General Dynamics (GD): Today's Featured Aerospace/Defense Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

General Dynamics ( GD) pushed the Aerospace/Defense industry higher today making it today's featured aerospace/defense winner. The industry as a whole closed the day up 2.5%. By the end of trading, General Dynamics rose $1.78 (2.9%) to $63.91 on average volume. Throughout the day, 2.2 million shares of General Dynamics exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in a price between $62.64-$63.91 after having opened the day at $62.81 as compared to the previous trading day's close of $62.13. Other companies within the Aerospace/Defense industry that increased today were: Aerosonic Corporation ( AIM), up 20.4%, Smith & Wesson Holding Corporation ( SWHC), up 6.6%, TAT Technologies ( TATT), up 5.5%, and Taser International ( TASR), up 5.3%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

General Dynamics Corporation, an aerospace and defense company, 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 $21.94 billion and is part of the industrial goods sector. The company has a P/E ratio of 9.2, below the S&P 500 P/E ratio of 17.7. Shares are down 6.4% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate General Dynamics a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates General Dynamics as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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).

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.
null

If you liked this article you might like

Navy Awards $5.1 Billion Nuclear Submarine Missile Contract to General Dynamics

Here's What Stocks You Want to Own in the Event of a War With North Korea

Tax Reform Is Coming and That Means Trump Stock Rally Is Ready to Kill It Again

'Trump Stock' Rally Is Back on Track

Stock Futures Fall, Gold Rises as North Korea Fires Another Missile Over Japan