General Dynamics (GD) Stock Drops Despite Market Gains: Important Facts to Note

In the latest trading session, General Dynamics (GD) closed at $263.41, marking a -0.86% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.08% for the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.52%.Heading into today, shares of the defense contractor had gained 7.92% over the past month, outpacing the Aerospace sector's gain of 3.49% and the S&P 500's loss of 7.33% in that time.Investors will be eagerly watching for the performance of General Dynamics in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.43, showcasing a 19.1% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $11.75 billion, up 9.54% from the prior-year quarter.For the full year, the Zacks Consensus Estimates are projecting earnings of $14.94 per share and revenue of $50.36 billion, which would represent changes of +9.61% and +5.54%, respectively, from the prior year.Investors should also take note of any recent adjustments to analyst estimates for General Dynamics. 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.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.01% fall in the Zacks Consensus EPS estimate. General Dynamics is currently a Zacks Rank #4 (Sell).In the context of valuation, General Dynamics is at present trading with a Forward P/E ratio of 17.79. This signifies a discount in comparison to the average Forward P/E of 21.7 for its industry.It is also worth noting that GD currently has a PEG ratio of 1.82. 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 industry currently had an average PEG ratio of 1.83 as of yesterday's close.The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 33% of all industries, numbering over 250.The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Dynamics Corporation (GD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks