3. General Dynamics ( GD) is a prime contractor of defense-related products and services, addressing segments like aerospace, marine and combat systems, serving both domestic and international customers. The company reported 2010 fourth quarter earnings of $729 million, surpassing $618 million recorded in the same quarter last year. Full-year 2010 earnings stood at $2.6 billion, compared to $2.4 billion for 2009 fiscal. Fourth quarter and full-year 2010 revenue reported was $8.6 billion and $32.5 billion, up 9% and 1.5%, respectively. Operating margins advanced 12.5% for the fourth quarter from 12% in the prior year quarter, largely attributable to 250 bps improvement in the aerospace segment. Total backlog was $59.6 billion and management indicates 2011 earnings per share of $7-$7.1 per share, compared to $6.88 per share in 2010. The stock is trading at 10.9 times its estimated 2011 earnings.