What changed
$GD — ADD 📊 | 6 MONTHS THESIS
🎯 Q1 2026 | Rev $12.2B | EPS $4.10 vs $3.69 🟢 | Margin 10.4%
💡 Consensus Q2 EPS estimate of $4.07 implies a sequential decline from Q1’s $4.10 despite strong backlog and margin tailwinds; we see potential for >$4.15 and raised full-year guidance, as the market underestimates the conversion of record backlog into revenue and profit.
📉 Reward/risk: 3.3:1
🏢 Business Quality: 8/10 - Wide-moat defense prime with diversified platforms, long-cycle contracts, and high switching costs; consistent returns on capital and steady cash generation, though dependent on government budgets.
📊 Valuation: fair — Forward P/E 21.6x on FY26 estimates, EV/EBITDA ~14.9x, FCF yield ~4.7%.
🔮 Catalyst: Q2 2026 earnings report (est. late July/early August)
💰 Entry: $360, stop $345, target $410
📊 Our read: ADD. Full analysis →
https://stockduty.xyz/s/GD0614