General Dynamics (GD) Outpaces Stock Market Gains: What You Should Know
In the latest market close, General Dynamics (GD) reached $257.43, with a +0.48% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.16%.
Prior to today's trading, shares of the defense contractor had gained 4.48% over the past month. This has lagged the Aerospace sector's gain of 6.41% and the S&P 500's gain of 4.89% in that time.
The investment community will be closely monitoring the performance of General Dynamics in its forthcoming earnings report. 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. Meanwhile, the latest consensus estimate predicts the revenue to be $12.48 billion, indicating a 15.02% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.56 per share and revenue of $42.99 billion. These totals would mark changes of +3.04% and +9.1%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for General Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.18% lower. General Dynamics is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, General Dynamics is currently being traded at a Forward P/E ratio of 20.39. This valuation marks a premium compared to its industry's average Forward P/E of 18.33.
We can additionally observe that GD currently boasts a PEG ratio of 2.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense was holding an average PEG ratio of 1.92 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 22% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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General Dynamics Corporation (GD) : Free Stock Analysis Report
