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General Dynamics (GD) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, General Dynamics (GD - Free Report) closed at $219.69, marking a +1.06% move from the previous day. This move outpaced the S&P 500's daily gain of 0.12%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.29%.
Heading into today, shares of the defense contractor had lost 2.58% over the past month, outpacing the Aerospace sector's loss of 6.41% and lagging the S&P 500's gain of 0.09% 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 $2.87 per share, which would represent a year-over-year decline of 11.96%. Our most recent consensus estimate is calling for quarterly revenue of $9.97 billion, down 0.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.64 per share and revenue of $42.29 billion, which would represent changes of +3.69% and +7.31%, respectively, from the prior year.
Any recent changes to analyst estimates for General Dynamics should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. General Dynamics currently has a Zacks Rank of #3 (Hold).
In terms of valuation, General Dynamics is currently trading at a Forward P/E ratio of 17.2. Its industry sports an average Forward P/E of 15.13, so we one might conclude that General Dynamics is trading at a premium comparatively.
We can also see that GD currently has a PEG ratio of 1.93. 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 1.88 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.
To follow GD in the coming trading sessions, be sure to utilize Zacks.com.
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General Dynamics (GD) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, General Dynamics (GD - Free Report) closed at $219.69, marking a +1.06% move from the previous day. This move outpaced the S&P 500's daily gain of 0.12%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.29%.
Heading into today, shares of the defense contractor had lost 2.58% over the past month, outpacing the Aerospace sector's loss of 6.41% and lagging the S&P 500's gain of 0.09% 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 $2.87 per share, which would represent a year-over-year decline of 11.96%. Our most recent consensus estimate is calling for quarterly revenue of $9.97 billion, down 0.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.64 per share and revenue of $42.29 billion, which would represent changes of +3.69% and +7.31%, respectively, from the prior year.
Any recent changes to analyst estimates for General Dynamics should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. General Dynamics currently has a Zacks Rank of #3 (Hold).
In terms of valuation, General Dynamics is currently trading at a Forward P/E ratio of 17.2. Its industry sports an average Forward P/E of 15.13, so we one might conclude that General Dynamics is trading at a premium comparatively.
We can also see that GD currently has a PEG ratio of 1.93. 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 1.88 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.
To follow GD in the coming trading sessions, be sure to utilize Zacks.com.