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Zacks Equity Research
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In the latest market close, Lockheed Martin (LMT) reached $442.07, with a +1.63% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 0.46%.
The aerospace and defense company’s shares have seen a decrease of 1.2% over the last month, not keeping up with the Aerospace sector’s gain of 5.69% and outstripping the S&P 500’s loss of 3.59%.
Investors will be eagerly watching for the performance of Lockheed Martin in its upcoming earnings disclosure. In that report, analysts expect Lockheed Martin to post earnings of $6.42 per share. This would mark year-over-year growth of 1.42%. Alongside, our most recent consensus estimate is anticipating revenue of $17.74 billion, indicating a 3.19% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.15 per share and a revenue of $74.27 billion, signifying shifts of -4.64% and +4.55%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Lockheed Martin. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Lockheed Martin currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Lockheed Martin is presently being traded at a Forward P/E ratio of 16.02. This expresses a discount compared to the average Forward P/E of 21.66 of its industry.
One should further note that LMT currently holds a PEG ratio of 2.06. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. LMT’s industry had an average PEG ratio of 1.88 as of yesterday’s close.
The Aerospace – Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 142, this industry ranks in the bottom 44% of all industries, numbering over 250.
