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Are Investors Undervaluing General Dynamics (GD) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
General Dynamics (GD - Free Report) is a stock many investors are watching right now. 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 15.04. This compares to its industry's average Forward P/E of 17.85. Over the last 12 months, GD's Forward P/E has been as high as 17.25 and as low as 12.26, with a median of 14.45.
We also note that GD holds a PEG ratio of 1.69. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GD's industry has an average PEG of 1.86 right now. Over the past 52 weeks, GD's PEG has been as high as 1.79 and as low as 1.15, with a median of 1.51.
These figures are just a handful of the metrics value investors tend to look at, but they help show that General Dynamics is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GD feels like a great value stock at the moment.
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Are Investors Undervaluing General Dynamics (GD) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
General Dynamics (GD - Free Report) is a stock many investors are watching right now. 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 15.04. This compares to its industry's average Forward P/E of 17.85. Over the last 12 months, GD's Forward P/E has been as high as 17.25 and as low as 12.26, with a median of 14.45.
We also note that GD holds a PEG ratio of 1.69. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GD's industry has an average PEG of 1.86 right now. Over the past 52 weeks, GD's PEG has been as high as 1.79 and as low as 1.15, with a median of 1.51.
These figures are just a handful of the metrics value investors tend to look at, but they help show that General Dynamics is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GD feels like a great value stock at the moment.