In the latest trading session, General Dynamics (GD) closed at $214.18, marking a +1.6% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.38%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, lost 4.19%.
Prior to today's trading, shares of the defense contractor had lost 0.18% over the past month. This has lagged the Aerospace sector's gain of 1.36% and the S&P 500's gain of 3.78% in that time.
Investors will be hoping for strength from General Dynamics as it approaches its next earnings release. On that day, General Dynamics is projected to report earnings of $2.63 per share, which would represent a year-over-year decline of 4.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.45 billion, up 2.84% from the year-ago period.
GD's full-year Zacks Consensus Estimates are calling for earnings of $12.66 per share and revenue of $41.37 billion. These results would represent year-over-year changes of +3.86% and +4.98%, respectively.
It is also important to note the recent changes to analyst estimates for General Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% lower. General Dynamics is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, General Dynamics is holding a Forward P/E ratio of 16.65. This valuation marks a premium compared to its industry's average Forward P/E of 16.06.
It is also worth noting that GD currently has a PEG ratio of 1.86. 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. The Aerospace - Defense industry currently had an average PEG ratio of 1.78 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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