General Dynamics (GD) has reported robust sales and operating margins across all segments for the first quarter, driven by its strategic contracts with the government and industry tailwinds. As growing geopolitical tensions lead to increased defense and aerospace spending globally, we think the stock is poised to soar higher in the near term. Read on.Aerospace and defense company General Dynamics Corporation (NYSE:GD) delivers information technology solutions, nuclear-powered submarines, and tactical vehicles, among other mission-support services. Because its orders remained strong across all segments, the company reported strong first quarter results.
Robust combat vehicle sales to international customers and a substantial improvement in its technologies segment because of investment in new information technology programs has strengthened the company’s balance sheet. The stock has gained 50.9% over the past year and 28.1% so far this year.
Increased defense spending by governments worldwide and growing investments in the development of advanced technologies to support military needs should accelerate GD’s growth.