Latest news with #GeneralDynamicsCorporation
Yahoo
30-05-2025
- Business
- Yahoo
UAW Members at General Dynamics Corporation (GD)'s Submarine Division Vote to Ratify New Contract
Union members at General Dynamics Corporation (NYSE:GD)'s Electric Boat unit voted to ratify a new contract on Wednesday. The United Auto Workers (UAW), which represents approximately 2,400 marine drafters at the company, stated that 85% of its members voted in favor of the new five-year agreement, securing a 30% wage increase and improved wage progression. Each member is expected to see a $115,000 increase in compensation during the agreement. A team of workers wearing the company's protective wear, looking off into the dawn. Bill Louis, President of Local 571, stated the following in a statement: 'We did negotiations differently this time. Our members worked hard and got involved in our campaign. After more than a decade of 'living to fight another day,' we finally stood up and won the respect that all workers deserve.' This comes over a month after UAW members authorized a strike at General Dynamics Corporation (NYSE:GD)'s submarine division, amid a labor dispute demanding cost-of-living adjustments to keep up with inflation. General Dynamics Corporation (NYSE:GD)'s Electric Boat is part of the Marine Systems segment and is responsible for building nuclear-powered submarines for the U.S. Navy. While we acknowledge the potential of GD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GD and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: ChatGPT Stock Advice: Top 12 Stock Recommendations and 10 Cheap Rising Stocks to Buy Right Now. Disclosure: None. Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
UAW Members at General Dynamics Corporation (GD)'s Submarine Division Vote to Ratify New Contract
Union members at General Dynamics Corporation (NYSE:GD)'s Electric Boat unit voted to ratify a new contract on Wednesday. The United Auto Workers (UAW), which represents approximately 2,400 marine drafters at the company, stated that 85% of its members voted in favor of the new five-year agreement, securing a 30% wage increase and improved wage progression. Each member is expected to see a $115,000 increase in compensation during the agreement. A team of workers wearing the company's protective wear, looking off into the dawn. Bill Louis, President of Local 571, stated the following in a statement: 'We did negotiations differently this time. Our members worked hard and got involved in our campaign. After more than a decade of 'living to fight another day,' we finally stood up and won the respect that all workers deserve.' This comes over a month after UAW members authorized a strike at General Dynamics Corporation (NYSE:GD)'s submarine division, amid a labor dispute demanding cost-of-living adjustments to keep up with inflation. General Dynamics Corporation (NYSE:GD)'s Electric Boat is part of the Marine Systems segment and is responsible for building nuclear-powered submarines for the U.S. Navy. While we acknowledge the potential of GD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GD and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: ChatGPT Stock Advice: Top 12 Stock Recommendations and 10 Cheap Rising Stocks to Buy Right Now. Disclosure: None. Sign in to access your portfolio
Yahoo
10-05-2025
- Business
- Yahoo
General Dynamics Corporation (GD): An Undervalued Dividend Aristocrat to Buy Now
We recently published a list of the . In this article, we are going to take a look at where General Dynamics Corporation (NYSE:GD) stands against other undervalued dividend aristocrats. Dividend-paying stocks are regaining popularity this year as investors look for ways to soften the blow of current market challenges. The S&P Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has fallen by a little over 1.2% since the start of 2025, compared with a 4.1% decline of the broader market. Analysts point out that dividends not only help boost overall returns early on, but there's also clear evidence that companies with growing dividends tend to deliver stronger performance. These stocks often provide better returns with less risk, stay ahead of inflation, and hold up well whether interest rates are climbing or falling. According to S&P Indices' 'Research Insights,' dividends have accounted for roughly a third of total returns since 1926. This is largely because, unlike stock prices that can fluctuate, dividends represent a guaranteed gain once paid out. Even in strong bull markets like the 1950s, 1980s, and 1990s, dividends played a meaningful role in enhancing investor returns. However, their true value becomes especially clear in weaker market cycles, when capital gains are modest or even negative, dividends have often made up more than half of the total return. In some cases, they've been the deciding factor in keeping returns positive. In essence, dividends tend to matter most when market performance falls short. A report from Fenimore Asset Management reveals that between 1972 and 2016, companies that either raised or initiated dividends consistently outperformed those that did not. Historically, a dividend hike has often been viewed as a sign that management is confident in the company's future. This concept is even the basis of the 'Dividend Discount Model,' which values a company based on expected dividend growth. On average, firms that grew or introduced dividends delivered annualized returns of 9.8%, outpacing businesses that didn't pay dividends. These companies typically enjoy rising sales and earnings, generating more cash than they need for reinvestment, allowing them to reward shareholders regularly. This pattern also reflects a strong commitment by management and the board to return value to investors. In contrast, companies that cut or eliminate dividends often struggle financially. These underperformers posted annualized returns of -0.6% during the said period, and such reductions usually point to a weakening business, limited growth prospects, or a need to redirect cash toward internal needs rather than shareholder payouts. The report also highlighted that one of the key advantages of a growing dividend is its ability to preserve purchasing power over time. As inflation gradually pushes up the cost of living, dividend income needs to grow just to keep up. Assuming a long-term inflation rate of 2%, dividends must increase by at least that much to avoid losing value in real terms. While investors seeking income may be drawn to stocks with high current yields, it's just as important to consider how fast those dividends are growing. Focusing solely on yield without looking at growth can be short-sighted. In the long run, companies that steadily raise their dividends provide income that keeps pace with or even exceeds inflation, offering greater financial security. An aircraft maintenance team in a hanger working on a modern business jet. For this list, we scanned the list of the S&P Dividend Aristocrats– the stocks that have raised their payouts for 25 years or more– and identified stocks with low forward P/E ratios. From there, we picked 11 dividend aristocrats with forward P/E ratios below 20, as of May 7, and ranked them accordingly. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Forward P/E Ratio as of May 7: 18.35 General Dynamics Corporation (NYSE:GD) is a Virginia-based aerospace and defence corporation. The company provides a wide range of products and services across several sectors, including business aviation, shipbuilding and maintenance, land-based combat vehicles, weapons and ammunition, as well as technology solutions and services. The stock has surged by over 3% since the start of 2025. In the first quarter of 2025, General Dynamics Corporation (NYSE:GD) reported revenue of $12.22 billion, up nearly 14% from the same period last year. The revenue also surpassed analysts' estimates by $279.2 million. The EPS of $3.66 also beat consensus by $0.18. All four segments reported year-over-year growth in both revenue and operating earnings, with particularly strong performance in the Aerospace segment. Aerospace revenue rose by 45.2%, operating earnings jumped 69.4%, and profit margins improved by 210 basis points, reaching 14.3%. General Dynamics Corporation (NYSE:GD) also demonstrated a solid cash position in the most recent quarter. The company ended the quarter with $1.2 billion available in cash and cash equivalents. Moreover, it returned $383 million to shareholders through dividends. The company offers a quarterly dividend of $1.50 per share, having raised it by 5.6% in March. This was the company's 28th consecutive year of dividend growth, which makes GD one of the best dividend aristocrat stocks. The stock has a dividend yield of 2.23%, as of May 7. Overall, GD ranks 10th on our list of the best undervalued dividend aristocrats to buy now. While we acknowledge the potential of GD as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than GD but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
Yahoo
24-04-2025
- Business
- Yahoo
General Dynamics Corporation (GD): One of the Top Defense Stock Picks from the Goldman Sachs Portfolio
We recently published a list of Goldman Sachs Defense Stocks: Top 12 Stock Picks. In this article, we will take a look at where General Dynamics Corporation (NYSE:GD) stands against other top defense stock picks from the Goldman Sachs Portfolio. After a subdued start to the year, American defense stocks are beginning to see improved returns. Investors are buoyed by President Trump's plans for a $1 trillion defense budget for fiscal 2026, adding to the momentum from last month's unveiling of the F-47 and announcement to resurrect the country's shipbuilding industry. READ ALSO: 10 Best Mid Cap Defense Stocks to Buy According to Analysts and 10 Best Performing Defense Stocks So Far in 2025. The sector has received another boost after market chatter that tariff negotiations to address trade imbalances could include commitments from foreign countries to buy weapons from the US. In a statement released on April 8, Vietnam's prime minister asked for a 45-day delay in the imposition of tariffs and stated his country would buy more American goods, including weapons, to tackle the trade gap. On April 11, Goldman analyst Noah Poponak adjusted his ratings and price targets for defense stocks, and the most notable adjustment was a prominent Navy shipbuilder receiving a double upgrade on the back of an executive order signed by Trump to revitalize the sector. Poponak expects the stock to benefit, with shipbuilding expected to be a high priority within the defense budget. The firm is known for its expertise in stock recommendations, helping investors identify high-potential companies. GS boasts a vast network of analysts, covers a wide range of stocks. It also has a research team led by analysts and economists from around the world, offering insights on the economy and the broader market. In a report released in March this year, Goldman Sachs Research projected a significant increase in defense spending by EU member nations. Military expenditure in the euro area accounted for 1.8% of the GDP in 2024, and is projected to rise to 2.4% by 2027. The firm's analysts estimate the increased spending to positively impact GDP growth, with every €100 spent on defense to boost GDP by approximately €50. Defense stocks have rallied in Europe this year, as regional capitals unlocked billions to supercharge their militaries. While recent tariffs have sparked a major plunge in shares over the past couple of weeks, this has been a year to remember for several European defense contractors, with significant returns so far in 2025. With that said, let's head over to the list of the top defense picks from the Goldman Sachs stock portfolio. A financial adviser looking over a portfolio of securities and stocks. For this article, we scanned Goldman Sachs' 13F portfolio as of December 31, 2024. From there, we picked the top 12 defense stocks according to their stake value and ranked them in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Stake Value as of Q4 2024: $337,296,669 General Dynamics Corporation (NYSE:GD) is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments. In March, the company was awarded a $1 billion contract modification from the Department of Defense, allowing its Electric Boat business unit to purchase long-lead-time materials for the Virginia-class submarines. It is the prime contractor and lead design yard for these submarines and constructs them in a teaming arrangement with Huntington Ingalls Industries, Inc.'s Newport News Shipbuilding. On April 16, General Dynamics Corporation (NYSE:GD)'s subsidiary, Gulfstream Aerospace Corp, announced that the G800 business jet had received FAA and EASA certifications, which will allow the company to begin customer deliveries of the jet in the United States and Europe. Despite recent positive developments, several analysts have lowered their price targets for General Dynamics Corporation (NYSE:GD) due to concerns over potential tariff headwinds. However, the overall outlook for the company is encouraging, with analysts having a consensus Buy rating for the stock, with an average upside of nearly 10%. It is also one of the top defense picks from the Goldman Sachs stock portfolio, with the firm's holdings valued at over $337 million in General Dynamics Corporation (NYSE:GD) as of December 31. According to Insider Monkey's database for Q4 2024, 46 hedge funds held a stake in the company. Overall, GD ranks 6th among the Goldman Sachs Defense Stocks: Top 12 Stock Picks. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
01-04-2025
- Business
- Yahoo
Why General Dynamics Corporation (GD) Is Gaining This Week?
We recently published a list of Why These Defense Stocks Are Gaining This Week. In this article, we will take a look at where General Dynamics Corporation (NYSE:GD) stands against other defense stocks gaining this week. According to The International Institute for Strategic Studies (IISS), global defense spending soared to a record high of $2.46 trillion in 2024, amid major budget increases in Asia, Europe, the Middle East, and North Africa due to deteriorating security environments and threat perceptions. Easing inflation in different parts of the world also allowed countries to invest in and bolster national defense. READ ALSO: 10 Best Performing Defense Stocks So Far in 2025 and 13 Best Defense Stocks to Buy According to Billionaires. The world has been rocked with deadly conflicts over the last few years, with Ukraine and the Middle East being the most affected regions. While the human impact of these wars has been tragic, the defense industry has profited by luring investors into piling up their stocks, with several of the world's top contractors seeing their shares book all-time highs in 2024. Defense stocks across the world are continuing to witness an unprecedented bull run as European capitals unlock billions to supercharge their militaries. Stocks in Europe have rallied this year, with several companies in the sector registering double-digit returns. Asian contractors in South Korea and India are also benefiting from the splurge. In contrast, American defense stocks have been subdued this year and have failed to capitalize on the global rally due to concerns about budget cuts under the new administration. Last month, President Trump hinted at significantly reducing future military spending if things settle down with China and Russia. The creation of DOGE has also reshaped investors' views of the industry. Despite a shaky start to 2025, analysts at UBS are optimistic about the sector as they believe the downside is shrinking. Here is what the firm recently stated: 'Consensus estimates have moved higher since the election despite the 40% sell-off. The downside potential seems increasingly smaller. We believe that the current environment is markedly different from Sequestration and do not believe a similar outcome is likely.' Citi analyst Jason Gursky, in a note to clients on March 5, also urged investors about this being the right time to buy American defense stocks. While the analyst acknowledged the world may be heading toward a multi-polar order, he argued that it was no less dangerous to decrease the need for tools of deterrence. Two recent developments are reinvigorating investor interest in US defense stocks. Trump has unveiled a new next-generation fighter jet, the F-47, to replace the F-22 Raptor. He has also announced to resurrect America's military and commercial shipbuilding industry, which he sees as vital to national security, given the strategic competition with China. With that said, let's now head over to the list of defense stocks that are gaining this week. Please note that the stocks listed are based on one week's performance. Our analysis does not reflect the prospects of the company. Their share price could go high or low in the future, depending on the external market conditions, industry-specific challenges, and the company's capabilities. Additional research and caution are advised before making investment decisions. An executive gazing over a trading floor with illuminated screens tracking stock market movement. For this article, we went through screeners to see how stocks in the aerospace and defense industry performed over the past week (March 24-28). From there, we picked the top 10 defense stocks with the highest percentage gains in share price during this period. All data is as of the close of business on Friday, March 28, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Weekly Gains: 2.15% General Dynamics Corporation (NYSE:GD) is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments. On March 25, the company announced that it was awarded a $1 billion contract modification, allowing its Electric Boat business unit to purchase long-lead-time materials for the Virginia-class submarines. Here is what Mark Rayha, President of General Dynamics Corporation (NYSE:GD) Electric Boat, stated on the deal: 'This contract modification drives continuation of the crucial demand signal that the submarine industrial base needs to invest in the capacity and materials required to increase production volume. Consistent funding for the supply base is essential to achieve the high-rate production the Navy requires of the entire submarine enterprise.' General Dynamics Corporation (NYSE:GD)'s shares are up 2.15% since Monday, primarily driven by the recent contract award. It is among the defense stocks that are gaining this week. Overall, GD ranks 4th among the defense stocks that are gaining this week. While we acknowledge the potential of defense companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
