Back to top

Image: Bigstock

General Dynamics (GD) Stock Moves -0.4%: What You Should Know

Read MoreHide Full Article

General Dynamics (GD - Free Report) closed at $228.20 in the latest trading session, marking a -0.4% move from the prior day. This change was narrower than the S&P 500's 1.71% loss on the day. Meanwhile, the Dow lost 1.7%, and the Nasdaq, a tech-heavy index, lost 0.09%.

Coming into today, shares of the defense contractor had lost 2.09% in the past month. In that same time, the Aerospace sector lost 6.39%, while the S&P 500 lost 8.68%.

Investors will be hoping for strength from General Dynamics as it approaches its next earnings release. On that day, General Dynamics is projected to report earnings of $3.17 per share, which would represent year-over-year growth of 3.26%. Our most recent consensus estimate is calling for quarterly revenue of $9.95 billion, up 3.98% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.16 per share and revenue of $39.48 billion, which would represent changes of +5.28% and +2.63%, respectively, from the prior year.

Any recent changes to analyst estimates for General Dynamics should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. General Dynamics is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that General Dynamics has a Forward P/E ratio of 18.84 right now. This represents a premium compared to its industry's average Forward P/E of 17.78.

Investors should also note that GD has a PEG ratio of 1.85 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


General Dynamics Corporation (GD) - free report >>

Published in