Lockheed Martin (LMT) Dips More Than Broader Market: What You Should Know

Lockheed Martin (LMT) closed at $646.09 in the latest trading session, marking a -1.03% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.61%. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq depreciated by 0.93%.

Coming into today, shares of the aerospace and defense company had gained 2.42% in the past month. In that same time, the Aerospace sector lost 1.15%, while the S&P 500 lost 2.25%.

The upcoming earnings release of Lockheed Martin will be of great interest to investors. On that day, Lockheed Martin is projected to report earnings of $6.9 per share, which would represent a year-over-year decline of 5.22%. Alongside, our most recent consensus estimate is anticipating revenue of $18.51 billion, indicating a 3.06% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $29.87 per share and revenue of $78.92 billion. These totals would mark changes of +29.2% and +5.16%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Lockheed Martin. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.2% increase. At present, Lockheed Martin boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Lockheed Martin is presently trading at a Forward P/E ratio of 21.85. This valuation marks a discount compared to its industry average Forward P/E of 24.14.

Meanwhile, LMT's PEG ratio is currently 1.18. 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. The Aerospace - Defense industry currently had an average PEG ratio of 2.08 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 36% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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