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General Dynamics (GD) Gains But Lags Market: What You Should Know

In the latest trading session, General Dynamics (GD) closed at $180.47, marking a +0.67% move from the previous day. This move lagged the S&P 500's daily gain of 0.86%. Meanwhile, the Dow gained 0.79%, and the Nasdaq, a tech-heavy index, added 0.73%.

Heading into today, shares of the defense contractor had lost 2.95% over the past month, lagging the Aerospace sector's loss of 0.8% and the S&P 500's gain of 1.94% in that time.

GD will be looking to display strength as it nears its next earnings release. In that report, analysts expect GD to post earnings of $3.46 per share. This would mark year-over-year growth of 12.7%. Meanwhile, our latest consensus estimate is calling for revenue of $10.60 billion, up 2.12% from the prior-year quarter.

GD's full-year Zacks Consensus Estimates are calling for earnings of $11.92 per share and revenue of $39.19 billion. These results would represent year-over-year changes of +6.24% and +8.27%, respectively.

Investors might also notice recent changes to analyst estimates for GD. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. GD is currently a Zacks Rank #3 (Hold).

Investors should also note GD's current valuation metrics, including its Forward P/E ratio of 15.04. This represents a discount compared to its industry's average Forward P/E of 18.03.

We can also see that GD currently has a PEG ratio of 1.74. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.1 based on yesterday's closing prices.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow GD in the coming trading sessions, be sure to utilize

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