Lockheed Martin Corp (NYSE:LMT) is propping up the Dow today, up 3.9% ahead of the bell. The blue-chip defense contractor reported adjusted third-quarter earnings of $7.97 on $20.71 billion in revenue, both of which topped estimates. The company also hiked its full-year guidance and reported a record $292 billion backlog.
LMT is up 14% year to date heading into today. The shares are trading at their highest level since late August, after starting the month testing $500, an area that has stepped up as support all year.
A shift in analyst sentiment could keep the wind at the equity's back. Of the 24 brokerages covering LMT, 13 maintain "hold" or worse ratings. Keep an eye on the stock's 14-Day Relative Strength Index (RSI), last seen at 72.4 and on the cusp of "overbought" territory.
Options could be the move going forward, per LMT's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 93 out of 100, indicating that the stock has tended to exceed option traders' volatility expectations during the past year.
