General Dynamics (GD) Rises But Trails Market: What Investors Should Know
The latest trading session saw General Dynamics (GD) ending at $252.87, denoting a +0.13% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.45% for the day.
Analysts and investors alike will be keeping a close eye on the performance of General Dynamics in its upcoming earnings disclosure. The company is predicted to post an EPS of $4.19, indicating a 17.04% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $12.48 billion, indicating a 15.02% upward movement from the same quarter last year.
GD's full-year Zacks Consensus Estimates are calling for earnings of $12.56 per share and revenue of $42.99 billion. These results would represent year-over-year changes of +3.04% and +9.1%, respectively.
Investors might also notice recent changes to analyst estimates for General Dynamics. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 0.25% lower. General Dynamics presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that General Dynamics has a Forward P/E ratio of 20.1 right now. This denotes a premium relative to the industry's average Forward P/E of 17.53.
It's also important to note that GD currently trades at a PEG ratio of 2.24. 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. The Aerospace - Defense industry currently had an average PEG ratio of 1.92 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% 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.
To follow GD in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
General Dynamics Corporation (GD) : Free Stock Analysis Report
