General Dynamics (GD)
The desk's stance
On our research list, not on the slate.
What the company does
Submarines (Electric Boat), Abrams tanks, Gulfstream jets, and defense IT.
In short: Defense prime and business jets. Category: Large-Cap Aerospace & Defense. Sector: Industrials, Aerospace & Defense.
G-Street Value and Score
G-Street Value: $351.02, computed Oct 18, 2026 (confidence: high).
How we got there: 70% analyst leg $351.02 (5 analyst targets, credibility- and freshness-weighted, after 8% optimism discount) + 30% GainStreet factor value $449.17 (24.11× fwd EPS anchored to aerospace-defense multiples) — capped at the analyst leg; factors never out-bull the street.
G-Street Score: 45 out of 100 (Weak).
- Top-line growth & guidance: 7 of 32
- Margin power: 0 of 15
- Revenue visibility & quality: 8 of 11
- Profitability & balance sheet: 19 of 24
- Capital allocation & governance: 5 of 6
- Valuation, sentiment & momentum: 6 of 12
Our current thesis
Updated Oct 18, 2026
The thesis
- Record $136.5B backlog and 1.4x book-to-bill provide exceptional multi-year revenue visibility.
- Gulfstream G700 ramp and aerospace services sustain operating margin expansion toward 14.7%.
- Robust operating cash flow supports steady deleveraging and 29 consecutive years of dividend growth.
Risks
- Gulfstream delivery softness and supply chain frictions threaten second-half delivery targets.
- Shipyard labor constraints pose execution risks on Columbia- and Virginia-class submarine programs.
- Peer LMT trades at a lower 16.9x forward P/E despite comparable defense budget tailwinds.
What we're watching
- Q3 2026 earnings on October 30, focusing on Gulfstream deliveries and margin targets.
- Execution milestones and Navy staffing updates on Columbia-class submarine construction.
- Share price stabilization above $330 support following recent Wall Street target trims.
Latest
General Dynamics trades at $344.23 (18.5x forward P/E), rebounding 3.8% over two weeks after recent defense sector multiple compression. Q2 2026 revenue rose 8.1% YoY to $14.09B with diluted EPS beating consensus at $4.24, underpinned by a record $136.5B backlog and 1.4x book-to-bill. Attention centers on the October 30 Q3 earnings release to assess Gulfstream delivery cadence and Marine Systems execution amid recent target trims.
Key numbers
As of Oct 16, 2026: market cap $93.1B · revenue growth +8.1% year over year · gross margin 15.4% · net margin 8.2% · forward P/E 18.5 · next earnings Oct 30, 2026.
Analyst price targets
Published analyst targets we could trace to a named source.
- RBC Capital, Sector Perform: $360 target (October 2026). Source: investing.com
- TD Cowen, Buy: $380 target (October 2026). Source: kalkine.com
- Citigroup, Neutral: $374 target (October 2026). Source: www.gurufocus.com
- Morgan Stanley, Overweight: $465 target (July 2026). Source: marketbeat.com
- Bank of America, Buy: $415 target (July 2026). Source: marketbeat.com
On the Gainz Lab maps
Who it does business with
- TransDigm supplies General Dynamics — Aircraft components. Gulfstream and defense aircraft carry TransDigm parts.