a Forward P/E ratio of 17.12. Its industry sports an average Forward P/E of 15.9, so we one might conclude that LMT is trading at a premium comparatively.

It is also worth noting that LMT currently has a PEG ratio of 2.14. 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 was holding an average PEG ratio of 1.43 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 73, putting it in the top 28% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.




In-Depth Zacks Research for the Tickers Above


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


Lockheed Martin Corporation (LMT) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in