Yahoo Finance General Dynamics (GD) Stock Declines While Market Improves: Some Information for Investors
The most recent trading session ended with General Dynamics (GD) standing at $292.65, reflecting a -0.69% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.27%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.88%.
Coming into today, shares of the defense contractor had gained 0.39% in the past month. In that same time, the Aerospace sector gained 0.26%, while the S&P 500 gained 2.85%.
The investment community will be paying close attention to the earnings performance of General Dynamics in its upcoming release. The company's earnings per share (EPS) are projected to be $3.34, reflecting a 23.7% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $11.49 billion, up 13.17% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $14.55 per share and a revenue of $46.72 billion, demonstrating changes of +21.05% and +10.53%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for General Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. General Dynamics presently features a Zacks Rank of #3 (Hold).
With respect to valuation, General Dynamics is currently being traded at a Forward P/E ratio of 20.25. For comparison, its industry has an average Forward P/E of 18.15, which means General Dynamics is trading at a premium to the group.
It's also important to note that GD currently trades at a PEG ratio of 1.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Aerospace - Defense industry stood at 1.77 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 145, this industry ranks in the bottom 43% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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General Dynamics Corporation (GD) : Free Stock Analysis Report
