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General Dynamics (GD) Gains As Market Dips: What You Should Know

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In the latest trading session, General Dynamics (GD - Free Report) closed at $251.95, marking a +0.42% move from the previous day. This move outpaced the S&P 500's daily loss of 0.39%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.59%.

Shares of the defense contractor have appreciated by 3.36% over the course of the past month, underperforming the Aerospace sector's gain of 6.06% and the S&P 500's gain of 5.08%.

Analysts and investors alike will be keeping a close eye on the performance of General Dynamics in its upcoming earnings disclosure. The company is forecasted to report an EPS of $4.21, showcasing a 17.6% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $12.48 billion, up 15.02% from the prior-year quarter.

GD's full-year Zacks Consensus Estimates are calling for earnings of $12.58 per share and revenue of $42.99 billion. These results would represent year-over-year changes of +3.2% and +9.1%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for General Dynamics. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. General Dynamics currently has a Zacks Rank of #3 (Hold).

With respect to valuation, General Dynamics is currently being traded at a Forward P/E ratio of 19.94. Its industry sports an average Forward P/E of 17.25, so one might conclude that General Dynamics is trading at a premium comparatively.

One should further note that GD currently holds a PEG ratio of 2.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.

The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 76, placing it within the top 31% of over 250 industries.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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