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General Dynamics (GD) Gains But Lags Market: What You Should Know

General Dynamics (GD) closed the most recent trading day at $220.45, moving +0.81% from the previous trading session. This change lagged the S&P 500's 1.97% gain on the day. At the same time, the Dow added 1.88%, and the tech-heavy Nasdaq gained 0.25%.

Prior to today's trading, shares of the defense contractor had lost 5.39% over the past month. This has was narrower than the Aerospace sector's loss of 10.83% and the S&P 500's loss of 9.93% in that time.

Wall Street will be looking for positivity from General Dynamics as it approaches its next earnings report date. The company is expected to report EPS of $3.17, up 3.26% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.95 billion, up 3.98% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.16 per share and revenue of $39.48 billion, which would represent changes of +5.28% and +2.63%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for General Dynamics. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. General Dynamics is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note General Dynamics's current valuation metrics, including its Forward P/E ratio of 17.98. This represents a premium compared to its industry's average Forward P/E of 16.96.

Meanwhile, GD's PEG ratio is currently 1.76. 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. The Aerospace - Defense was holding an average PEG ratio of 1.76 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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