General Dynamics (GD) closed at $344.08 in the latest trading session, marking a +2.09% move from the prior day. This change outpaced the S&P 500's 1.09% loss on the day. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 2.15%.
Shares of the defense contractor witnessed a loss of 5.32% over the previous month, trailing the performance of the Aerospace sector with its loss of 4.47%, and the S&P 500's gain of 2.44%.
The investment community will be paying close attention to the earnings performance of General Dynamics in its upcoming release. The company is slated to reveal its earnings on October 30, 2026. The company is expected to report EPS of $4.14, up 6.7% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $13.71 billion, indicating a 6.2% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $16.94 per share and revenue of $55.8 billion. These totals would mark changes of +9.57% and +6.19%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for General Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% decrease. General Dynamics presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that General Dynamics has a Forward P/E ratio of 19.9 right now. This signifies a discount in comparison to the average Forward P/E of 21.97 for its industry.
We can also see that GD currently has a PEG ratio of 1.95. 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. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.59.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% 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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This article originally published on Zacks Investment Research (zacks.com).