General Dynamics (GD) Falls More Steeply Than Broader Market: What Investors Need to Know

In the latest trading session, General Dynamics (GD) closed at $352.67, marking a -1.1% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.48%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 0.64%.

Prior to today's trading, shares of the defense contractor had lost 9.01% was narrower than the Aerospace sector's loss of 11.13% and lagged the S&P 500's loss of 0.97%.

Analysts and investors alike will be keeping a close eye on the performance of General Dynamics in its upcoming earnings disclosure. The company is forecasted to report an EPS of $4.14, showcasing a 6.7% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $13.66 billion, reflecting a 5.84% rise from the equivalent quarter last year.

GD's full-year Zacks Consensus Estimates are calling for earnings of $16.95 per share and revenue of $55.8 billion. These results would represent year-over-year changes of +9.64% and +6.19%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for General Dynamics. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Right now, General Dynamics possesses a Zacks Rank of #3 (Hold).

In terms of valuation, General Dynamics is currently trading at a Forward P/E ratio of 21.04. This represents a discount compared to its industry average Forward P/E of 23.08.

One should further note that GD currently holds a PEG ratio of 2.06. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.65.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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