General Dynamics Corporation (NYSE: GD) is a global company in the aerospace and defense industries. Its products include top-tier Gulfstream business jets, nuclear-powered submarines, communications technology, and combat vehicles. The company’s headquarters are in Reston, Virginia.
General Dynamics Stock Performance
The stock has had a great run, rising 19.33% in the past six months and nearly 10% in the past three months. Its share performance often closely mirrors its financial performance. Consequently, it is essential to understand key financial indicators to know why the stock is rising. It is currently worth $249.69 per share after rising by 1.10% at the close of trading on December 1, 2023.
Earnings Report
In its upcoming earnings report, analysts predict an EPS of $4.21, a 17.6% rise from last year’s quarter. Additionally, market analysts project a Q4 2023 revenue of $12.48 billion, representing a 15.02% rise from last year.
In the most recent Q3 2023 earnings report on October 25, 2023, General Dynamics reported an EPS of $3.04 and a revenue of 10.57B. The company beat estimates by 3.25% and 4.76% in both EPS and revenue, respectively.
In the report, the company reported that its order backlog remained strong across all segments. General Dynamics reported a consolidated book-to-bill ratio of orders divided by revenue of 1.4:1 in Q3. The company states that the Marine Systems and Aerospace segments have performed well. Its entire order backlog stands at $95.6 billion, the highest it has ever been. All its backlog components come to around $132.9 billion as of Q3 2023.
General Dynamics Stock Forecast
Stock analysts have given GD stock a moderate buy rating. Their highest price forecast is $285, while the lowest is $242. The average price forecast for GD is 262.18, which is a 5% upside based on the last closing price of $249.69.
Should You Buy GD Stock?
With a market cap of $68.14 billion, General Dynamics is famous for its strong market presence. It also has a solid dividend increase record, having raised annual dividend payouts for the past 29 consecutive years, with an average dividend yield of 2.1%.
When buying stock, it is always important to check the underlying fundamentals; GD stock is one such company. Analysts expect profit at General Dynamics to grow by double digital in the next few years. Additionally, it is set for higher cash flow, thanks to its enormous backlog of over $100 billion as of the last reported quarter. A higher cash flow often comes with a higher valuation. Consequently, if you are looking for a stable, reliable stock that all factors point to growth in the medium term, General Dynamic (GD) stock is a great option.
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