Here's Why General Dynamics (GD) Gained But Lagged the Market Today
The most recent trading session ended with General Dynamics (GD) standing at $274.65, reflecting a +0.5% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1.12%. On the other hand, the Dow registered a gain of 0.61%, and the technology-centric Nasdaq increased by 1.54%.
Heading into today, shares of the defense contractor had gained 1.42% over the past month, outpacing the Aerospace sector's gain of 0.58% and lagging the S&P 500's gain of 2.06% in that time.
Analysts and investors alike will be keeping a close eye on the performance of General Dynamics in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.15, showcasing a 19.32% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $10.75 billion, indicating an 8.76% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.64 per share and revenue of $46.11 billion. These totals would mark changes of +21.8% and +9.08%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for General Dynamics. Recent revisions tend to reflect the latest 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.28% higher within the past month. General Dynamics is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note General Dynamics's current valuation metrics, including its Forward P/E ratio of 18.67. This signifies a premium in comparison to the average Forward P/E of 17.64 for its industry.
Investors should also note that GD has a PEG ratio of 1.73 right now. 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 1.9 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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
