General Dynamics (GD) Stock Sinks As Market Gains: Here's Why
The most recent trading session ended with General Dynamics (GD) standing at $253.82, reflecting a -0.03% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 1.41%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 2.2%.
Shares of the defense contractor have appreciated by 0.64% over the course of the past month, underperforming the Aerospace sector's gain of 2.66% and the S&P 500's gain of 2.9%.
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 upcoming EPS is projected at $4.15, signifying a 15.92% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.37 billion, up 14.03% from the year-ago period.
Investors should also pay attention to any latest changes in analyst estimates for General Dynamics. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% higher. Currently, General Dynamics is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, General Dynamics is holding a Forward P/E ratio of 16.97. This expresses a premium compared to the average Forward P/E of 15.92 of its industry.
We can also see that GD currently has a PEG ratio of 1.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. GD's industry had an average PEG ratio of 1.85 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 39% echelons 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.
To follow GD in the coming trading sessions, be sure to utilize Zacks.com.
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General Dynamics Corporation (GD) : Free Stock Analysis Report
