Why General Dynamics (GD) Outpaced the Stock Market Today

In the latest trading session, General Dynamics (GD) closed at $337.19, marking a +1.82% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.07%. At the same time, the Dow added 1.12%, and the tech-heavy Nasdaq gained 1.37%. Shares of the defense contractor have appreciated by 2.18% over the course of the past month, outperforming the Aerospace sector's gain of 0.79%, and the S&P 500's gain of 1.08%.Market participants will be closely following the financial results of General Dynamics in its upcoming release. The company plans to announce its earnings on October 24, 2025. It is anticipated that the company will report an EPS of $3.73, marking a 11.34% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.61 billion, up 8.08% from the year-ago period. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.24 per share and revenue of $51.21 billion. These totals would mark changes of +11.81% and +7.32%, respectively, from last year. Investors should also pay attention to any latest changes in 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 business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.27% increase. As of now, General Dynamics holds a Zacks Rank of #3 (Hold). In terms of valuation, General Dynamics is presently being traded at a Forward P/E ratio of 21.73. This valuation marks a discount compared to its industry average Forward P/E of 25.01. It is also worth noting that GD currently has a PEG ratio of 2.04. 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 2.21 at yesterday's closing price. The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 36% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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