General Dynamics (GD) ended the recent trading session at $360.70, demonstrating a -1.48% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.57%. On the other hand, the Dow registered a loss of 1.61%, and the technology-centric Nasdaq decreased by 0.26%.
The defense contractor's shares have seen an increase of 3.61% over the last month, not keeping up with the Aerospace sector's gain of 7.46% and outstripping the S&P 500's loss of 0.15%.
Market participants will be closely following the financial results of General Dynamics in its upcoming release. The company is expected to report EPS of $3.72, up 1.64% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.63 billion, up 3.32% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $16.57 per share and a revenue of $54.73 billion, representing changes of +7.18% and +4.14%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for General Dynamics. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Currently, General Dynamics is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, General Dynamics is currently exchanging hands at a Forward P/E ratio of 22.09. Its industry sports an average Forward P/E of 25.44, so one might conclude that General Dynamics is trading at a discount comparatively.
One should further note that GD currently holds a PEG ratio of 2.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense industry had an average PEG ratio of 2.15 as trading concluded yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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