Lockheed Martin (LMT) Beats Stock Market Upswing: What Investors Need to Know

In the latest trading session, Lockheed Martin (LMT) closed at $480.39, marking a +1.58% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.44%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 0.7%.

The stock of aerospace and defense company has risen by 5.99% in the past month, leading the Aerospace sector’s gain of 4.93% and the S&P 500’s gain of 4.03%.

The investment community will be closely monitoring the performance of Lockheed Martin in its forthcoming earnings report. On that day, Lockheed Martin is projected to report earnings of $6.33 per share, which would represent a year-over-year decline of 7.46%. In the meantime, our current consensus estimate forecasts the revenue to be $18.53 billion, indicating a 8.31% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $21.86 per share and a revenue of $74.21 billion, representing changes of -23.22% and +4.46%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Lockheed Martin. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.28% higher. Lockheed Martin is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Lockheed Martin is currently exchanging hands at a Forward P/E ratio of 21.63. This signifies a discount in comparison to the average Forward P/E of 24.64 for its industry.

Meanwhile, LMT’s PEG ratio is currently 2.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As of the close of trade yesterday, the Aerospace – Defense industry held an average PEG ratio of 2.1.