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General Dynamics (GD) Stock Moves 0.4%: What You Should Know

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The latest trading session saw General Dynamics (GD - Free Report) ending at $297.83, denoting a +0.4% adjustment from its last day's close. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, lost 0.23%.

The defense contractor's shares have seen a decrease of 0.69% over the last month, not keeping up with the Aerospace sector's gain of 3.2% and the S&P 500's gain of 2.55%.

The investment community will be paying close attention to the earnings performance of General Dynamics in its upcoming release. The company is forecasted to report an EPS of $3.76, showcasing a 23.68% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $12.2 billion, up 15.45% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.52 per share and a revenue of $47.96 billion, representing changes of +20.8% and +13.47%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for General Dynamics. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.1% upward. General Dynamics is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, General Dynamics is presently trading at a Forward P/E ratio of 20.43. Its industry sports an average Forward P/E of 20.46, so one might conclude that General Dynamics is trading at a discount comparatively.

Investors should also note that GD has a PEG ratio of 1.62 right now. 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. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.88.

The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 50, placing it within the top 20% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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