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

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  • LMT

Lockheed Martin (LMT) closed the most recent trading day at $328.42, moving -1.47% from the previous trading session. This move lagged the S&P 500's daily loss of 1.18%. At the same time, the Dow lost 1.34%, and the tech-heavy Nasdaq lost 0.92%.

Prior to today's trading, shares of the aerospace and defense company had gained 2.15% over the past month. This has outpaced the Aerospace sector's loss of 5.42% and the S&P 500's loss of 0.73% in that time.

Wall Street will be looking for positivity from Lockheed Martin as it approaches its next earnings report date. In that report, analysts expect Lockheed Martin to post earnings of $8.04 per share. This would mark year-over-year growth of 26.02%. Our most recent consensus estimate is calling for quarterly revenue of $17.81 billion, up 4.55% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $23.37 per share and revenue of $67.23 billion. These totals would mark changes of -4.61% and +2.81%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Lockheed Martin. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.85% lower within the past month. Lockheed Martin is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Lockheed Martin has a Forward P/E ratio of 14.26 right now. This valuation marks a discount compared to its industry's average Forward P/E of 16.27.

Meanwhile, LMT's PEG ratio is currently 4.01. 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 1.67 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 18% 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.

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


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