In the latest trading session, Lockheed Martin (LMT) closed at $403.93, marking a -0.21% move from the previous day. This change lagged the S&P 500’s daily gain of 0.22%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.2%.
Coming into today, shares of the aerospace and defense company had lost 4.89% in the past month. In that same time, the Aerospace sector lost 3.93%, while the S&P 500 lost 8.32%.
Investors will be hoping for strength from Lockheed Martin as it approaches its next earnings release. On that day, Lockheed Martin is projected to report earnings of $6.41 per share, which would represent a year-over-year decline of 10.1%. Our most recent consensus estimate is calling for quarterly revenue of $16.25 billion, down 4.6% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $26.84 per share and revenue of $66.15 billion, which would represent changes of +18.6% and -1.33%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Lockheed Martin. These recent revisions tend to reflect the evolving nature of short-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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Lockheed Martin currently has a Zacks Rank of #3 (Hold).
Investors should also note Lockheed Martin’s current valuation metrics, including its Forward P/E ratio of 15.08. This valuation marks a discount compared to its industry’s average Forward P/E of 16.33.
It is also worth noting that LMT currently has a PEG ratio of 2.66. 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. Aerospace – Defense stocks are, on average, holding a PEG ratio of 1.95 based on yesterday’s closing prices.
The Aerospace – Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 217, putting it in the bottom 15% 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.
To follow LMT in the coming trading sessions, be sure to utilize Zacks.com.