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General Dynamics (GD) Stock Sinks As Market Gains: What You Should Know
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General Dynamics (GD - Free Report) closed the most recent trading day at $227.06, moving -1.27% from the previous trading session. This change lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 1.54%.
Prior to today's trading, shares of the defense contractor had lost 0.85% over the past month. This has lagged the Aerospace sector's gain of 0.32% and was narrower than the S&P 500's loss of 4.07% in that time.
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 $2.71 per share, which would represent year-over-year growth of 3.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.56 billion, up 1.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.90 per share and revenue of $41.15 billion, which would represent changes of +5.82% and +4.42%, respectively, from the prior year.
Any recent changes to analyst estimates for General Dynamics should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 0.11% lower. General Dynamics is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note General Dynamics's current valuation metrics, including its Forward P/E ratio of 17.82. Its industry sports an average Forward P/E of 17.83, so we one might conclude that General Dynamics is trading at a discount comparatively.
Meanwhile, GD's PEG ratio is currently 2.07. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.96 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 147, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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General Dynamics (GD) Stock Sinks As Market Gains: What You Should Know
General Dynamics (GD - Free Report) closed the most recent trading day at $227.06, moving -1.27% from the previous trading session. This change lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 1.54%.
Prior to today's trading, shares of the defense contractor had lost 0.85% over the past month. This has lagged the Aerospace sector's gain of 0.32% and was narrower than the S&P 500's loss of 4.07% in that time.
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 $2.71 per share, which would represent year-over-year growth of 3.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.56 billion, up 1.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.90 per share and revenue of $41.15 billion, which would represent changes of +5.82% and +4.42%, respectively, from the prior year.
Any recent changes to analyst estimates for General Dynamics should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 0.11% lower. General Dynamics is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note General Dynamics's current valuation metrics, including its Forward P/E ratio of 17.82. Its industry sports an average Forward P/E of 17.83, so we one might conclude that General Dynamics is trading at a discount comparatively.
Meanwhile, GD's PEG ratio is currently 2.07. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.96 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 147, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.