General Dynamics (GD) Dips More Than Broader Markets: What You Should Know
In the latest trading session, General Dynamics (GD) closed at $216.75, marking a -1.4% move from the previous day. This change lagged the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.87%, and the Nasdaq, a tech-heavy index, added 2.77%.
Coming into today, shares of the defense contractor had lost 5.27% in the past month. In that same time, the Aerospace sector lost 3.19%, while the S&P 500 lost 5.06%.
Investors will be hoping for strength from General Dynamics as it approaches its next earnings release. On that day, General Dynamics is projected to report earnings of $2.71 per share, which would represent year-over-year growth of 3.83%. Our most recent consensus estimate is calling for quarterly revenue of $9.56 billion, up 1.74% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.90 per share and revenue of $41.15 billion. These totals would mark changes of +5.82% and +4.42%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for General Dynamics. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. General Dynamics currently has a Zacks Rank of #4 (Sell).
Digging into valuation, General Dynamics currently has a Forward P/E ratio of 17.04. This represents a discount compared to its industry's average Forward P/E of 17.31.
Meanwhile, GD's PEG ratio is currently 1.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.88 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GD in the coming trading sessions, be sure to utilize Zacks.com.
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General Dynamics Corporation (GD) : Free Stock Analysis Report
