Stock Price & Analysis

Based on the recent technical indicators and analyst sentiment, GD stock appears to be in a neutral to slightly bearish position with RSI at 49.19 and trading near its 20-day moving average of $263.52, suggesting a hold recommendation at current levels. Recent analyst downgrades and price target reductions from multiple firms including Baird and Goldman Sachs indicate increased caution due to execution challenges and potential risks from the new Department of Government Efficiency.

Based on recent analyst reports and market data, General Dynamics (GD) stock is projected to reach $360 by end of 2025, supported by Citi's recent price target upgrade and positive outlook for defense spending. The stock's technical indicators show a neutral RSI of 49.19 with current price at $266.95, suggesting room for upward movement. Strong defense budget increases of $50 billion and bipartisan support for defense spending will likely drive GD's growth through 2025.

The S1 support level for GD Stock is $260.52 ,The R1 resistant level for GD Stock is $272.36.

As of the end of day on 2025-01-24, the price of GD Stock was $267.

The target price for GD Stock according to analyst rating is 296.83, with the highest price target at 340.00 and the lowest at 245.00. Analysts have a Moderate Buy rating on GD Stock overall.

The market cap of GD is $73.3B.

Based on the provided data, I'll analyze whether GD is overvalued through multiple valuation metrics and recent analyst perspectives.

Valuation Analysis: GD's current P/E ratio of 22.86x is relatively high compared to its historical average, suggesting moderate overvaluation from an earnings perspective.

Recent Analyst Actions: Multiple analysts have recently downgraded GD, citing specific concerns:

• Baird downgraded to Neutral with PT $283, citing poor execution and G700 delivery headwinds
• RBC Capital downgraded to Sector Perform with PT $290, noting Q4 Gulfstream delivery concerns
• Goldman Sachs downgraded to Sell with PT $245, highlighting DOGE risks to Technologies segment

Technical Indicators: The RSI of 49.19 indicates neutral momentum, while the negative MACD (-2.27) suggests bearish short-term momentum.

Conclusion: GD appears moderately overvalued considering its elevated valuation multiples, recent analyst downgrades, and technical weakness. Source: Recent analyst reports from January 2025 showing multiple downgrades and concerns about execution and government spending risks.

General Dynamics Corporation is a global aerospace and defense company. The Company offers a portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions, and technology products and services. The Company’s segments include Aerospace, Marine Systems, Combat Systems and Technologies. The Aerospace segment produces business jets and the standard bearer in new technology aircraft, aircraft repair, support, and completion services. The Marine Systems segment designs and builds nuclear-powered submarines and offers in surface combatants and auxiliary ship design and construction for the United States Navy. The Combat Systems segment manufactures land combat solutions, including wheeled and tracked combat vehicles, weapons systems, and munitions. The Technologies segment provides a spectrum of services, technologies and products to market that seeks solutions combining electronic hardware with specialized software.

Based on analyst projections and market trends, General Dynamics (GD) stock is expected to reach $360 by 2030, supported by Citi's bullish outlook on defense spending and positive demand from Europe. The company's strong position in aerospace, defense, and cybersecurity sectors, along with increased defense budget projections under potential future administrations, provides solid growth fundamentals. Technical indicators and long-term market momentum suggest sustained upward trajectory, with the stock currently showing a healthy correction that could serve as an accumulation opportunity.

GD has a total of 111600 employees.