Lockheed Martin (LMT) ended the most recent trading day at $485.94, representing +0.53% change from the previous close. This change outpaced the S&P 500’s 0.43% decline on the day. At the same time, the Dow fell 0.07% and the tech-heavy Nasdaq fell 0.9%.
Heading into today, shares of the aerospace and defense company had lost 7.11% over the past month, lagging the Aerospace sector’s loss of 5.05% and the S&P 500’s loss of 1.98% in that time.
The investment community will be closely monitoring Lockheed Martin’s performance in its upcoming earnings report. The company’s EPS is expected to be $6.57, representing a year-over-year decline of 16.84%. Meanwhile, our latest consensus estimate is projecting revenue of $18.85 billion, down 0.12% from the prior-year period.
LMT’s full-year Zacks Consensus Estimates are calling for earnings of $26.68 per share and revenue of $71.27 billion. These results represent year-over-year changes of -4.1% and +5.48%, respectively.
Investors may also notice recent changes to analyst estimates for Lockheed Martin. Such recent changes usually indicate a change in the status of short-term business trends. Therefore, upward estimate revisions represent analyst positivity about the company’s business operations and ability to generate profits.
Our research indicates that these estimate changes are directly correlated to near-term stock performance. To benefit from this, we have developed the Zacks Rank, a proprietary model that considers these estimate changes and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has a commendable, independently-audited track record of outperformance, with #1 stocks gaining +25% since 1988. Contributes to average annual return. The Zacks Consensus EPS estimate has moved 0.55% lower within the past month. Lockheed Martin currently sports a Zacks Rank #3 (Hold).
In terms of valuation, Lockheed Martin currently has a forward P/E ratio of 18.11. This represents a discount compared to its industry’s average Forward P/E of 19.06.
We also note that LMT’s current PEG ratio is 3.98. 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 yesterday’s market close, the average PEG ratio for the Aerospace & Defense industry was 1.63.
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