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General Dynamics (GD) Stock Moves -0.32%: What You Should Know

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General Dynamics (GD - Free Report) closed at $265.22 in the latest trading session, marking a -0.32% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.39%. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq depreciated by 0.32%.

The defense contractor's shares have seen a decrease of 6.97% over the last month, not keeping up with the Aerospace sector's gain of 0.56% and the S&P 500's gain of 3.6%.

The investment community will be closely monitoring the performance of General Dynamics in its forthcoming earnings report. On that day, General Dynamics is projected to report earnings of $4.33 per share, which would represent year-over-year growth of 18.96%. In the meantime, our current consensus estimate forecasts the revenue to be $13.46 billion, indicating a 15.32% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $13.84 per share and a revenue of $47.83 billion, demonstrating changes of +15.14% and +13.16%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for General Dynamics. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. The Zacks Consensus EPS estimate has moved 1% lower within the past month. General Dynamics is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, General Dynamics is presently trading at a Forward P/E ratio of 19.23. This denotes a premium relative to the industry's average Forward P/E of 18.69.

We can additionally observe that GD currently boasts a PEG ratio of 1.64. 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 was holding an average PEG ratio of 1.64 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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