Yahoo Finance General Dynamics (GD) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, General Dynamics (GD) closed at $225.02, marking a -1.1% move from the previous day. This change lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.98%.
Coming into today, shares of the defense contractor had gained 3.37% in the past month. In that same time, the Aerospace sector gained 2.18%, while the S&P 500 gained 4.59%.
Wall Street will be looking for positivity from General Dynamics as it approaches its next earnings report date. This is expected to be April 26, 2023. On that day, General Dynamics is projected to report earnings of $2.56 per share, which would represent a year-over-year decline of 1.92%. Our most recent consensus estimate is calling for quarterly revenue of $9.32 billion, down 0.75% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.69 per share and revenue of $41.04 billion, which would represent changes of +4.1% and +4.15%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for General Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.33% lower. General Dynamics currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that General Dynamics has a Forward P/E ratio of 17.92 right now. Its industry sports an average Forward P/E of 17.21, so we one might conclude that General Dynamics is trading at a premium comparatively.
Also, we should mention that GD has a PEG ratio of 2.09. 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 1.88 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% 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.
To follow GD in the coming trading sessions, be sure to utilize Zacks.com.
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General Dynamics Corporation (GD) : Free Stock Analysis Report
