Lockheed Martin (LMT) Stock Sinks As Market Gains: Here's Why

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Lockheed Martin (LMT) closed at $491.65 in the latest trading session, marking a -0.61% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.38%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 1.24%.

The aerospace and defense company's stock has dropped by 7.51% in the past month, falling short of the Aerospace sector's loss of 1.01% and the S&P 500's gain of 1.17%.

Market participants will be closely following the financial results of Lockheed Martin in its upcoming release. On that day, Lockheed Martin is projected to report earnings of $6.57 per share, which would represent a year-over-year decline of 16.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.85 billion, down 0.12% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $26.68 per share and revenue of $71.27 billion, indicating changes of -4.1% and +5.48%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Lockheed Martin. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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. The Zacks Consensus EPS estimate has moved 0.22% lower within the past month. Lockheed Martin is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Lockheed Martin is holding a Forward P/E ratio of 18.54. This valuation marks a discount compared to its industry's average Forward P/E of 18.59.

Meanwhile, LMT's PEG ratio is currently 4.08. 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 1.62.

The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 37% of all industries, numbering over 250.