General Dynamics (GD) Registers a Bigger Fall Than the Market: Important Facts to Note
General Dynamics (GD) closed the most recent trading day at $250.65, moving -1.63% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.37%. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, lost 0.19%.
The defense contractor's shares have seen an increase of 0.77% over the last month, surpassing the Aerospace sector's loss of 1.36% and falling behind the S&P 500's gain of 1.56%.
Analysts and investors alike will be keeping a close eye on the performance of General Dynamics in its upcoming earnings disclosure. The company's earnings report is set to go public on January 24, 2024. The company's earnings per share (EPS) are projected to be $3.91, reflecting a 9.22% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $11.92 billion, reflecting a 9.88% rise from the equivalent quarter last year.
Investors might also notice recent changes to analyst estimates for General Dynamics. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.47% higher. General Dynamics is currently a Zacks Rank #3 (Hold).
With respect to valuation, General Dynamics is currently being traded at a Forward P/E ratio of 17. This valuation marks a premium compared to its industry's average Forward P/E of 16.59.
We can additionally observe that GD currently boasts a PEG ratio of 1.89. 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. As the market closed yesterday, the Aerospace - Defense industry was having an average PEG ratio of 1.85.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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General Dynamics Corporation (GD) : Free Stock Analysis Report
