General Dynamics

(

GD

) pushed the Aerospace/Defense industry lower today making it today's featured Aerospace/Defense loser. The industry as a whole closed the day down 2.8%. By the end of trading, General Dynamics fell $2.98 (-4.7%) to $60.64 on average volume. Throughout the day, 2.9 million shares of General Dynamics exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $60.60-$62.75 after having opened the day at $62.72 as compared to the previous trading day's close of $63.62. Other company's within the Aerospace/Defense industry that declined today were:

Ducommun Inc

(

DCO

), down 8.8%,

Embraer S.A

(

ERJ

), down 6.9%,

LMI Aerospace Inc

(

LMIA

), down 6.6%, and

Curtiss-Wright Corporation

(

CW

), down 5.7%.

General Dynamics Corporation provides business aviation, combat vehicles, weapons systems and munitions, military and commercial shipbuilding, and communications and information technology products and services worldwide. General Dynamics has a market cap of $22.46 billion and is part of the

industrial goods

sector. The company has a P/E ratio of 8.8, below the average aerospace/defense industry P/E ratio of 8.9 and below the S&P 500 P/E ratio of 17.7. Shares are down 10.3% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates General Dynamics as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the aerospace/defense industry could consider

iShares DJ US Aerospace & Def Idx

(

ITA

) while those bearish on the aerospace/defense industry could consider

ProShares Short Dow 30

(

DOG

).

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