In the latest trading session, Lockheed Martin (LMT - Free Report) closed at $419.02, marking a +1.25% move from the previous day. This move outpaced the S&P 500's daily gain of 0.7%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 1.04%.
Prior to today's trading, shares of the aerospace and defense company had gained 7.75% over the past month. This has outpaced the Aerospace sector's gain of 3.19% and the S&P 500's gain of 4.38% in that time.
Wall Street will be looking for positivity from LMT as it approaches its next earnings report date. This is expected to be January 28, 2020. On that day, LMT is projected to report earnings of $4.97 per share, which would represent year-over-year growth of 13.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.28 billion, up 6.01% from the year-ago period.
It is also important to note the 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.
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 #2 (Buy).
In terms of valuation, LMT is currently trading at a Forward P/E ratio of 17.06. Its industry sports an average Forward P/E of 18.15, so we one might conclude that LMT is trading at a discount comparatively.
Investors should also note that LMT has a PEG ratio of 2.41 right now. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.32 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.