Unusual Social Activity Around General Dynamics (GD) Today - TheStreet

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 more that 20x the normal benchmarked social activity for this time of the day compared to its average of 2.58 mentions/day.
  • GD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $158.8 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 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 1.9%. GD has a PE ratio of 17. Currently there are 9 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 1.3 million shares per day over the past 30 days. General Dynamics has a market cap of $47.8 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.70 and a short float of 1.4% with 3.62 days to cover. Shares are up 7.8% 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 revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • GD's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 5.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • GENERAL DYNAMICS CORP has improved earnings per share by 20.7% 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 $7.83 versus $7.03 in the prior year. This year, the market expects an improvement in earnings ($8.84 versus $7.83).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 39.0% when compared to the same quarter one year prior, rising from $541.00 million to $752.00 million.

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