General Dynamics (GD) closed at $225.55 in the latest trading session, marking a +1.21% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.94%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 1.53%.
Prior to today's trading, shares of the defense contractor had lost 0.64% over the past month. This has was narrower than the Aerospace sector's loss of 4.36% and lagged the S&P 500's gain of 1.85% in that time.
General Dynamics will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.87, down 11.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.9 billion, down 0.76% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.64 per share and revenue of $42.47 billion. These totals would mark changes of +3.69% and +7.79%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. General Dynamics is currently a Zacks Rank #3 (Hold).
Looking at its valuation, General Dynamics is holding a Forward P/E ratio of 17.63. This valuation marks a premium compared to its industry's average Forward P/E of 15.35.
It is also worth noting that GD currently has a PEG ratio of 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 1.82 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 86, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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