To predict the stock price of General Dynamics (GD) for the next trading week, we analyze both fundamental and technical factors.
Positive Growth Rating: GD received a high rating of 77% from Validea's Growth Investor model, indicating strong growth potential based on earnings, sales growth, reasonable valuations, and low debt.
Defense Spending Cuts: Recent cuts exceeding $580 million in defense contracts could impact GD's revenue, as the company is a major player in the defense sector.
Analyst Sentiment: While GD's valuation is higher compared to peers like Northrop Grumman, its strong backlog and growth prospects remain attractive.
Current Price: GD closed at $263.41 on March 21, 2025.
RSI: The Relative Strength Index (RSI) for GD is 48.68 (6-day), 53.90 (12-day), and 53.82 (14-day), indicating a neutral position.
MACD: The MACD line is above the signal line, suggesting bullish momentum.
Fibonacci Levels: Key resistance levels are at $275.50 (R1) and $280.49 (R2), with support at $259.32 (S1) and $254.33 (S2).
Based on the Fibonacci pivot point of $267.41 and the bullish MACD signal, GD is expected to trade around $267 next week.
Buy GD as the technical indicators and growth prospects suggest a slight uptrend.
The price of GD is predicted to go up -1.28%, based on the high correlation periods with ACGL. The similarity of these two price pattern on the periods is 97.57%.
GD
ACGL
General Dynamics' Gulfstream franchise has top-tier volume share and margin in the large end of the business jet market and has successfully transitioned to new models like the G700. Business jets are in high demand as the pandemic wanes.
General Dynamics' marine segment has decades of revenue visibility, thanks to the long-cycle nature of shipbuilding.
Defense prime contractors operate in an acyclical business, which could offer some protection if the US were to enter a recession.
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