General Dynamics Corporation (GD)

GD stock forecast: buy or sell

GD stock outlook

  • General Dynamics closed today at $136.51 after going down a -2.11%.
  • The price is currently under the lower Bollinger band, which usually indicates a near-term bounce that you better not try to trade
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Important note:
The thoughts published in this article are personal and not recommendations for you to buy or sell stocks. The author of this report does not know the individual positions of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for informational purposes only

GD stock charts overview

Should I buy General Dynamics stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is GD stock a buy?

In the current situation of General Dynamics there is not any eligible buy setup. This doesn't mean we expect a selloff for GD in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell General Dynamics stock?

Do you know when is it time to sell General Dynamics?. In the same way as when we have to buy shares, determining when is appropiate time to sell is not a haphazard decision, and we must adhere our own trading style. Our trading system selects very simple strategies to guide us on when is the best moment to sell our shares. Be aware that these strategies should not be used for shorting GD stock

A golden rule is that you should not mantain a trading operation that leads to higher than expected losses by the time of the buy. The moment to sell shares must always be determined by the stop-loss (automatic or manual)

Is it time to sell General Dynamics stock?

Currently, General Dynamics stock doesn't match any of our preferred sell setups, so if you own General Dynamics shares and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell General Dynamics stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 2 brokerage ratings were published for General Dynamics. General sentiment is bearish, with 2 out of 2 publishing negative outlooks for the mid and long term

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General Dynamics ratings

Brokerage firmRating
Sep 8th, 2020
Morgan Stanley Sell
Sep 17th, 2020
Goldman Sachs Group Strong buyStrong sell

Technical analysis

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show trend momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Further about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Investors use supports and resistances as a way to find price points on a chart that may work as barriers, preventing the price of an asset to move up or down. A support level is a level where the price may find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue falling until approaching another support level. On the contrary, a resistance level is where the price may find a curb as it rises. In the same way, this means that the price is more likely to "rebound" at this level, and if it finally breaks this level, the price will rise easily until it finds the next resistance

The current resistances are:

  • R1: $137.11 (0.44% above)
  • R2: $137.20 (0.51% above)
  • R3: $137.33 (0.6% above)
  • The current support levels are:

  • S1: $134.52 (-1.46% below)
  • S2: $133.51 (-2.2% below)
  • S3: $132.17 (-3.18% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. It comprises three bands that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    When the price moves out of the band (above the upper line or below the lower line) it tells that the stock is having a very strong trend and therefore can correct the trend to the average. In this case, the price is beneath the upper band, which should mean a possible near-term bounce (at least) until it is back above the band

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that measures price changes to identify when the price of a share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    When the Relative Strength Indicator moves for so long below 70 and above 30, without indicating moments of overbought and oversold, the indicator gets of little use, and we are now in one of these situations.

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    Earnings and financials

    GD had the quarterly financial call and released the 2nd-quarter report in late July. GD beat Wall St estimates and reported a per-share earnings of %s of $2.18, that is a 1.4% improvement versus the estimates of $2.15. Reported revenues were $9.3 billion versus estimates of $9.0 billion.

    This compares to earnings of $2.77 per share same quarter last year, so posted EPS is a drop of -21.3%. Revenue barely changed on an annualized basis in the second-quarter, from $9.6B to $9.3B last quarter.

    GD is hosting the quarterly earnings call on mid next October. Expected earnings of %s a share for this quarter is $2.88. If you own or you are considering buying GD shares, you must be vigilant as earnings reporting day usually has a higher than usual volatility, and price can soar and sink with exceptionally low liquidity and not honouring your buy or stop-loss orders.

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