Valued at $76.3 billion by market cap, General Dynamics Corporation (GD) is a prominent player in the aerospace and defense industry. Headquartered in Reston, Virginia, the company specializes in innovative solutions across aviation, combat systems, marine systems, and information technology, emphasizing cutting-edge technology and exceptional service to support global security and defense needs.

Companies valued at over $10 billion are typically classified as “large-cap stocks,” a category that General Dynamics exemplifies through its robust scale, resilience, and industry leadership. As a global leader in aerospace and defense, General Dynamics’ diversified portfolio and significant contributions to sectors such as aviation, combat systems, marine systems, and IT services highlight its stability and capacity to thrive in a dynamic and complex global environment. 

General Dynamics shares are down 12.5% from their  52-week high of $316.90, achieved on Nov. 13. Over the past three months, the stock has declined 5.9%, lagging behind the broader Dow Jones Industrials Average’s ($DOWI) 9.2% gains over the same time frame.

Over the longer term, GD stock surged 11.1% over the past 52 weeks and posted a 6.8% gain on a YTD basis, significantly underperforming the DOWI's 18.6% surge on a YTD basis and 23.3% returns over the past year.

To confirm the recent bearish trend, GD has traded below its 50-day moving average and its 200-day moving average since mid-November.

General Dynamics shares dropped over 6% amid pressure on government contractors following the announcement of a government spending cut commission led by Elon Musk and Vivek Ramaswamy.

General Dynamics delivered mixed Q3 results, leading to a slight dip in its share price post-earnings. Revenue grew 10.4% year-over-year to $11.67 billion, meeting expectations but narrowly missing the $11.76 billion consensus. EPS of $3.35 missed forecasts by 4.6%. The company maintained a steady free cash flow margin of 10.4%, consistent with the prior year. However, its backlog contracted 3.1% year-over-year to $92.6 billion, slightly below the anticipated $93.1 billion, indicating mild softness in future orders.

In comparison, Northrop Grumman Corporation (NOC) has surged 1.1% over the past 52 weeks and 3.7% on a YTD basis, trailing General Dynamics' performance in both periods.

Despite its recent weak price performance, analysts remain moderately optimistic about General Dynamics' prospects. The stock holds a consensus rating of "Moderate Buy" from 21 analysts, with a mean price target of $333.95, indicating a potential 20.4% upside from current levels.