In the latest close session, General Dynamics (GD) was up +2.03% at $329.62. The stock exceeded the S&P 500, which registered a gain of 0.85% for the day. Meanwhile, the Dow gained 1.36%, and the Nasdaq, a tech-heavy index, added 0.72%.
The stock of defense contractor has risen by 1.75% in the past month, leading the Aerospace sector's gain of 0.57% and undershooting the S&P 500's gain of 2.38%.
The investment community will be paying close attention to the earnings performance of General Dynamics in its upcoming release. The company's upcoming EPS is projected at $3.69, signifying a 10.15% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $12.51 billion, indicating a 7.15% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.2 per share and revenue of $51.15 billion, which would represent changes of +11.52% and +7.19%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for General Dynamics. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. General Dynamics presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, General Dynamics is holding a Forward P/E ratio of 21.26. This expresses a discount compared to the average Forward P/E of 24.5 of its industry.
We can also see that GD currently has a PEG ratio of 1.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 2.05.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 36% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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General Dynamics Corporation (GD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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