General Dynamics (GD) closed the latest trading day at $275.15, indicating a -0.9% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.19%. On the other hand, the Dow registered a loss of 0.55%, and the technology-centric Nasdaq decreased by 0.18%.
The the stock of defense contractor has fallen by 9.99% in the past month, lagging the Aerospace sector's gain of 2.4% and the S&P 500's gain of 6.66%.
The upcoming earnings release of General Dynamics will be of great interest to investors. The company's upcoming EPS is projected at $4.39, signifying a 20.6% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $13.44 billion, indicating a 15.21% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.89 per share and revenue of $47.87 billion, which would represent changes of +15.56% and +13.25%, respectively, from the prior year.
Investors might also notice 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.74% decrease. General Dynamics currently has a Zacks Rank of #3 (Hold).
Investors should also note General Dynamics's current valuation metrics, including its Forward P/E ratio of 20. This valuation marks a premium compared to its industry's average Forward P/E of 19.42.
We can additionally observe that GD currently boasts a PEG ratio of 1.71. 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. The Aerospace - Defense was holding an average PEG ratio of 1.71 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 178, positioning it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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