Lockheed Martin (LMT) Gains Despite Market Dip: Key Factors, Valuation Analysis, and Upcoming Earnings Report

In the latest trading session, Lockheed Martin (LMT) closed at $479.34, marking a 2.63% increase from the previous day's close. This performance outpaced the S&P 500's daily loss of 0.84%, with the Dow experiencing a 0.7% decline and the tech-heavy Nasdaq depreciating by 0.91%.

Despite the recent gain, the stock of the aerospace and defense company has fallen by 0.27% in the past month, leading the Aerospace sector's loss of 0% and undershooting the S&P 500's gain of 1.44%. Investors will be closely monitoring Lockheed Martin's upcoming earnings report, which is forecasted to report an EPS of $6.58, showcasing a 7.45% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate is calling for revenue of $18.59 billion, up 2.57% from the prior-year quarter.

For the full year, analysts are expecting earnings of $27.27 per share and revenue of $74.35 billion, marking changes of -4.21% and +4.66%, respectively, from last year. Investors should also take note of any recent adjustments to analyst estimates for Lockheed Martin, as these revisions typically reflect the latest short-term business trends.

The Zacks Rank system, which runs from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% decrease, with Lockheed Martin currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Lockheed Martin is presently being traded at a Forward P/E ratio of 17.13, which signifies a discount in comparison to the average Forward P/E of 24.12 for its industry. The company also has a PEG ratio of 1.63, which accounts for its projected earnings growth in addition to the widely accepted P/E ratio. The Aerospace - Defense industry currently had an average PEG ratio of 1.98 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector and ranks in the top 29% of all industries with a current Zacks Industry Rank of 69, numbering over 250 industries. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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