General Dynamics (GD) Stock Sinks As Market Gains: Here's Why

General Dynamics (GD) closed at $275.03 in the latest trading session, marking a -0.37% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.01%. Elsewhere, the Dow saw a downswing of 0.22%, while the tech-heavy Nasdaq appreciated by 0.32%.Coming into today, shares of the defense contractor had gained 2.01% in the past month. In that same time, the Aerospace sector gained 9.52%, while the S&P 500 gained 5.2%.Investors will be eagerly watching for the performance of General Dynamics in its upcoming earnings disclosure. On that day, General Dynamics is projected to report earnings of $3.47 per share, which would represent year-over-year growth of 6.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.05 billion, up 0.59% from the year-ago period.For the full year, the Zacks Consensus Estimates are projecting earnings of $14.92 per share and revenue of $50.47 billion, which would represent changes of +9.46% and +5.76%, respectively, from the prior year.It is also important to note the recent changes to analyst estimates for General Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. At present, General Dynamics boasts a Zacks Rank of #3 (Hold).In terms of valuation, General Dynamics is currently trading at a Forward P/E ratio of 18.51. This expresses a discount compared to the average Forward P/E of 23.06 of its industry.It is also worth noting that GD currently has a PEG ratio of 1.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.94.The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 50, placing it within the top 21% of over 250 industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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