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Why the Market Dipped But General Dynamics (GD) Gained Today

In the latest market close, General Dynamics (GD) reached $287.87, with a +0.13% movement compared to the previous day. This change outpaced the S&P 500's 1.46% loss on the day. Elsewhere, the Dow saw a downswing of 1.24%, while the tech-heavy Nasdaq depreciated by 1.63%.

Prior to today's trading, shares of the defense contractor had gained 4.39% over the past month. This has outpaced the Aerospace sector's loss of 4.4% and the S&P 500's gain of 1.6% in that time.

The investment community will be closely monitoring the performance of General Dynamics in its forthcoming earnings report. The company is scheduled to release its earnings on April 24, 2024. It is anticipated that the company will report an EPS of $2.98, marking a 12.88% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $10.43 billion, showing a 5.58% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.57 per share and revenue of $46.5 billion. These totals would mark changes of +21.21% and +10%, respectively, from last year.

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Additionally, investors should keep an eye on any recent revisions to analyst forecasts for General Dynamics. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.15% downward. General Dynamics is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, General Dynamics is presently being traded at a Forward P/E ratio of 19.73. This valuation marks a premium compared to its industry's average Forward P/E of 18.56.

It's also important to note that GD currently trades at a PEG ratio of 1.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Aerospace - Defense industry had an average PEG ratio of 1.84 as trading concluded yesterday.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 101, putting it in the top 41% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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