General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment produces and sells business jets; and offers aircraft maintenance and repair, management, aircraft-on-ground support and completion, charter, staffing, and fixed-base operator services. The Marine Systems segment designs and builds nuclear-powered submarines, surface combatants, and auxiliary ships for the United States Navy and Jones Act ships for commercial customers, as well as builds crude oil and product tankers, and container and cargo ships; provides maintenance, modernization, and lifecycle support services for navy ships; offers and program management, planning, engineering, and design support services for submarine construction programs. The Combat Systems segment manufactures land combat solutions, such as wheeled and tracked combat vehicles, Stryker wheeled combat vehicles, piranha vehicles, weapons systems, munitions, mobile bridge systems with payloads, tactical vehicles, main battle tanks, armored vehicles, and armaments; and offers modernization programs, engineering, support, and sustainment services. The Technologies segment provides information technology solutions and mission support services; mobile communication, computers, and command-and-control mission systems; intelligence, surveillance, and reconnaissance solutions to military, intelligence, and federal civilian customers; cloud computing, artificial intelligence; machine learning; big data analytics; development, security, and operations; and unmanned undersea vehicle manufacturing and assembly services. The company was founded in 1899 and is headquartered in Reston, Virginia.

General Dynamics looks like a high-quality defense business with sustainable profitability and moderate leverage, but the market is already pricing it at a not-cheap valuation. A P/E of 21.4 is below the industry median, which supports the valuation; however, a P/S of 1.75 and especially a P/B of 3.54 are noticeably above industry benchmarks and limit upside from re-rating. A P/FCF of 14.87 is below the median, indicating solid free cash flow generation and partly offsetting the richness on revenue and balance sheet metrics. Profitability is strong: ROE of 17.43%, ROA of 7.67%, and ROI of 13.86% are above the industry, while the net profit margin of 8.18% is also slightly better than the median. At the same time, the gross margin of 15.38% is significantly below the industry median, indicating structurally lower gross margin, although the operating margin of around 10.3% remains at an acceptable level and appears stable. Earnings and revenue trends over recent periods are generally positive: revenue, net income, operating income, EBITDA, and gross profit are growing or remaining stable, which supports the fundamental case. The balance sheet looks conservative: debt/equity of 0.23 is well below the industry, debt is declining, and cash on hand is increasing, reducing financial risk. Liquidity is not ideal, since the quick ratio of 0.96 is below 1 and the current ratio of 1.44 is slightly below the industry median, but for a capital-intensive defense business this does not look critical. The dividend yield of 0.48% remains low and is not a strong driver of revaluation, although it is stable. Overall, the company combines solid profitability, a strong balance sheet, and steady cash flow with a fairly high market valuation on certain multiples. Therefore, the fundamentals support the current outlook rather than justify an aggressive target increase. For an investor, this is a story about stability and quality rather than deep undervaluation.

General Dynamics Corporation

Сильный индекс, без изменений. Быки в растерянности.

Strong index, flat. The bulls are confused.

Сильный индекс, без изменений. Рынок на стороне быков.

Strong index, flat. The market is on the bulls' side.

Средний индекс, без изменений. Отток средств из лонгов на высоком уровне.

Medium index, flat. Outflow of funds from longs at a high level.

GD demonstrates strong profitability and low debt with stable revenue growth, but it looks expensive on a P/S and P/B basis, so the upside from revaluation appears limited.

The S&P 500 Index ($SPX) (SPY) closed down by -1.09% on Friday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.34%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.50%. December E-mini S&P futures (ESZ26) fell -1.14%, and December E-mini Nasdaq futures (NQZ26) fell -2.51%.
Stock indexes sold off sharply on Friday, with the S&P 500 falling to a 2-week low and the Nasdaq 100 dropping to a 1-month low. Selling in chipmakers and AI-infrastructure stocks led the market lower on Friday, driven by concerns about whether companies will see returns on their huge investments in the AI infrastructure buildout. Also, CoreWeave sank more than -11% to weigh on cloud infrastructure stocks as concerns about the company’s credit risk linger.
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Stock losses accelerated Friday afternoon as crude oil prices soared more than 3% to a 1-month high, raising inflation expectations and fueling fears the Fed will keep raising interest rates to contain inflation.
Higher bond yields undercut stocks after Fed Chair Warsh made no remarks on monetary policy or his outlook for the US economy late Thursday evening at the IMF annual meeting in Bangkok. The 10-year T-note yield rose +1 bp to 5.09%.
Friday’s US economic news was mixed for stocks. The Sep import price index ex-petroleum rose +0.8% m/m, stronger than expectations of +0.6% m/m, the largest increase in 5 months and a sign of price pressures. However, Sep manufacturing production rose +0.3% m/m, right on expectations.
Stocks have support from the prospect of solid quarterly earnings results that began this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of Friday, 40 of the S&P 500 companies have reported results, with 78% beating estimates.
Nov WTI crude oil prices (CLX26) surged more than +3% on Friday to a 1-month high. Crude prices rallied on Friday amid a weaker dollar and concerns that escalating Middle East hostilities could disrupt regional energy supplies. Prices race to their highs Friday afternoon after US lawmakers introduced a bill to block President Trump’s deal with Russia to release several hundred million barrels of diesel fuel.
Markets are discounting a 17% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled higher on Friday. The Euro Stoxx 50 closed up +0.58%. China's Shanghai Composite closed up +0.24%. Japan's Nikkei-225 Stock Average closed up +1.39%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down -2.5 ticks on Friday. The 10-year T-note yield rose +2.7 bp to 5.085%. Dec T-notes were under pressure Friday after Fed Chair Warsh's lack of guidance at the annual IMF meeting in Bangkok weighed on T-notes. Also, Friday’s +3% surge in WTI crude oil to a 1-month high raised inflation expectations and weighed on T-notes. Friday’s stock plunge sparked safe-haven buying of government debt and limited T-note losses.
European government bond yields were mixed on Friday. The 10-year German bund yield rose +1.3 bp to 3.426%. The 10-year UK gilt yield fell -0.2 bp to 5.373%.
ECB Governing Council member and Bundesbank President Joachim Nagel said. "The ECB has raised interest rates twice, and if the situation remains as it is, we don't rule out the possibility that we may have to take further action."
Markets are discounting a 10% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks continued their week-long slide on Friday, weighing on the broader market. Seagate Technology Holdings Plc (STX) closed down more than -7%, and Western Digital (WDC), SanDisk (SNDK), and ARM Holdings Plc (ARM) closed down more than -6%. Also, Advanced Micro Devices (AMD), Micron Technology (MU), Intel (INTC), and Marvell Technology (MRVL) closed down more than -5%, and Lam Research (LRCX), KLA Corp (KLAC), Applied Materials (AMAT), and Broadcom (AVGO) closed down more than -4%. In addition,
CoreWeave (CRWV) closed down more than -11% to weigh on cloud infrastructure stocks as debt concerns linger after swaps priced in more than a 50% chance the company will default on its debt within five years. Also, Nebius Group NV (NBIS) closed down more than -12% to lead losers in the Nasdaq 100, and Applied Digital (APLD) closed down more than -11%. In addition, Lumentum Holdings (LITE) closed down more than -5%, and Oracle (ORCL) and Arista Networks (ANET) closed down more than -4%.
The Magnificent Seven stocks, excluding Apple, fell on Friday and weighed on the overall market. Meta Platforms (META) closed down more than -3%, and Alphabet (GOOGL) closed down more than -2% to lead losers in the Dow Jones Industrials. Also, Tesla (TSLA) closed down more than -2%, and Amazon.com (AMZN), Microsoft (MSFT), and Nvidia (NVDA) closed down more than -1%. Apple (AAPL) bucked the trend and closed up +0.43%.
Cybersecurity stocks retreated on Friday. Okta (OKTA) closed down more than -10%, and SentinelOne (S), Fortinet (FTNT), Crowdstrike Holdings (CRWD), and Palo Alto Networks (PANW) closed down more than -7%. Also, Cloudflare (NET) closed down more than -6%, Zscaler (ZS) closed down more than -5%, and Gen Digital (GEN) closed down more than -2%.
Energy producers and service providers rallied on Friday after WTI crude oil rose more than +3% to a 1-month high. APA Corp (APA) closed up more than +4%, and Diamondback Energy (FANG) closed up more than +4% to lead gainers in the Nasdaq 100. Also, ConocoPhillips (COP) and Devon Energy (DVN) closed up more than +3%, and Chevron (CVX) closed up more than +2% to lead gainers in the Dow Jones industrials. In addition, Baker Hughes (BKR), ExxonMobil Holdings (XOM), Occidental Petroleum (OXY), and SLB Ltd (SLB) closed up more than +2%, and Halliburton (HAL) and Phillips 66 (PSX) closed up more than +1%.
Defense contractors rose on Friday as the companies are set to benefit from increased defense spending. Northrop Grumman (NOC) closed up more than +4%, and Lockheed Martin (LMT), RTX Corp (RTX), and L3Harris Technologies (LHX) closed up more than +3%. Also, General Dynamics (GD) closed up more than +2%, and Huntington Ingalls Industries (HII) closed up more than +1%.
Defensive food producers moved higher on Friday amid the slump in the broader market. Kraft Heinz Co (KHC), McCormick & Co (MKC), J M Smucker (SJM), Hershey Co (HSY), Hormel Foods (HRL), and Mondelez International (MDLZ) closed up more than +1%.
Omeros (OMER) closed down more than -14% after the European Medicines Agency issued a negative opinion on the company’s application for its narsoplimab therapy.
Earnings Reports (10/19/2026)
AGNC Investment Corp (AGNC), BOK Financial Corp (BOKF), Cleveland-Cliffs Inc (CLF), Crown Holdings Inc (CCK), Fifth Third Bancorp (FITB), FNB Corp/PA (FNB), RLI Corp (RLI), Steel Dynamics Inc (STLD), W R Berkley Corp (WRB), Western Alliance Bancorp (WAL), Wintrust Financial Corp (WTFC), Zions Bancorp NA (ZION).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stock Indexes Finish Sharply Lower as Tech Stocks Plunge

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Defense Industrials Active ETF (Symbol: IDEF) where we have detected an approximate $480.7 million dollar outflow -- that's a 11.1% decrease week over week (from 135,880,000 to 120,740,000). Among the largest underlying components of IDEF, in trading today General Dynamics Corp (Symbol: GD) is up about 0.1%, Northrop Grumman Corp (Symbol: NOC) is up about 0.6%, and Elbit Systems Ltd. (Symbol: ESLT) is lower by about 2.8%. For a complete list of holdings, visit the IDEF Holdings page » The chart below shows the one year price performance of IDEF, versus its 200 day moving average:
Looking at the chart above, IDEF's low point in its 52 week range is $28.5403 per share, with $36.88 as the 52 week high point — that compares with a last trade of $31.62. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further IDEF Research:

Notable ETF Outflow Detected - IDEF, GD, NOC, ESLT

In the latest trading session, General Dynamics (GD) closed at $336.29, marking a -2.05% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.03% for the day. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.01%.
Heading into today, shares of the defense contractor had lost 10.13% over the past month, lagging the Aerospace sector's loss of 8.91% and the S&P 500's gain of 0.53%.
The investment community will be closely monitoring the performance of General Dynamics in its forthcoming earnings report. On that day, General Dynamics is projected to report earnings of $4.14 per share, which would represent year-over-year growth of 6.7%. At the same time, our most recent consensus estimate is projecting a revenue of $13.66 billion, reflecting a 5.84% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $16.95 per share and a revenue of $55.8 billion, signifying shifts of +9.64% and +6.19%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for General Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. General Dynamics presently features a Zacks Rank of #3 (Hold).
In terms of valuation, General Dynamics is presently being traded at a Forward P/E ratio of 20.25. This denotes a discount relative to the industry average Forward P/E of 23.27.
Also, we should mention that GD has a PEG ratio of 1.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense industry had an average PEG ratio of 1.67 as trading concluded yesterday.
The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Here's Why General Dynamics (GD) Fell More Than Broader Market

General Dynamics GD is benefiting from continued U.S. Army demand for modern armored vehicles as the military strengthens its ground combat capabilities. Through its Land Systems business, the company recently received a $49.3 million contract modification for the procurement of Double V-Hull A1 Stryker vehicles, bringing the cumulative value of the contract to approximately $278.9 million.
The latest award highlights continued demand for the Stryker platform, which provides the Army with a combination of mobility, protection and firepower. The Double V-Hull design is intended to improve protection against mine and improvised explosive device threats, supporting the Army’s requirements for survivable vehicles in challenging operating environments.
The contract is expected to run through December 2028, providing General Dynamics with additional revenue visibility. Continued procurement of Stryker vehicles also supports the company’s Land Systems business as the Army invests in modernizing and expanding its fleet of combat vehicles.
General Dynamics’ established relationship with the U.S. Army and extensive experience in armored vehicle production position it well to benefit from sustained demand for ground combat systems. The company can also benefit from follow-on orders, upgrades and lifecycle support as the Stryker fleet continues to operate and evolve.
With ongoing investment in protected mobility and ground combat capabilities, General Dynamics is well-positioned to capture additional opportunities in the U.S. Army vehicle market. Continued Stryker procurement should provide a steady source of demand for its Land Systems business in the coming years.
Defense Stocks to Keep on the Radar
Along with General Dynamics, other defense companies benefiting from demand for armored and ground combat vehicles are discussed below:
Lockheed Martin LMT: Lockheed Martin provides advanced ground combat and battlefield systems, including precision weapons, sensors and mission systems that support the U.S. Army’s modernization efforts.
RTX Corporation RTX: RTX develops advanced weapons, sensors and vehicle protection technologies for ground forces. Its solutions support survivability, precision strike and situational awareness across modern battlefield platforms.
The Zacks Rundown for GD
Shares of GD have risen 6.2% in the past year against the industry’s 13.5% decline.
The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.61X compared with its industry’s average of 2.27X.
The Zacks Consensus Estimate for GD’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
GD stock currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can Stryker Vehicle Demand Support General Dynamics' Growth?

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Northrop Grumman?
The final step today is to look at a stock that meets our ESP qualifications. Northrop Grumman (NOC) earns a #3 (Hold) 22 days from its next quarterly earnings release on January 30, 2025, and its Most Accurate Estimate comes in at $6.31 a share.
Northrop Grumman's Earnings ESP sits at +1.16%, which, as explained above, is calculated by taking the percentage difference between the $6.31 Most Accurate Estimate and the Zacks Consensus Estimate of $6.24. NOC is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
NOC is just one of a large group of Aerospace stocks with a positive ESP figure. TransDigm Group (TDG) is another qualifying stock you may want to consider.
TransDigm Group, which is readying to report earnings on February 13, 2025, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $7.69 a share, and TDG is 36 days out from its next earnings report.
TransDigm Group's Earnings ESP figure currently stands at +3.38% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $7.43.
NOC and TDG's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
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Why Investors Need to Take Advantage of These 2 Aerospace Stocks Now

Investors with an interest in Aerospace - Defense stocks have likely encountered both General Dynamics (GD) and GE Aerospace (GE). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, General Dynamics is sporting a Zacks Rank of #2 (Buy), while GE Aerospace has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GD has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GD currently has a forward P/E ratio of 20.88, while GE has a forward P/E of 40.33. We also note that GD has a PEG ratio of 2.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GE currently has a PEG ratio of 2.33.
Another notable valuation metric for GD is its P/B ratio of 3.57. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GE has a P/B of 18.52.
These metrics, and several others, help GD earn a Value grade of B, while GE has been given a Value grade of D.
GD sticks out from GE in both our Zacks Rank and Style Scores models, so value investors will likely feel that GD is the better option right now.
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GD vs. GE: Which Stock Is the Better Value Option?

Lockheed Martin LMT is strengthening its position in strategic missile systems as the U.S. Navy continues to modernize its ballistic missile capabilities. Through its Space business, the company is supporting the life extension of the Trident II (D5) missile, a key component of the U.S. strategic deterrence system.
Lockheed Martin recently received a $76.6 million contract modification for advanced design and development work under the Trident II D5 Life Extension 2 (D5LE2) program. The award supports continued development of upgrades designed to extend the missile system’s service life and maintain its capabilities over the long term. Work under the modification is expected to continue through September 2030.
The program highlights the long-term nature of demand for strategic missile modernization as the U.S. Navy seeks to maintain a reliable and effective sea-based deterrent. Continued investment in ballistic missile life-extension programs should support demand for Lockheed Martin’s engineering, development and production capabilities.
Lockheed Martin’s established role in the Trident II program also provides it with significant expertise in strategic missile technologies. This positions the company to benefit from ongoing modernization efforts as the U.S. government focuses on maintaining and upgrading critical strategic systems.
With sustained investment in ballistic missile modernization and its established position in the Trident II program, Lockheed Martin is well-positioned to benefit from long-term demand for advanced strategic missile capabilities. The company’s involvement in major life-extension efforts should also provide greater visibility into future opportunities in this market.
Defense Stocks to Keep on the Radar
Other defense companies benefiting from demand for advanced missile and strategic defense systems are discussed below:
General Dynamics GD: General Dynamics provides strategic weapon systems, submarine technologies and fire-control capabilities for the U.S. Navy. Its role in submarine modernization positions it to benefit from continued investment in strategic deterrence.
RTX Corporation RTX: RTX develops advanced missile, propulsion and guidance technologies for U.S. and allied defense programs. Continued investment in missile modernization should support demand across its defense portfolio.
The Zacks Rundown for LMT
Shares of LMT have risen 11.1% in the past year against the industry’s 13.8% decline.
The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 16.51X compared with its industry’s average of 29.17X.
The Zacks Consensus Estimate for LMT’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
LMT stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can Rising Ballistic Missile Demand Support Lockheed Martin's Growth?

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores?
The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth Score
Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum Score
Momentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: General Dynamics (GD)
Headquartered in Falls Church, VA, General Dynamics Corporation engages in mission-critical information systems and technologies; land and expeditionary combat vehicles, armaments and munitions; shipbuilding and marine systems; and business aviation. The company was incorporated in February 1952.
GD is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 20.83; value investors should take notice.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.29 to $16.95 per share. GD boasts an average earnings surprise of +6.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, GD should be on investors' short list.
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Here's Why General Dynamics (GD) is a Strong Value Stock

The U.S. Department of War recently signed a landmark framework agreement with Lockheed Martin LMT to rapidly scale the production and delivery of the AIM-260 Joint Advanced Tactical Missile (“JATM”). Executed as part of a broader government strategy to strengthen national missile supplies, this agreement establishes a multi-year procurement pathway that sends clear, long-term demand signals across the entire military industrial base, especially for missile manufacturers.
Consequently, defense stocks — ranging from prime system integrators to sub-tier component suppliers — stand to benefit directly from this framework via expanded production lines, high-margin Foreign Military Sales (“FMS”) and institutional investor interest.
For investors seeking lower-risk exposure to this multi-year growth cycle, defense-focused exchange-traded funds (ETFs) offer a balanced path forward. These funds allow investors to capture steady revenue gains across the broader missile supply chain without taking on single-stock concentration risk.
With production ramp-ups now formally in view, understanding the strategic mechanics of how important the JATM program is and why this framework serves as a massive catalyst for the broader U.S. missile supply chain is crucial for making an informed decision.
The Strategic Role of JATM in U.S. Air Dominance
The AIM-260 JATM is the centerpiece of next-generation American air-to-air combat strategy. Developed to replace the legacy AIM-120 AMRAAM, the JATM offers significantly extended range, advanced signal processing, and superior lethality against peer and near-peer air threats.
Under the Trump administration's "Arsenal of Freedom" framework, accelerating JATM production is not simply a single-weapons program upgrade — it is the cornerstone of rebuilding deep-magazine war reserves. The Pentagon’s multi-year purchasing commitments provide LMT with the financial certainty to expand facilities, scale its workforce and strengthen the missile’s supply chain.
The Framework’s Role in Boosting U.S. Missile Supply Chain
While Lockheed Martin serves as the lead prime contractor for JATM, the benefits of this framework could extend across the broader defense industry, creating revenue opportunities for other defense stocks like those mentioned below.
For instance, Northrop Grumman NOC is a key provider of advanced solid rocket motors (SRMs), warheads, and sensor technologies required for long-range tactical missiles. It has delivered more than 1 million tactical SRMs. NOC’s motors power major interceptor and tactical missile families, including the Standard Missile (SM), Precision Strike Missile and PAC-3 MSE.
Then there is RTX Corporation RTX, the legacy manufacturer of the Advanced Medium-Range Air-to-Air Missiles (“AMRAAM”), as well as SMs and Tomahawk Cruise missiles. It also supplies secondary radar and guidance components across joint missile programs. RTX is currently working with the U.S. government and NATO allies to scale production of AMRAAM to at least 1,900 units per year.
Other defense contractors worth mentioning as major beneficiaries of the framework are Boeing BA and General Dynamics GD. Boeing builds and maintains navigation systems for the U.S. Navy's Trident submarine missiles and supports the guidance systems for land-based Minuteman III missiles. General Dynamics provides critical missile energetics and structural components.
This interconnected ecosystem means that as the government accelerates missile production, the benefits can extend across various tiers of the defense industry.
Geopolitical Tensions Create a Multi-Year Defense Catalyst
Recent global security crises have highlighted a stark reality: modern high-intensity warfare depletes precision munitions at an unprecedented rate. Notably, ongoing conflict between Russia and Ukraine, heightened direct friction between the United States and Iran, and continuous maritime disruption from Houthi attacks in the Red Sea have severely strained global weapon stockpiles.
These persistent threats are forcing nations globally to transition from "just-in-time" procurement to "just-in-case" stockpiling, particularly for missiles. With America being the largest weapons exporter, this structural shift is creating a prolonged bullish cycle for defense manufacturing, particularly those based in the United States, making defense equities a compelling hedge against geopolitical risk.
Top Defense ETFs for You
Considering the discussion above, investors seeking diversified exposure to the JATM ramp-up and broader missile-stockpiling spending can consider the following ETFs:
iShares U.S. Aerospace & Defense ETF ITA
This fund, with net assets worth $12.54 billion, offers exposure to 48 U.S. aerospace and defense companies, including manufacturers of commercial and military aircraft. GE Aerospace holds the first spot in this fund, with 21.51% weightage, while RTX holds the second spot with 17.14% weightage. BA, GD and LMT hold the third, fourth and fifth spots in this ETF, with 9.18%, 4.94% and 4.85% weightage, respectively.
ITA has gained 5.2% over the past year and charges 37 basis points (bps) in fees. It traded at a good volume of 1.05 million shares in the last trading session and holds a Zacks ETF Rank #2 (Buy).
Invesco Aerospace & Defense ETF PPA
This fund, with a market value of $7.63 billion, offers exposure to 62 companies involved in the development, manufacturing, operations and support of U.S. defense, homeland security and aerospace operations. RTX holds the first spot in this fund, with 8.14% weightage, while BA holds the second spot with 6.82% weightage. LMT, GD and NOC hold the fourth, fifth and sixth spots, with 6.73%, 5.02% and 5.01% weightage, respectively.
PPA has rallied 5.7% over the past year and charges 58 bps in fees. It traded at a volume of 0.22 million shares in the last trading session and holds a Zacks ETF Rank #2.
State Street SPDR S&P Aerospace & Defense ETF XAR
This fund, with assets under management (AUM) worth $6.13 billion, offers exposure to 47 aerospace and defense companies. RTX holds the first spot in this fund, with 3.31% weightage, while GD holds the third spot with 3.16% weightage. LMT holds the fourth spot with 3.11% weightage, while NOC holds the ninth position with 2.93% weightage.
XAR has risen 6.3% over the past year and charges 35 bps in fees. It traded at a volume of 0.16 million shares in the last trading session and holds a Zacks ETF Rank #2.
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Defense ETFs Stand to Gain as Trump Administration Signs JATM Deal

L3Harris Technologies, Inc. LHX is expanding its presence across international markets, creating opportunities to serve a broader customer base beyond the United States. In fiscal 2025, international revenues reached $4.8 billion, accounting for 22% of total revenues. The company serves customers across more than 100 countries, providing exposure to a wide range of international markets.
LHX’s international operations are supported by marketing organizations and regional sales offices across Europe, the Middle East and Africa, Asia-Pacific and Canada. This geographic presence enables the company to maintain closer relationships with customers and pursue opportunities across different regions. No single foreign country accounted for more than 5% of revenues in fiscal 2025, providing geographic diversification.
International deliveries also contributed to L3Harris’ fiscal 2025 revenue growth. Consolidated revenues increased 3% to $21.865 billion, with higher volumes, including new program ramps, and increased international deliveries supporting the performance. Continued international activity could therefore provide an additional avenue for growth as the company expands its customer reach.
The company’s broad portfolio across defense and technology markets further supports its ability to address international requirements. L3Harris competes internationally against large defense companies and focuses on opportunities that fit its technological capabilities and objectives. Its established international marketing infrastructure and presence across multiple regions could support continued expansion in global markets.
Companies Expanding Their Global Defense Presence
Growing international defense demand is encouraging aerospace and defense companies to expand their global customer base and regional presence. General Dynamics Corporation GD and RTX Corporation RTX are also generating significant revenue from customers outside the United States.
General Dynamics generated $9.2 billion from non-U.S. government and commercial customers in 2025, representing 17% of consolidated revenues, while maintaining business relationships across global markets.
RTX generated $41.3 billion in international sales in 2025, representing 47% of total net sales, with customers across Europe, Asia-Pacific, the Middle East and other regions.
Earnings Estimates for LHX
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 9.79% and 14.44%, respectively.
LHX Stock Is Trading at a Discount
LHX is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 1.89X compared with the industry average of 2.26X.
LHX Stock Price Performance
Over the past year, LHX shares have fallen 11.8% compared with the industry’s 13.7% decline.
LHX’s Zacks Rank
LHX stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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