Why are General Dynamics stocks dropping after $56M Deal?

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We will take a look at EPS for General Dynamics Corp (GD) which is earnings per share (EPS) trailing twelwe months. This is monetary value of earnings per outstanding share of common stock for a company, in this case GD share

In the United States, the Financial Accounting Standards Board requires EPS information for the four major categories of the income statement: continuing operations, discontinued operations,net income and extraordinary items.

Here is the latest data for GD stock as of April 15,2020

  • Price/Earnings trailing 12 months———–11.43
  • Earnings Per Share trailing 12 months—–11.98
  • Most Recent Earnings————————3.51 on 01/29/20
  • Next Earnings Date————————–04/29/20

New Average Analyst Ratings for General Dynamics Corp (GD)

A price target is the envisioned future price point of an asset (usually stock) as explained by an investment analyst or a Wall street advisor. The price target is based on many assumptions such as tech levels, cash flow, recent news and supply and demand.  Price targets  change often when the market is volatileand during crisis, that is why you need to stay in the loop and any new information. 

Current Rating for NYSE:GD according to analysts
Moderate Buy
Based on 11 analysts offering recommendations.
8 Strong Buy
2 Hold
1 Strong Sell
 

How has NYSE:GD stock performed recently?

A stock’s performance is more than just a set of random numbers. We need to place those numbers in context to understand it properly. On the surface, it feels awesome to see that a stock you invested in has returned 30% Year to date when viewing the starting price versus the ending price, but you need to look a little deeper. Was the stock abnormally low on the first trading day? If so, it could throw the numbers off.

Here are the latest numbers for General Dynamics Corp (NYSE:GD)

Previous Close136.95
Volume1,446,500
Avg Vol2,398,765
Stochastic %K88.36%
Weighted Alpha-29.20
5-Day Change+4.81 (+3.60%)
52-Week Range100.55 – 193.76
 
Looking at the numbers we are proceeding to Analysts target prices for GD per share

Analyst Target Prices

HIGH TARGET 230.00
 
MEAN TARGET 187.90
 
LOW TARGET 145.00
52 WK HIGH 193.76
 
52 WK LOW 100.55

Latest insight into the General Dynamics Corp (GD) stock fundamentals

The price-to-sales (P/S) ratio is best calculated by taking a company’s market capitalization  and simply divide it by the company’s total revenue over the trailing 12 months. This number shows how much the market values every dollar of the company’s sales. This ratio can be effective in valuing growth stocks that have yet to turn a profit or have suffered a temporary setback.

So, lets take a look at  the latest GD share values after most recent trading day on NYSE:

  • Market Capitalization, $K40,194,504
  • Shares Outstanding, K290,213
  • Annual Sales, $39,350 M
  • Annual Income, $3,484 M
  • 60-Month Beta1.18
  • Price/Sales1.01
  • Price/Cash Flow9.20
  • Price/Book2.92

The Price/Cash flow numbers that you can see in the table above(P/S) are a strong stock valuation indicator or multiple that measures the value of a stock’s price relative to its operating cash flow per share.