Trade-Ideas LLC identified

General Dynamics

(

GD

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified General Dynamics as such a stock due to the following factors:

  • GD has 10x the normal benchmarked social activity for this time of the day compared to its average of 3.35 mentions/day.
  • GD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $190.9 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on GD:

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four business groups: Aerospace; Combat Systems; Information Systems and Technology; and Marine Systems. The stock currently has a dividend yield of 2.1%. GD has a PE ratio of 15. Currently there are 11 analysts that rate General Dynamics a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for General Dynamics has been 1.6 million shares per day over the past 30 days. General Dynamics has a market cap of $43.9 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.73 and a short float of 1.5% with 2.50 days to cover. Shares are up 5.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant 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, reasonable valuation levels, increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • GENERAL DYNAMICS CORP has improved earnings per share by 9.3% 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 increased its bottom line by earning $9.09 versus $7.83 in the prior year. This year, the market expects an improvement in earnings ($9.51 versus $9.09).
  • The net income growth from the same quarter one year ago has exceeded that of the Aerospace & Defense industry average, but is less than that of the S&P 500. The net income increased by 0.1% when compared to the same quarter one year prior, going from $716.00 million to $717.00 million.
  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.45 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison 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 greatly exceeded that of the S&P 500.

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