Lockheed Martin (LMT) closed the latest trading day at $485.94, indicating a +0.53% change from the previous session’s end. This change outpaced the S&P 500’s 0.43% loss on the day. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 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 the performance of Lockheed Martin in its forthcoming earnings report. The company is forecasted to report an EPS of $6.57, showcasing a 16.84% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $18.85 billion, indicating a 0.12% decrease compared to the same quarter of the previous year.
LMT’s full-year Zacks Consensus Estimates are calling for earnings of $26.68 per share and revenue of $71.27 billion. These results would represent year-over-year changes of -4.1% and +5.48%, respectively.
Investors might also notice recent changes to analyst estimates for Lockheed Martin. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.55% lower within the past month. Lockheed Martin is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Lockheed Martin is currently trading at a Forward P/E ratio of 18.11. This expresses a discount compared to the average Forward P/E of 19.06 of its industry.
We can also see that LMT currently has a PEG ratio of 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 the market closed yesterday, the Aerospace – Defense industry was having an average PEG ratio of 1.63.
