The defense company is scheduled to report its first-quarter results on Thursday. Analysts, on average, anticipate earnings of $1.70 a share on revenue of $10.56 billion.
"Large backlogs will support expectations; however, we are below consensus of $1.70 at $1.65 due to our conservative outlook for Aeronautics and Information Systems -- which is likely too low on the margin performance," Sterne Agee analysts wrote in an April 18 report. "We expect both the JSF and budget scenarios to dominate the conference call, along with the outlook for cash flows and shareholding-enhancing activities (dividend increases and buybacks). LMT has the highest yield among defense primes at 4.4%; this continues to support the stock in the near term."
Shares of Lockheed Martin hit a 52-week Wednesday of $91.89. The stock's 52-week low of $66.36 was set on Aug. 11.
Lockheed Martin's forward P/E is 10.75; the average for defense companies is 11.61. For comparison, General Dynamics(GD) has a lower forward P/E of 8.78.
Seventeen of the 24 analysts who cover Lockheed Martin rated it hold. Five analysts gave the stock a buy rating and two rated it sell.