In the latest close session, General Dynamics (GD) was up +1.82% at $330.34. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. On the other hand, the Dow registered a gain of 0.65%, and the technology-centric Nasdaq increased by 0.44%.
The defense contractor's stock has dropped by 0.15% in the past month, falling short of the Aerospace sector's gain of 3.8% and the S&P 500's gain of 2.72%.
Investors will be eagerly watching for the performance of General Dynamics in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.69, showcasing a 10.15% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $12.51 billion, up 7.15% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.2 per share and a revenue of $51.15 billion, indicating changes of +11.52% and +7.19%, respectively, from the former 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. General Dynamics currently has a Zacks Rank of #3 (Hold).
Digging into valuation, General Dynamics currently has a Forward P/E ratio of 21.35. This signifies a discount in comparison to the average Forward P/E of 25.08 for its industry.
It's also important to note that GD currently trades at a PEG ratio of 1.99. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Aerospace – Defense stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Aerospace – Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 103, this industry ranks in the top 42% of all industries, numbering over 250.
