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Are Investors Undervaluing General Dynamics (GD) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is General Dynamics (GD - Free Report) . GD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.45. This compares to its industry's average Forward P/E of 18.59. GD's Forward P/E has been as high as 20.42 and as low as 15.05, with a median of 16.53, all within the past year.
Finally, our model also underscores that GD has a P/CF ratio of 14.27. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. GD's P/CF compares to its industry's average P/CF of 18.52. Over the past year, GD's P/CF has been as high as 16.70 and as low as 13.17, with a median of 14.63.
These are only a few of the key metrics included in General Dynamics's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GD looks like an impressive value stock at the moment.
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Are Investors Undervaluing General Dynamics (GD) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is General Dynamics (GD - Free Report) . GD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 15.45. This compares to its industry's average Forward P/E of 18.59. GD's Forward P/E has been as high as 20.42 and as low as 15.05, with a median of 16.53, all within the past year.
Finally, our model also underscores that GD has a P/CF ratio of 14.27. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. GD's P/CF compares to its industry's average P/CF of 18.52. Over the past year, GD's P/CF has been as high as 16.70 and as low as 13.17, with a median of 14.63.
These are only a few of the key metrics included in General Dynamics's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GD looks like an impressive value stock at the moment.