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Lockheed Martin (LMT) Gains But Lags Market: What You Should Know

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Lockheed Martin (LMT - Free Report) closed at $361.36 in the latest trading session, marking a +1.71% move from the prior day. This change lagged the S&P 500's 3.41% gain on the day. At the same time, the Dow added 3.44%, and the tech-heavy Nasdaq gained 2.58%.

Heading into today, shares of the aerospace and defense company had lost 3.24% over the past month, outpacing the Aerospace sector's loss of 30.16% and the S&P 500's loss of 10.46% in that time.

LMT will be looking to display strength as it nears its next earnings release, which is expected to be April 21, 2020. The company is expected to report EPS of $5.75, down 4.01% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.23 billion, up 6.21% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.12 per share and revenue of $63.78 billion. These totals would mark changes of +9.89% and +6.64%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for LMT. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. LMT currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, LMT is holding a Forward P/E ratio of 14.73. For comparison, its industry has an average Forward P/E of 12.53, which means LMT is trading at a premium to the group.

We can also see that LMT currently has a PEG ratio of 2.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense was holding an average PEG ratio of 1.53 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


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