General Dynamics (GD) rose 5% in early Monday trading after Barron’s touted the company’s stock in a feature story over the weekend. The defense sector is trading broadly higher, but General Dynamics is well ahead of its peers today.
Barron’s Leslie Norton writes in “Jetting Past Budget Threats” that the aerospace and defense company could get hurt by cuts to the U.S. defense budget, but its aerospace division should grow. Its Gulfstream jets are doing well, and it just came out with the new G650 Gulfstream jet, which travels at nearly the speed of sound.
Shareholders have given the company little credit this year, and the stock has fallen about 10%, more than the overall market. Shares trade at about 8 times earnings. But that pessimism appears unwarranted, considering the company’s opportunities, Norton writes.
No comments:
Post a Comment