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General Dynamics (GD) Laps the Stock Market: Here's Why
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General Dynamics (GD - Free Report) closed the most recent trading day at $282.55, moving +1.02% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.89% for the day. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq appreciated by 1.25%.
Coming into today, shares of the defense contractor had gained 4% in the past month. In that same time, the Aerospace sector gained 1.08%, while the S&P 500 gained 3.56%.
Market participants will be closely following the financial results of General Dynamics in its upcoming release. The company is expected to report EPS of $3.18, up 20.45% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.75 billion, up 8.76% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $14.60 per share and a revenue of $46.54 billion, demonstrating changes of +21.46% and +10.1%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for General Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.17% decrease. At present, General Dynamics boasts a Zacks Rank of #4 (Sell).
In the context of valuation, General Dynamics is at present trading with a Forward P/E ratio of 19.16. This expresses a premium compared to the average Forward P/E of 18.28 of its industry.
One should further note that GD currently holds a PEG ratio of 1.78. 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. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.93.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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General Dynamics (GD) Laps the Stock Market: Here's Why
General Dynamics (GD - Free Report) closed the most recent trading day at $282.55, moving +1.02% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.89% for the day. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq appreciated by 1.25%.
Coming into today, shares of the defense contractor had gained 4% in the past month. In that same time, the Aerospace sector gained 1.08%, while the S&P 500 gained 3.56%.
Market participants will be closely following the financial results of General Dynamics in its upcoming release. The company is expected to report EPS of $3.18, up 20.45% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.75 billion, up 8.76% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $14.60 per share and a revenue of $46.54 billion, demonstrating changes of +21.46% and +10.1%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for General Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.17% decrease. At present, General Dynamics boasts a Zacks Rank of #4 (Sell).
In the context of valuation, General Dynamics is at present trading with a Forward P/E ratio of 19.16. This expresses a premium compared to the average Forward P/E of 18.28 of its industry.
One should further note that GD currently holds a PEG ratio of 1.78. 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. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.93.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.