The latest trading session saw General Dynamics (GD) ending at $275.20, denoting a +0.57% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.39%.
Heading into today, shares of the defense contractor had gained 0.56% over the past month, lagging the Aerospace sector's gain of 10.75% and the S&P 500's gain of 6.69% in that time.
The upcoming earnings release of General Dynamics will be of great interest to investors. The company is predicted to post an EPS of $3.46, indicating a 6.13% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $12.05 billion, up 0.59% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.91 per share and revenue of $50.47 billion. These totals would mark changes of +9.39% and +5.76%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for General Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Currently, General Dynamics is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, General Dynamics is at present trading with a Forward P/E ratio of 18.35. This indicates a discount in contrast to its industry's Forward P/E of 22.42.
It's also important to note that GD currently trades at a PEG ratio of 1.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 40, finds itself in the top 17% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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