General Dynamics (GD) Ascends But Remains Behind Market: Some Facts to Note
In the latest trading session, General Dynamics (GD) closed at $253.20, marking a +0.31% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.46%. Elsewhere, the Dow saw an upswing of 0.48%, while the tech-heavy Nasdaq appreciated by 0.7%.
Shares of the defense contractor have appreciated by 2.34% over the course of the past month, underperforming the Aerospace sector's gain of 7.78% and the S&P 500's gain of 4.85%.
Investors will be eagerly watching for the performance of General Dynamics in its upcoming earnings disclosure. The company is forecasted to report an EPS of $4.19, showcasing a 17.04% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $12.48 billion, showing a 15.02% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $12.56 per share and a revenue of $42.99 billion, demonstrating changes of +3.04% and +9.1%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for General Dynamics. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.25% decrease. General Dynamics is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, General Dynamics is holding a Forward P/E ratio of 20.09. Its industry sports an average Forward P/E of 17.16, so one might conclude that General Dynamics is trading at a premium comparatively.
It's also important to note that GD currently trades at a PEG ratio of 2.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Aerospace - Defense industry stood at 1.92 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 18% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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General Dynamics Corporation (GD) : Free Stock Analysis Report
