General Dynamics (GD) closed the most recent trading day at $206.54, moving -1.17% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 1.89%. At the same time, the Dow lost 1.3%, and the tech-heavy Nasdaq lost 0.17%.
Prior to today’s trading, shares of the defense contractor had gained 2.1% over the past month. This has lagged the Aerospace sector’s gain of 7% and outpaced the S&P 500’s loss of 1.79% in that time.
Investors will be hoping for strength from General Dynamics as it approaches its next earnings release, which is expected to be January 26, 2022. In that report, analysts expect General Dynamics to post earnings of $3.37 per share. This would mark a year-over-year decline of 3.44%. Our most recent consensus estimate is calling for quarterly revenue of $10.7 billion, up 2.1% from the year-ago period.
Investors should also note any recent changes to analyst estimates for General Dynamics. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 past month, the Zacks Consensus EPS estimate has moved 0.11% lower. General Dynamics is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, General Dynamics currently has a Forward P/E ratio of 16.76. This valuation marks a premium compared to its industry’s average Forward P/E of 16.7.
Meanwhile, GD’s PEG ratio is currently 1.85. 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. The Aerospace – Defense was holding an average PEG ratio of 2.3 at yesterday’s closing price.
The Aerospace – Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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