With a market cap of $94.8 billion, General Dynamics Corporation (GD) is a global aerospace and defense company that delivers advanced products and services across air, land, sea, space, and cyber domains. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies, serving military, government, and commercial customers worldwide.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and General Dynamics fits this criterion perfectly. The company is known for producing business jets, building nuclear-powered submarines and naval ships, manufacturing land combat vehicles and weapons systems, and providing cutting-edge IT, cybersecurity, and mission-support solutions.
Shares of the Reston, Virginia-based company have slipped 4.7% from its 52-week high of $369.70. The stock has increased 3.6% over the past three months, slightly outpacing the Dow Jones Industrials Average's ($DOWI) 3.2% gain over the same time frame.
GD stock is up 4.7% on a YTD basis, outperforming DOWI’s 1.8% rise. Moreover, longer term, shares of the company have surged 40% over the past 52 weeks, compared to DOWI’s 13.1% return over the same time frame.
The stock has been trading above its 50-day moving average since last year.
Shares of General Dynamics fell 2.7% on Jan. 28 because the company forecast 2026 annual profit of $16.10 per share - $16.20 per share, well below analysts’ expectations, despite beating Q4 2025 earnings and revenue estimates. Investor sentiment was further pressured after management disclosed that U.S. tariffs are expected to have a larger financial impact in 2026 than the $41 million incurred in 2025. The cautious outlook overshadowed solid quarterly performance, including adjusted EPS of $4.17 and revenue of $14.38 billion.
In contrast, rival RTX Corporation (RTX) has outpaced AT&T stock. VZ stock has soared 8.8% on a YTD basis and 52.9% over the past 52 weeks.
Despite GD stock’s outperformance relative to the Dow, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 23 analysts in coverage, and the mean price target of $393.30 is a premium of 11.2% to current levels.
On the date of publication, Sohini Mondal 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.
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