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In the latest trading session, General Dynamics (GD) closed at $263.41, marking a -0.86% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.08% for the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.52%.
Heading into today, shares of the defense contractor had gained 7.92% over the past month, outpacing the Aerospace sector's gain of 3.49% and the S&P 500's loss of 7.33% in that time.
Investors will be eagerly watching for the performance of General Dynamics in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.43, showcasing a 19.1% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $11.75 billion, up 9.54% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.94 per share and revenue of $50.36 billion, which would represent changes of +9.61% and +5.54%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.01% fall in the Zacks Consensus EPS estimate. General Dynamics is currently a Zacks Rank #4 (Sell).
In the context of valuation, General Dynamics is at present trading with a Forward P/E ratio of 17.79. This signifies a discount in comparison to the average Forward P/E of 21.7 for its industry.
It is also worth noting that GD currently has a PEG ratio of 1.82. 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. The Aerospace - Defense industry currently had an average PEG ratio of 1.83 as of yesterday's close.