General Dynamics (GD) closed at $364.11 in the latest trading session, marking a +1.27% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.57%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 1.15%.
Prior to today's trading, shares of the defense contractor had gained 4.79% lagged the Aerospace sector's gain of 8.09% and outpaced the S&P 500's gain of 2.14%.
The upcoming earnings release of General Dynamics will be of great interest to investors. It is anticipated that the company will report an EPS of $3.93, marking a 5.08% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $13.43 billion, indicating a 2.97% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $16.58 per share and revenue of $55 billion, indicating changes of +7.24% and +4.65%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for General Dynamics. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, General Dynamics holds a Zacks Rank of #3 (Hold).
With respect to valuation, General Dynamics is currently being traded at a Forward P/E ratio of 21.69. This denotes a discount relative to the industry average Forward P/E of 24.92.
We can also see that GD currently has a PEG ratio of 2.24. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.53.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 97, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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General Dynamics Corporation (GD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).