General Dynamics (GD) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, General Dynamics (GD) closed at $248.73, marking a -0.36% move from the previous day. This move lagged the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the defense contractor had gained 2.8% in the past month. In that same time, the Aerospace sector gained 3.6%, while the S&P 500 gained 0.09%.
General Dynamics will be looking to display strength as it nears its next earnings release. On that day, General Dynamics is projected to report earnings of $3.55 per share, which would represent year-over-year growth of 4.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.73 billion, up 4.25% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.16 per share and revenue of $39.29 billion, which would represent changes of +5.28% and +2.12%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for General Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. General Dynamics is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that General Dynamics has a Forward P/E ratio of 20.53 right now. This valuation marks a discount compared to its industry's average Forward P/E of 21.72.
Investors should also note that GD has a PEG ratio of 2.21 right now. 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 2.21 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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General Dynamics Corporation (GD) : Free Stock Analysis Report
