NYSE:GD). The company’s shares received a lot of attention from a substantial price increase on the NYSE over the last few months. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine General Dynamics’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.” data-reactid=”28″>Let’s talk about the popular General Dynamics Corporation (NYSE:GD). The company’s shares received a lot of attention from a substantial price increase on the NYSE over the last few months. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine General Dynamics’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
View our latest analysis for General Dynamics ” data-reactid=”29″>View our latest analysis for General Dynamics
Is General Dynamics still cheap?
Good news, investors! General Dynamics is still a bargain right now. According to my valuation, the intrinsic value for the stock is $235.46, but it is currently trading at US$149 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, General Dynamics’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of General Dynamics look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. General Dynamics’s earnings over the next few years are expected to increase by 21%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
1 warning sign for General Dynamics you should know about.” data-reactid=”53″>Keep in mind, when it comes to analysing a stock it’s worth noting the risks involved. Every company has risks, and we’ve spotted 1 warning sign for General Dynamics you should know about.
50 other stocks with a high growth potential.” data-reactid=”54″>If you are no longer interested in General Dynamics, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”55″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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