Why General Dynamics (GD) is a Top Growth Stock for the Long-Term

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - The Momentum Score leverages price trends and earnings estimate changes to indicate optimal times for investing in high-momentum stocks [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988 [7][8] Stock Selection Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while 3 (Hold) ranked stocks should also have A or B Scores for potential upside [10] - Stocks with lower ranks (4 or 5) should be approached cautiously, even if they have high Style Scores, due to the risk of declining earnings outlooks [11] Company Spotlight: General Dynamics - General Dynamics Corporation, headquartered in Falls Church, VA, operates in mission-critical information systems, combat vehicles, shipbuilding, and business aviation [12] - The company holds a Zacks Rank of 3 (Hold) with a VGM Score of B and a Growth Style Score of B, indicating an expected year-over-year earnings growth of 11.5% for the current fiscal year [12][13] - Recent upward revisions in earnings estimates and a positive earnings surprise average of +1.2% position General Dynamics as a potential growth investment [13]