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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 $413.11 in the latest trading session, marking a -0.15% move from the prior day. This change lagged the S&P 500's 0.35% gain on the day. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.56%.

Prior to today's trading, shares of the aerospace and defense company had gained 7.2% over the past month. This has outpaced the Aerospace sector's gain of 2.41% and the S&P 500's gain of 4.69% in that time.

Investors will be hoping for strength from LMT as it approaches its next earnings release, which is expected to be January 28, 2020. In that report, analysts expect LMT to post earnings of $4.97 per share. This would mark year-over-year growth of 13.21%. Meanwhile, our latest consensus estimate is calling for revenue of $15.28 billion, up 6.01% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for LMT. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LMT currently has a Zacks Rank of #3 (Hold).

Digging into valuation, LMT currently has a Forward P/E ratio of 17.05. This represents a discount compared to its industry's average Forward P/E of 17.99.

We can also see that LMT currently has a PEG ratio of 2.41. 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. LMT's industry had an average PEG ratio of 2.35 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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