General Dynamics (GD) Stock Sinks As Market Gains: What You Should Know
General Dynamics (GD) closed the most recent trading day at $187.87, moving -0.11% from the previous trading session. This change lagged the S&P 500's 0.03% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.04%.
Coming into today, shares of the defense contractor had gained 3.72% in the past month. In that same time, the Aerospace sector gained 1.98%, while the S&P 500 gained 2.25%.
Investors will be hoping for strength from GD as it approaches its next earnings release. In that report, analysts expect GD to post earnings of $3.06 per share. This would mark year-over-year growth of 5.88%. Our most recent consensus estimate is calling for quarterly revenue of $9.70 billion, up 6.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.88 per share and revenue of $39.24 billion, which would represent changes of +5.88% and +8.43%, respectively, from the prior year.
Any recent changes to analyst estimates for GD should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, the Zacks Consensus EPS estimate remained stagnant. GD is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, GD is currently trading at a Forward P/E ratio of 15.83. This valuation marks a discount compared to its industry's average Forward P/E of 18.01.
It is also worth noting that GD currently has a PEG ratio of 1.81. 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 2.11 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.