Should I Buy GD? GD 2026 Analysis

Should You Buy General Dynamics Corp (GD) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

360.070

1 Day change

2.28%

52 Week Range

369.700

Analysis Updated At

2026/02/04

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Not a good buy right now for an impatient investor: momentum is soft and there’s no proprietary “strong buy” trigger today.
Wait for either (1) a reclaim of the pivot (~~356.7) with follow-through, or (2) a cleaner dip toward support (~~347) before buying.
Sentiment is mixed: hedge funds are buying, but Congress has been selling (4 sells, 0 buys in 90 days), which tilts near-term risk/reward to neutral.

Intellectia Proprietary Trading Signals

AI Stock Picker: No signal on given stock today.
SwingMax: No signal on given stock recently.

Technical Analysis

Trend/Momentum: MACD histogram is negative (-1.963) (bearish) but contracting, suggesting downside momentum is fading rather than reversing strongly.
RSI: RSI(6) ~45 (neutral-to-slightly weak), not oversold—limited “snapback” edge.
Moving averages: Converging MAs = indecision/transition, not a confirmed uptrend.
Key levels: Pivot 356.7 (near-term line in the sand). Support 347.0 then 341.1. Resistance 366.3 then 372.2.
Interpretation: Price below pivot with weak momentum = choppy/fragile setup; better to buy after strength confirmation or closer to support.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning/Sentiment: Put/call ratios (<1) suggest bullish-to-neutral options sentiment (more call interest and call volume).
Activity: Today’s option volume 835 and volume vs 30D avg 8.31x = elevated attention.
Volatility: 30D IV 24.59 vs HV 26.06 (IV slightly below realized). IV percentile ~79% implies IV is relatively high versus its own history, so options are pricing meaningful uncertainty.
Takeaway: Options lean bullish, but elevated IV suggests the market expects bigger moves (not a calm grind higher).

Technical Summary

Sell

Buy

Positive Catalysts

- Contract win: $255M Navy contract (options up to $485M) plus Foreign Military Sale component (UK) supports backlog narrative.
- Sector tailwinds: Multiple analysts cite multi-year defense/aerospace demand runway.
- Flows: “Hedge Funds are Buying” with buying amount up ~248% QoQ (supportive for medium-term).
- Aviation/certification collaboration news (Canada/FAA/Bombardier/GD) can reduce uncertainty around aviation supply/certification friction over time.

Neutral/Negative Catalysts

- Earnings optics: Recent coverage notes GD disappointing earnings / conservative guidance, which can cap near-term multiple expansion.
- Margin pressure: Latest quarter shows gross margin down (see financials), reinforcing the market’s caution on profitability.
- Congress trading: Last 90 days show 4 sells, 0 buys (cautious signal from political/influential trading flow).
- Technical posture: Below pivot with bearish MACD = no clean momentum “buy now” setup.

Financial Performance

Latest quarter: 2025/Q4
Revenue: $14.379B, +7.8% YoY (solid top-line growth).
Net income: $1.143B, -0.44% YoY (slightly down despite higher revenue).
EPS: $4.16, +0.48% YoY (barely positive growth).
Gross margin: 14.89%, down ~4.73% YoY (key negative trend).
Read-through: Growth is present, but profitability/margins are the current weak spot, aligning with the “conservative outlook” commentary.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend: Price targets have generally moved up (Jefferies $385, UBS $393, Morgan Stanley $408, BNP $410, Seaport $444), but several firms still sit at Hold/Neutral (Jefferies, UBS, Citi).
Wall St bulls’ view: Defense spending growth could be larger/longer (Seaport Buy, high PT), multi-year earnings runway, strong demand across segments.
Wall St cautious view: Margin trends and conservative guidance may force estimate moderation (UBS/Jefferies tone), limiting near-term upside until execution improves.
Net: Analyst targets skew higher, but ratings are mixed, consistent with a hold/neutral near-term setup.

15 Analyst Rating

Wall Street analysts forecast GD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GD is 386.85 USD with a low forecast of 360 USD and a high forecast of 410 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

7 Buy

8 Hold

0 Sell

Moderate Buy

Current: 352.050

Low

360

Averages

386.85

High

410

Current: 352.050

Low

360

Averages

386.85

High

410

Jefferies

Sheila Kahyaoglu

Hold

maintain

$360 -> $385

AI Analysis

2026-02-01

Reason

Jefferies

Sheila Kahyaoglu

Price Target

$360 -> $385

AI Analysis

2026-02-01

maintain

Hold

Reason

Jefferies analyst Sheila Kahyaoglu raised the firm's price target on General Dynamics to $385 from $360 and keeps a Hold rating on the shares. The firm views the company's 2026 outlook as conservative but reduced estimates post the earnings report.

UBS

Neutral

maintain

$388 -> $393

2026-01-29

Reason

UBS

Price Target

$388 -> $393

2026-01-29

maintain

Neutral

Reason

UBS raised the firm's price target on General Dynamics to $393 from $388 and keeps a Neutral rating on the shares. Demand is strengthening across most segments, with Gulfstream, Combat Systems, and Marine driving a solid outlook and supporting free cash flow growth even amid sharply higher capex, the analyst tells investors in a research note. Despite a multi-year earnings runway, margin trends and conservative guidance keep estimates largely unchanged and suggest consensus expectations may need to moderate, UBS says.

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GD Should I Buy

GD Should I Buy

Should You Buy General Dynamics Corp (GD) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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