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General Dynamics (GD) closed at $251.62 in the latest trading session, marking a +0.95% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 1.59%. On the other hand, the Dow registered a loss of 0.45%, and the technology-centric Nasdaq decreased by 2.78%.
Coming into today, shares of the defense contractor had lost 0.88% in the past month. In that same time, the Aerospace sector lost 4.24%, while the S&P 500 lost 2.23%.
The upcoming earnings release of General Dynamics will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.43, reflecting a 19.1% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $11.75 billion, indicating a 9.54% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.94 per share and a revenue of $50.36 billion, representing changes of +9.61% and +5.54%, respectively, from the prior year.
Any recent changes to analyst estimates for General Dynamics should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 has moved 6.83% lower. General Dynamics currently has a Zacks Rank of #4 (Sell).
Digging into valuation, General Dynamics currently has a Forward P/E ratio of 16.69. This indicates a discount in contrast to its industry's Forward P/E of 17.63.
We can additionally observe that GD currently boasts a PEG ratio of 1.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Aerospace - Defense industry stood at 1.85 at the close of the market yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.