General Dynamics (GD) closed the most recent trading day at $282.55, moving +1.02% from the previous trading session. The stock outperformed the S&P 500, which registered a gain of 0.89% for the day. Elsewhere, the Dow saw an increase of 1.03%, while the technology-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 closely follow General Dynamics’ financial results in its next release. The company is expected to report EPS of $3.18, up 20.45% from the previous quarter. Meanwhile, our latest consensus estimate calls for revenue of $10.75 billion, up 8.76% from the previous quarter.
For the full year, the Zacks Consensus Estimates project earnings of $14.60 per share and revenue of $46.54 billion, showing changes of +21.46% and +10.1%, respectively, from the previous year.
It is also important for investors to be aware of any recent changes to analyst estimates for General Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, positive revisions in ratings convey analysts’ confidence in the company’s business performance and profit potential.
Our research suggests that these changes in valuations have a direct relationship with upcoming stock price performance. Investors can take advantage of this by using the Zacks Rank. This model takes these rating changes into account and provides a simple, reasonable rating system.
The Zacks Rank system, which ranges between #1 (Strong Buy) and #5 (Strong Sell), has an impressive 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 seen a decrease of 0.17%. Currently, General Dynamics boasts a Zacks Rank of #4 (Sell).
In the context of valuation, General Dynamics currently trades with a Forward P/E ratio of 19.16. This represents a premium compared to its industry’s average Forward P/E of 18.28.
It should be further noted 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. 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 with a Zacks Industry Rank of 59, is in the top 24% tiers of all 250+ industries.
The Zacks Industry Rank assesses the strength of our particular industry groups by determining the average Zacks Rank of the individual stocks that make up 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 metrics, and many more, at Zacks.com.
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General Dynamics Corporation (GD): Free Analysis Report
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