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General Dynamics Corporation (GD), headquartered in Reston, Virginia, operates as a global aerospace and defense company. Valued at $82.7 billion by market cap, the company offers a broad portfolio of products and services in business aviation, combat vehicles, weapons systems, munitions, shipbuilding design and construction, information systems, and technologies.
Companies worth $10 billion or more are generally described as “large-cap stocks.” GD effortlessly fits that bill, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the aerospace & defense industry.
With a diverse portfolio in business aviation, ship construction and repair, combat vehicles, and technology services, GD continues to solidify its market position. GD's commitment to ethical practices and human capital management remains a cornerstone of its success, ensuring a skilled and dedicated workforce.
GD touched its 52-week high of $303.10 in the last trading session. Over the past three months, GD has stock gained marginally, outperforming the Nasdaq Composite’s ($NASX) 1.5% dip during the same time frame.
In the longer term, shares of GD rose 16.1% on a YTD basis and climbed 38.4% over the past 52 weeks, outperforming NASX’s YTD gains of 12.5% and solid 22.7% returns over the last year.
To confirm the bullish trend, GD has traded above its 200-day moving averages since September 2023, and has traded above its 50-day moving average since late August.
General Dynamics' successful partnership with Lockheed Martin Corporation (LMT) to develop advanced military missile motors has boosted its stock performance. Besides, the company has secured various large contracts, including one worth $496.1 million to support the Ground Management and Integration program for the Space Development Agency. GD has also become a leader in cybersecurity solutions, with NSA-certified encrypted communications systems.
On Jul. 24, GD shares closed down more than 3% after reporting its Q2 earnings results. Its EPS of $3.26 fell short of Wall Street expectations of $3.30. The company’s revenue was $12 billion, surpassing Wall Street forecasts of $11.5 billion.
In the competitive arena of aerospace & defense stocks, Lockheed Martin has taken the lead over GD, showing resilience with a 27% uptick on a YTD basis, while LMT shares lagged behind GD stock despite LMT gaining a solid 36.1% over the past 52 weeks.
Wall Street analysts are highly bullish on GD’s prospects. The stock has a consensus “Strong Buy” rating from the 20 analysts covering it, and the mean price target of $326.89 suggests a potential upside of 8.4% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
