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General Dynamics (GD) Rises Higher Than Market: Key Facts

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In the latest close session, General Dynamics (GD - Free Report) was up +1.82% at $330.34. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. On the other hand, the Dow registered a gain of 0.65%, and the technology-centric Nasdaq increased by 0.44%.

The defense contractor's stock has dropped by 0.15% in the past month, falling short of the Aerospace sector's gain of 3.8% and the S&P 500's gain of 2.72%.

Investors will be eagerly watching for the performance of General Dynamics in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.69, showcasing a 10.15% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $12.51 billion, up 7.15% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.2 per share and a revenue of $51.15 billion, indicating changes of +11.52% and +7.19%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for General Dynamics. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. General Dynamics currently has a Zacks Rank of #3 (Hold).

Digging into valuation, General Dynamics currently has a Forward P/E ratio of 21.35. This signifies a discount in comparison to the average Forward P/E of 25.08 for its industry.

It's also important to note that GD currently trades at a PEG ratio of 1.99. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.

The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 103, this industry ranks in the top 42% of all industries, numbering over 250.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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