Lockheed Martin (LMT) Gains As Market Dips: What You Should Know
Lockheed Martin (LMT) closed at $388.95 in the latest trading session, marking a +0.01% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the aerospace and defense company had lost 1.23% over the past month, lagging the Aerospace sector's gain of 0.31% and the S&P 500's gain of 5.91% in that time.
Investors will be hoping for strength from LMT as it approaches its next earnings release, which is expected to be October 20, 2020. On that day, LMT is projected to report earnings of $6.07 per share, which would represent year-over-year growth of 7.24%. Our most recent consensus estimate is calling for quarterly revenue of $16.24 billion, up 7.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $24.13 per share and revenue of $64.76 billion, which would represent changes of +9.93% and +8.28%, respectively, from the prior year.
Any recent changes to analyst estimates for LMT should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. LMT is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, LMT currently has a Forward P/E ratio of 16.12. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 16.12.
We can also see that LMT currently has a PEG ratio of 2.33. 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. The Aerospace - Defense industry currently had an average PEG ratio of 2.33 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.