General Dynamics (GD) Reaches New Lifetime High Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified General Dynamics ( GD) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified General Dynamics as such a stock due to the following factors:

  • GD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $156.7 million.
  • GD has traded 100,567 shares today.
  • GD is trading at a new lifetime high.

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More details on GD:

General Dynamics Corporation operates as aerospace and defense company worldwide. The stock currently has a dividend yield of 2%. GD has a PE ratio of 18.3. Currently there are 11 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 1.4 million shares per day over the past 30 days. General Dynamics has a market cap of $41.2 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.92 and a short float of 4.6% with 5.42 days to cover. Shares are up 28.4% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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 solid stock price performance, reasonable valuation levels, good cash flow from operations, growth in earnings per share 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.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 48.93% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has significantly increased by 51.12% to $875.00 million when compared to the same quarter last year. In addition, GENERAL DYNAMICS CORP has also vastly surpassed the industry average cash flow growth rate of -19.61%.
  • GENERAL DYNAMICS CORP's earnings per share improvement from the most recent quarter was slightly positive. 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 turned its bottom line around by earning $7.03 versus -$1.03 in the prior year. This year, the market expects an improvement in earnings ($7.52 versus $7.03).
  • GD's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that GD's debt-to-equity ratio is low, the quick ratio, which is currently 0.63, displays a potential problem in covering short-term cash needs.

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