Wednesday, January 26, 2011

Stock Idea: General Dynamics (GD, $74.77)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at Please visit!)

General Dynamics (GD)
is in the businesses of aviation, shipbuilding, weapons & combat, and information & technology.

GD has a dividend of $1.68, which yields 2.25%; and a PE of 11. Consensus earnings are projected to increase 5.0% and 7.3% in 2011 and 2012.

GD stock fell from approx. $93 to $37 during the financial meltdown, recovered to a trading range in the $57-$77 area, and now looks poised to climb from there. GD stock could provide a good medium-term return of up to 21%. From a trader's point of view, if I owned this stock, I would definitely sell at 91.


The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.

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