General Dynamics (GD)

[winston]

not vested

With record operating earnings of $4.2 billion, General Dynamics (NYSE:GD) is a global company specializing in aerospace and defense, combat systems, information systems and technology, and marine systems.

The company is a top supplier for the U.S. Navy and NASSCO (National Steel and Shipbuilding Company), which is a key navy supplier.

The company has a funded backlog worth $51 billion that includes an $18 billion contract signed in 2014 for the delivery of 10 Virginia-class (nuclear attack) submarines spread out until 2023, and $3.4 billion for a five-ship contract, which was signed in 2013.

Source: Investing.com

[winston]

not vested

GD currently trades at an 18.9 times trailing 12 month PE multiple and a forward 12 month PE of 19.2 times. That may sound pricey, but it is cheaper than competitors Lockheed Martin Corp (ticker: LMT) and Raytheon Co (ticker: RTN).

The company has also increased its standardized EBITDA over the past five years.

The chart below shows the PE ratio, revenue and earnings of the company.
17-2-16-gd-fundamentals-screen

Admittedly, the company has posted lousy cash flows in the last several years and there remain questions as to profitability and margins.

There are definite fundamental risks with GD. However, this analysis isn't just about fundamentals.

Source: Forbes

http://www.forbes.com/sites/jeremyhill/ ... cd3a3a4dec

[winston]

not vested

GD currently trades at an 18.9 times trailing 12 month PE multiple and a forward 12 month PE of 19.2 times. That may sound pricey, but it is cheaper than competitors Lockheed Martin Corp (ticker: LMT) and Raytheon Co (ticker: RTN).

The company has also increased its standardized EBITDA over the past five years.

The chart below shows the PE ratio, revenue and earnings of the company.
17-2-16-gd-fundamentals-screen

Admittedly, the company has posted lousy cash flows in the last several years and there remain questions as to profitability and margins.

There are definite fundamental risks with GD. However, this analysis isn't just about fundamentals.

Source: Forbes

http://www.forbes.com/sites/jeremyhill/ ... cd3a3a4dec

[winston]

THE 'OFFENSE' SECTOR IS ALIVE AND WELL

Today, we'll highlight the long-term success of a leading "offense" contractor...

Regular readers know that in the past, we've noted that the U.S. is always involved in military action. The companies that supply the weapons of war are called "defense contractors."

But with so much government spending on foreign conflicts, we believe "offense contractors" might be a more appropriate title. And the business of war is still going strong...

For proof, we'll look at shares of General Dynamics (GD). The company's military divisions produce things like tanks, submarines, combat vehicles, and high-tech computer systems.

But General Dynamics also owns popular luxury-jet company Gulfstream Aerospace – whose "G" series jets are among the most coveted in the world.

As you can see, the government is still spending plenty of money on war. Shares of General Dynamics are up nearly 45% in the past year alone – and they just hit a new all-time high. It's a bull market in offense...

Source: Daily Wealth