Back to top

Image: Bigstock

General Dynamics (GD) Ascends But Remains Behind Market: Some Facts to Note

Read MoreHide Full Article

In the latest trading session, General Dynamics (GD - Free Report) closed at $299.45, marking a +0.72% move from the previous day. This move lagged the S&P 500's daily gain of 1.19%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq increased by 1.96%.

Heading into today, shares of the defense contractor had gained 1.35% over the past month, lagging the Aerospace sector's gain of 3.34% and the S&P 500's gain of 3.35% in that time.

Investors will be eagerly watching for the performance of General Dynamics in its upcoming earnings disclosure. The company is expected to report EPS of $3.34, up 23.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.49 billion, up 13.17% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.55 per share and revenue of $46.72 billion. These totals would mark changes of +21.05% and +10.53%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for General Dynamics. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, General Dynamics holds a Zacks Rank of #3 (Hold).

Digging into valuation, General Dynamics currently has a Forward P/E ratio of 20.43. This signifies a premium in comparison to the average Forward P/E of 18.22 for its industry.

It is also worth noting that GD currently has a PEG ratio of 1.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Aerospace - Defense industry currently had an average PEG ratio of 1.8 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 36% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

See More Zacks Research for These Tickers

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

General Dynamics Corporation (GD) - free report >>

Published in