Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified General Dynamics as such a stock due to the following factors:
- GD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $160.8 million.
- GD is down 5.1% today from today's close.
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More details on GD:
General Dynamics Corporation operates as aerospace and defense company worldwide. The stock currently has a dividend yield of 2.1%. GD has a PE ratio of 16.9. Currently there are 11 analysts that rate General Dynamics a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for General Dynamics has been 1.8 million shares per day over the past 30 days. General Dynamics has a market cap of $41.2 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.99 and a short float of 4.6% with 7.88 days to cover. Shares are up 25.1% year-to-date as of the close of trading on Friday.
rates General Dynamics as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 54.89% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- GENERAL DYNAMICS CORP has improved earnings per share by 5.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GENERAL DYNAMICS CORP turned its bottom line around by earning $7.03 versus -$1.03 in the prior year. This year, the market expects an improvement in earnings ($7.30 versus $7.03).
- GD's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that GD's debt-to-equity ratio is low, the quick ratio, which is currently 0.68, displays a potential problem in covering short-term cash needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Aerospace & Defense industry and the overall market on the basis of return on equity, GENERAL DYNAMICS CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full General Dynamics Ratings Report.