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General Dynamics (GD) closed the most recent trading day at $210.45, moving -1.38% from the previous trading session. This change lagged the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.28%.
Prior to today's trading, shares of the defense contractor had lost 2.08% over the past month. This has lagged the Aerospace sector's gain of 2.13% and the S&P 500's gain of 1.51% in that time.
Investors will be hoping for strength from General Dynamics as it approaches its next earnings release, which is expected to be July 27, 2022. The company is expected to report EPS of $2.72, up 4.21% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.43 billion, up 2.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.12 per share and revenue of $39.5 billion, which would represent changes of +4.94% and +2.69%, respectively, from the prior year.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% lower. General Dynamics is currently a Zacks Rank #4 (Sell).
Investors should also note General Dynamics's current valuation metrics, including its Forward P/E ratio of 17.6. For comparison, its industry has an average Forward P/E of 16.69, which means General Dynamics is trading at a premium to the group.
Meanwhile, GD's PEG ratio is currently 1.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.01 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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