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

Company Performance - General Dynamics (GD) closed at $263.41, reflecting a -0.86% change from the previous day, underperforming the S&P 500 which gained 0.08% [1] - Over the past month, GD shares increased by 7.92%, outperforming the Aerospace sector's gain of 3.49% and the S&P 500's loss of 7.33% [1] Upcoming Earnings - General Dynamics is expected to report an EPS of$ 3.43, indicating a 19.1% increase from the same quarter last year [2] - Revenue is forecasted at $11.75 billion, representing a 9.54% rise from the prior-year quarter [2] Full Year Projections - For the full year, earnings are projected at$ 14.94 per share and revenue at $50.36 billion, reflecting increases of +9.61% and +5.54% respectively from the previous year [3] Analyst Estimates - Recent adjustments to analyst estimates for General Dynamics are important as they reflect short-term business trends [4] - Positive estimate revisions are seen as a sign of optimism regarding the company's business outlook [4] Stock Performance and Valuation - The Zacks Rank system indicates General Dynamics is currently ranked 4 (Sell), with a recent 0.01% decline in the Zacks Consensus EPS estimate [6] - GD is trading with a Forward P/E ratio of 17.79, which is lower than the industry average of 21.7 [7] - The company has a PEG ratio of 1.82, compared to the Aerospace - Defense industry average of 1.83 [8] Industry Context - The Aerospace - Defense industry ranks in the top 33% of all industries, with a Zacks Industry Rank of 82 [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]