Why Lockheed Martin (LMT) Dipped More Than Broader Market Today

In the latest close session, Lockheed Martin (LMT) was down 2.98% at $544.50. The stock trailed the S&P 500, which registered a daily loss of 0.71%. Meanwhile, the Dow experienced a drop of 0.79%, and the technology-dominated Nasdaq saw a decrease of 1.03%.

The aerospace and defense company's shares have seen a decrease of 4.27% over the last month, surpassing the Aerospace sector's loss of 5.7% and falling behind the S&P 500's gain of 2.72%.

Analysts and investors alike will be keeping a close eye on the performance of Lockheed Martin in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $7.28, reflecting a 4.75% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $20.33 billion, showing a 9.27% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $30.39 per share and a revenue of $80.82 billion, signifying shifts of +31.44% and +7.7%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Lockheed Martin. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. As of now, Lockheed Martin holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Lockheed Martin is holding a Forward P/E ratio of 18.47. This denotes a discount relative to the industry average Forward P/E of 22.16.

It is also worth noting that LMT currently has a PEG ratio of 0.96. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.58.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research