Lockheed Martin took a bigger dip than the overall market yesterday, closing down 1.43% while the S&P 500 only fell 0.57%. Not a huge move, but worth noting when a major defense contractor underperforms like that. The Dow was down 1.61% and tech stocks were relatively resilient with just a 0.26% decline.

What's interesting is that LMT had been on a solid run - up 10.24% over the past month, outpacing the broader market. The aerospace and defense sector itself gained 7.46% in that same period, so the stock was riding some decent momentum before this dip.

Looking ahead, investors are watching the upcoming earnings report closely. Analysts are projecting $7.03 earnings per share, which would actually represent a slight decline year-over-year, down 3.43%. Revenue expectations are more optimistic though - they're forecasting $18.51 billion, up 3.06% from last year. For the full year, the consensus is looking for $29.81 per share and $78.84 billion in revenue, both showing solid growth.

Valuation-wise, LMT is trading at a Forward P/E of 22.29, which is actually a discount compared to the aerospace-defense industry average of 25.44. The PEG ratio sits at 1.2, also favorable relative to the industry's 2.15 average. The Zacks rating on this one is currently at #3 (Hold), and the aerospace-defense industry itself ranks in the top 31% of all sectors.

So while yesterday's dip might have caught some off guard, the longer-term picture still looks reasonable for defense stocks. Whether this dip represents a buying opportunity or signals more weakness ahead is the question traders are asking today.