Lockheed Martin Corp LMT released its Q1 earnings report on Tuesday, which showed impressive growth in net sales.
The company reported net sales of $17.195 billion, marking a 13.7% increase compared to the same quarter last year. Despite this strong performance, adjusted earnings per share (EPS) fell slightly to $6.33 from $6.43 year-over-year (YoY). However, the EPS still exceeded expectations by a notable margin.
More on the earnings, here: Lockheed Martin’s Q1 Revenue Climbs Amid Fluctuating Profit Margins, 2024 Outlook Reaffirmed
Lockheed Martin stock has been relatively stable, down a modest 4.53% over the past year and up 1.30% year-to-date (YTD). Despite this, a technical analysis has identified signs that a Golden Cross, a potentially bullish indicator, might be approaching, suggesting a possible positive trend reversal for the stock.
Positive Trend Reversal – Golden Cross In Sight
The current trend for Lockheed Martin is moderately bullish, with slight selling pressure. Several key technical indicators support this outlook.
The stock’s current price is $459.14, slightly above its 8-day SMA of $457.99 and the 20-day SMA of $454.67, signaling a bullish trend. It also trades above the 50-day SMA of $441.38 and the 200-day SMA of $442.31, reinforcing the long-term bullish outlook.
One traditionally bullish signal is the Golden Cross, where the 50-day SMA is about to cross above the 200-day SMA. If a Golden Cross were to occur, it would indicate bullish potential for the stock.
The Moving Average Convergence Divergence (MACD) indicator for Lockheed Martin is 4.74, reinforcing the bullish signal. However, the Relative Strength Index (RSI) is at 61.72, with the stock treading near the overbought zone above 70.
Looking at the Bollinger Bands, the stock price continues to lie in the upper (bullish) band, also suggesting a bullish trend.
Overall, while there are multiple signs of a bullish trend, the RSI indicates caution as the stock may soon be overbought. Investors should consider these technical indicators along with other factors before making investment decisions.
Analysts See 10%+ Upside
Despite the positive technical signals, analyst ratings for Lockheed Martin Corp are Neutral, with a consensus price target of $444. The most recent analyst ratings from Deutsche Bank, Citigroup, and UBS, released over the past two days, suggest an average price target of $503.67. This implies a potential upside of 10.21% from the current price.
While Lockheed Martin’s Q1 2024 earnings report demonstrated strong sales growth, its stock has not seen significant movement recently.
However, the technical analysis suggests a potential bullish trend. Investors should consider these factors along with analyst ratings and consensus targets before making any investment decisions regarding Lockheed Martin stock.
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