In the latest market close, General Dynamics (GD) reached $261.47, with a +0.7% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.16%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.
The the stock of defense contractor has fallen by 1.49% in the past month, leading the Aerospace sector's loss of 3.38% and the S&P 500's loss of 2.7%.
Analysts and investors alike will be keeping a close eye on the performance of General Dynamics in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $4.29, marking a 17.86% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $13.35 billion, indicating a 14.39% increase compared to the same quarter of the previous year.
Investors should also note any recent changes to analyst estimates for General Dynamics. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.51% fall in the Zacks Consensus EPS estimate. General Dynamics presently features a Zacks Rank of #4 (Sell).
Investors should also note General Dynamics's current valuation metrics, including its Forward P/E ratio of 16.38. This denotes a discount relative to the industry's average Forward P/E of 17.57.
We can additionally observe that GD currently boasts a PEG ratio of 1.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.39.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 31% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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General Dynamics Corporation (GD) : Free Stock Analysis Report
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