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General Dynamics (GD) Rises Yet Lags Behind Market: Some Facts Worth Knowing
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The latest trading session saw General Dynamics (GD - Free Report) ending at $253.89, denoting a +0.4% adjustment from its last day's close. This change lagged the S&P 500's 0.59% gain on the day. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
Shares of the defense contractor have appreciated by 2.88% over the course of the past month, underperforming the Aerospace sector's gain of 6.68% and the S&P 500's gain of 5.16%.
The upcoming earnings release of General Dynamics will be of great interest to investors. The company's earnings per share (EPS) are projected to be $4.19, reflecting a 17.04% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $12.48 billion, indicating a 15.02% upward movement from the same quarter last year.
GD's full-year Zacks Consensus Estimates are calling for earnings of $12.56 per share and revenue of $42.99 billion. These results would represent year-over-year changes of +3.04% and +9.1%, respectively.
It is also important to note the recent changes to analyst estimates for General Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% lower. Currently, General Dynamics is carrying a Zacks Rank of #3 (Hold).
Investors should also note General Dynamics's current valuation metrics, including its Forward P/E ratio of 20.13. This signifies a premium in comparison to the average Forward P/E of 17.68 for its industry.
It's also important to note that GD currently trades at a PEG ratio of 2.25. 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 rate. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.9.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 72, this industry ranks in the top 29% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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General Dynamics (GD) Rises Yet Lags Behind Market: Some Facts Worth Knowing
The latest trading session saw General Dynamics (GD - Free Report) ending at $253.89, denoting a +0.4% adjustment from its last day's close. This change lagged the S&P 500's 0.59% gain on the day. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
Shares of the defense contractor have appreciated by 2.88% over the course of the past month, underperforming the Aerospace sector's gain of 6.68% and the S&P 500's gain of 5.16%.
The upcoming earnings release of General Dynamics will be of great interest to investors. The company's earnings per share (EPS) are projected to be $4.19, reflecting a 17.04% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $12.48 billion, indicating a 15.02% upward movement from the same quarter last year.
GD's full-year Zacks Consensus Estimates are calling for earnings of $12.56 per share and revenue of $42.99 billion. These results would represent year-over-year changes of +3.04% and +9.1%, respectively.
It is also important to note the recent changes to analyst estimates for General Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% lower. Currently, General Dynamics is carrying a Zacks Rank of #3 (Hold).
Investors should also note General Dynamics's current valuation metrics, including its Forward P/E ratio of 20.13. This signifies a premium in comparison to the average Forward P/E of 17.68 for its industry.
It's also important to note that GD currently trades at a PEG ratio of 2.25. 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 rate. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.9.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 72, this industry ranks in the top 29% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.