General Dynamics (GD) closed at $148.49 in the latest trading session, marking a -1.3% move from the prior day. This move lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.46%.
GD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.16, down 22.02% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.09 billion, down 4.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.17 per share and revenue of $38.77 billion, which would represent changes of -6.76% and -1.48%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for GD. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 4.88% lower within the past month. GD currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, GD is holding a Forward P/E ratio of 13.47. For comparison, its industry has an average Forward P/E of 16.79, which means GD is trading at a discount to the group.
Meanwhile, GD's PEG ratio is currently 2.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense was holding an average PEG ratio of 2.45 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% 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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