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With a market cap of $94.8 billion, General Dynamics Corporation (GD) is a global aerospace and defense company that delivers advanced products and services across air, land, sea, space, and cyber domains. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies, serving military, government, and commercial customers worldwide.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and General Dynamics fits this criterion perfectly. The company is known for producing business jets, building nuclear-powered submarines and naval ships, manufacturing land combat vehicles and weapons systems, and providing cutting-edge IT, cybersecurity, and mission-support solutions.
Shares of the Reston, Virginia-based company have slipped 4.7% from its 52-week high of $369.70. The stock has increased 3.6% over the past three months, slightly outpacing the Dow Jones Industrials Average's ($DOWI) 3.2% gain over the same time frame.
GD stock is up 4.7% on a YTD basis, outperforming DOWI’s 1.8% rise. Moreover, longer term, shares of the company have surged 40% over the past 52 weeks, compared to DOWI’s 13.1% return over the same time frame.
The stock has been trading above its 50-day moving average since last year.
Shares of General Dynamics fell 2.7% on Jan. 28 because the company forecast 2026 annual profit of $16.10 per share - $16.20 per share, well below analysts’ expectations, despite beating Q4 2025 earnings and revenue estimates. Investor sentiment was further pressured after management disclosed that U.S. tariffs are expected to have a larger financial impact in 2026 than the $41 million incurred in 2025. The cautious outlook overshadowed solid quarterly performance, including adjusted EPS of $4.17 and revenue of $14.38 billion.
In contrast, rival RTX Corporation (RTX) has outpaced AT&T stock. VZ stock has soared 8.8% on a YTD basis and 52.9% over the past 52 weeks.
Despite GD stock’s outperformance relative to the Dow, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 23 analysts in coverage, and the mean price target of $393.30 is a premium of 11.2% to current levels.
