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General Dynamics (GD) Gains But Lags Market: What You Should Know
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In the latest trading session, General Dynamics (GD - Free Report) closed at $220.58, marking a +0.46% move from the previous day. The stock lagged the S&P 500's daily gain of 1.5%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 0.32%.
Prior to today's trading, shares of the defense contractor had lost 5.1% over the past month. This has lagged the Aerospace sector's loss of 3.96% and was narrower than the S&P 500's loss of 6.54% in that time.
Wall Street will be looking for positivity from General Dynamics as it approaches its next earnings report date. On that day, General Dynamics is projected to report earnings of $2.72 per share, which would represent year-over-year growth of 4.21%. Meanwhile, our latest consensus estimate is calling for revenue of $9.43 billion, up 2.29% from the prior-year quarter.
GD's full-year Zacks Consensus Estimates are calling for earnings of $12.12 per share and revenue of $39.5 billion. These results would represent year-over-year changes of +4.94% and +2.69%, respectively.
Investors might also notice recent changes to analyst estimates for General Dynamics. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.3% lower. General Dynamics is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, General Dynamics is currently trading at a Forward P/E ratio of 18.11. For comparison, its industry has an average Forward P/E of 17.21, which means General Dynamics is trading at a premium to the group.
Also, we should mention that GD has a PEG ratio of 1.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense was holding an average PEG ratio of 2.06 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 28% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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General Dynamics (GD) Gains But Lags Market: What You Should Know
In the latest trading session, General Dynamics (GD - Free Report) closed at $220.58, marking a +0.46% move from the previous day. The stock lagged the S&P 500's daily gain of 1.5%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 0.32%.
Prior to today's trading, shares of the defense contractor had lost 5.1% over the past month. This has lagged the Aerospace sector's loss of 3.96% and was narrower than the S&P 500's loss of 6.54% in that time.
Wall Street will be looking for positivity from General Dynamics as it approaches its next earnings report date. On that day, General Dynamics is projected to report earnings of $2.72 per share, which would represent year-over-year growth of 4.21%. Meanwhile, our latest consensus estimate is calling for revenue of $9.43 billion, up 2.29% from the prior-year quarter.
GD's full-year Zacks Consensus Estimates are calling for earnings of $12.12 per share and revenue of $39.5 billion. These results would represent year-over-year changes of +4.94% and +2.69%, respectively.
Investors might also notice recent changes to analyst estimates for General Dynamics. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.3% lower. General Dynamics is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, General Dynamics is currently trading at a Forward P/E ratio of 18.11. For comparison, its industry has an average Forward P/E of 17.21, which means General Dynamics is trading at a premium to the group.
Also, we should mention that GD has a PEG ratio of 1.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense was holding an average PEG ratio of 2.06 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 28% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.