Should I buy General Dynamics stock in 2025? NZ Analysis

What is General Dynamics?

How much is the General Dynamics stock?

The price of General Dynamics stock is rising this week. As of today, the stock trades at USD $275.20, with a 24-hour gain of $1.56 (+0.57%), though reflecting a slight weekly decline of -0.90%. General Dynamics boasts a market capitalization of $73.86 billion and an average three-month trading volume of 1.51 million shares.

The stock shows a low beta of 0.50, signaling modest historical volatility. For New Zealand investors, General Dynamics continues to offer a balanced mix of stability and steady returns within the global defence and aerospace sector.

Our full analysis of the General Dynamics stock

After a rigorous review of General Dynamics' most recent quarterly results and its share price evolution over the past three years, our new analysis leverages proprietary models that synthesise fundamental metrics, technical indicators, sector data, and peer comparisons. This holistic perspective yields a robust profile for the stock—one with compelling catalysts and structural strengths that continue to stand out within the global aerospace and defence sector. So, why might General Dynamics once again represent a strategic entry into the defence and technology space as 2025 unfolds?

Recent Performance and Market Context

General Dynamics (NYSE: GD) is currently trading at $275.20 (as of 30 May 2025), with a 52-week range of $239.20–$316.90. Despite a modest year-on-year pullback (-6.23%), YTD 2025 performance stands at a healthy +4.44%, highlighting underlying resilience amid sector volatility.

Recent months have seen several positive developments underpinning investor confidence:

• FAA and EASA certification for the Gulfstream G800, a business jet that cements General Dynamics’ leadership in corporate aviation.
• Major defence contract wins, including nearly $8 billion in new deals (US Air Force and Space Force), ensuring robust revenue visibility.
• A record order backlog of $90.6 billion at FY2024 year-end, signalling high demand across defence and business aviation.
• Strong momentum in the Aerospace segment, with Q1 2025 revenues up 45.2% year-on-year—counterbalancing near-term operational headwinds in Marine Systems.

Broader macroeconomic factors also present a constructive backdrop: US defence outlays continue to rise in response to global uncertainty, while rapid innovation and digitisation in defence technology expand the total addressable market. Compared to global industrials, the US defence sector remains highly favoured by institutional investors seeking portfolio ballast and long-term growth.

Technical Analysis

Multiple technical indicators demonstrate stabilising price action, suggesting an attractive setup for prospective buyers:

• General Dynamics’ share price is positioned above its 20-day ($274.84) and 50-day ($271.02) simple moving averages, while hovering just below its 200-day mark ($275.86). This structure implies a neutral-to-positive short-term bias, with upside potential on a confirmed move above the 200-day level.
• Relative Strength Index (RSI, 14-day): 49.25—a neutral reading, indicative of balanced buying and selling pressures, and far from overbought territory.
• MACD: +1.94—with MACD crossing above its signal line, recent momentum shifts suggest a nascent bullish reversal.
• Key support at $239.20 (52-week low) provides a clearly defined downside risk threshold.
• Resistance stands at $316.90 (52-week high); any close above $280 would likely confirm a fresh upward phase.

Overall, the technical structure points to a favourable risk-reward setting for staged accumulation, particularly for investors seeking exposure ahead of the next major catalyst or sector rotation.

Fundamental Analysis

General Dynamics’ fundamentals remain exceptionally resilient, with results for full year 2024 and Q1 2025 both exceeding consensus expectations. Several key metrics illustrate the growth story:

• Revenue growth: 2024 sales hit $47.7 billion (+12.9% YoY), while Q1 2025 revenues climbed 13.9%—signalling accelerating momentum, especially in segments exposed to secular tailwinds (Aerospace, Defence Technology).
• Profitability: Full-year net income reached $3.78 billion and diluted EPS advanced to $13.63 (+13.4% YoY).
• Operating margin remained a healthy 10.1%, a testament to ongoing cost discipline and pricing power.
• Return on equity (ROE) of 18.23% places GD among best-in-class in the industrials sector, reinforcing strong capital allocation.
• Valuation: At a forward P/E ratio of 19.08 and a reasonable PEG (price/earnings to growth) metric, the stock appears attractively valued relative to its historical and peer group averages. The 2.18% dividend yield is also well above the NZX 50 average, appealing to both growth and income-focused investors.
• Structural strengths: General Dynamics maintains formidable market share across nuclear submarines, business jets, and land combat systems. Its brand recognition, innovation in high-end aviation and defence systems, and legacy customer relationships provide meaningful barriers to entry.

Critically, the balance between cyclical exposure and recurring revenue streams delivers portfolio resilience—a trait highly sought after amidst rising geopolitical uncertainty.

Volume and Liquidity

GD’s average three-month daily trading volume of 1.51 million shares ensures deep liquidity and tight bid-ask spreads—a clear positive for both institutional and private investors in New Zealand seeking smooth entry and exit. The sizable free float (270.3 million shares outstanding) and predominance of institutional ownership add further ballast, often supporting dynamic price discovery and valuation re-rating around major news or earnings events.

Notably, the recent uptrend in trading volumes around earnings beats and contract announcements reflects growing market conviction, suggesting that current levels may offer an auspicious entry point ahead of another potential re-rating.

Catalysts and Positive Outlook

Several company- and sector-specific catalysts make General Dynamics’ medium-term trajectory especially compelling:

• Sustained modernisation of global defence infrastructure—with the US defence budget on pace to grow 5–7% annually through the end of the decade.
• High-margin expansion in Gulfstream business jets, evidenced by the G800 certification and exceptional Q1 growth, taps into persistent global demand from emerging-market and corporate clients.
• New digital and cybersecurity contracts reinforce GD’s leadership at the confluence of technology and defence—a powerful diversifier from traditional manufacturing cycles.
• Shareholder returns: Over $3 billion returned in 2024 through dividends and buybacks demonstrates management’s confidence and balance-sheet strength.
• ESG and sustainability: General Dynamics’ ongoing investment in advanced, energy-efficient aircraft and maritime systems enhances its reputation with capital allocators seeking sustainability alongside return.

Meanwhile, the robust order backlog of $90.6 billion provides long-term earnings visibility—a premium-rated attribute amongst global industrials.

Looking forward, analyst consensus anticipates annual revenue growth of 8–10% over the coming years, underpinned by geographic diversification, innovation in high-value assets, and durable customer relationships (notably with US and allied governments).

Investment Strategies

In our view, General Dynamics’ risk-return profile lends itself to a variety of investment strategies and time horizons:

• Short-term:
• For tactical traders, the confluence of strong technical support near $270 and potential upside to $292.63 (analyst consensus) allows for risk-controlled accumulation.
• Short-term catalysts (earnings season, major contract announcements, defence budget news) can ignite sharp price moves.
• Medium-term:
• Investors targeting a medium-term horizon could benefit from positive seasonal patterns in the defence sector, as well as the tailwinds from robust order flow and technical outperformance.
• Strong operating momentum in Aerospace and a pivot to margin expansion in Combat and Technologies build a credible case for further gains into 2025–2026.
• Long-term:
• For core, long-term positions, General Dynamics’ balanced capital allocation (growth + dividends), low beta (0.50), and exposure to secular defence and aerospace trends offer compelling compounding prospects.
• The stock’s attractive valuation, healthy dividend, and position at the intersection of technology and national security make it a strategic anchor for globally diversified portfolios, including those in New Zealand with a focus on defensive growth.

Importantly, current prices appear attractive relative to historical valuations, particularly given the robust earnings trajectory and the likelihood of additional upside from new innovation cycles and potential geopolitical tailwinds.

Is It the Right Time to Buy General Dynamics?

Summarising the analysis, General Dynamics exhibits a rare fusion of operational excellence, sustained growth, financial discipline, and powerful macro/sector tailwinds. The company’s accelerating revenue and profit growth—notably in high-value, innovative segments—combined with a robust order book and prudent capital management, provide a firm foundation for upside potential.

Current technical patterns, coupled with strong liquidity and a clear runway of business catalysts (both organic and through contract wins), seem to justify renewed interest at the current support levels. While the stock has traded in a relatively narrow range this year, the confluence of solid fundamentals, attractive valuation, and a positive outlook for the global defence and aerospace industry positions General Dynamics as a standout candidate for selective portfolio inclusion.

For New Zealand investors seeking diversified international exposure—especially to the resilient and strategically vital US defence sector—General Dynamics may be entering a new bullish phase, with market and company-specific factors setting the stage for meaningful price appreciation into 2025 and beyond.

In a landscape defined by both rising geopolitical complexity and growing demand for technological sophistication, General Dynamics stands ready to deliver long-term value—making this a unique window for investors looking to align their portfolios with the future of global security and innovation.

How to buy General Dynamics stock in New Zealand?

Buying shares of General Dynamics (GD) online is straightforward and secure for New Zealand investors when using a regulated broker. You can choose from two main approaches: spot buying, which means directly owning the shares, or trading Contracts for Difference (CFDs), a popular way to speculate on price movements with leverage. Each method offers unique benefits and suits different types of investment strategies. To help you make an informed decision, you’ll find a comprehensive comparison of reputable brokers, including fee structures and key features, further down this page.

Cash buying

A cash purchase of General Dynamics stock means you buy and directly own GD shares through an online broker. As a New Zealand resident, your order will typically be executed on the NYSE in USD, but your broker will handle the NZD-USD currency conversion. Standard fees for international share purchases vary by broker, but you should expect a fixed commission per order—often in the range of NZD $5–$15, plus a small forex margin.

Important example

Example: Let’s say the current General Dynamics share price is USD $275.20. With a NZD $1,000 investment (approximately USD $610, after conversion fees), you can buy about 2 shares of GD and pay a brokerage fee of roughly NZD $10.
✔️ Gain scenario: If the share price climbs by 10%, your shares would now be worth about NZD $1,100.
Result: That’s a NZD $100 gross gain, equal to +10% on your initial investment (before fees and currency changes).

Trading via CFD

CFD trading allows you to speculate on General Dynamics’ share price movements without owning the underlying shares. Instead, you open a position with a broker who mirrors the stock’s performance. CFDs are popular for their leverage—meaning you can control a large position with a smaller outlay. Fees typically include the spread (the gap between buying and selling prices) and overnight financing costs if you hold positions for more than a day.

Important example

Example: With a NZD $1,000 deposit and 5x leverage, you get exposure to NZD $5,000 of General Dynamics shares.
✔️ Gain scenario: If the stock rises by 8%, your position increases by 8% × 5 = 40%.
Result: That’s a gain of NZD $400 on your initial NZD $1,000 stake (excluding spread and overnight fees).

Final advice

Before you invest, it is vital to compare each broker’s fees, platform features, and service level—these factors can make a real difference to your returns. Your ideal method depends on your strategy: spot buying is best for long-term investors seeking dividends and ownership, whereas CFDs suit active traders seeking short-term price movements and leverage. For more details, consult the comprehensive broker comparison table provided below on this page.

Our 7 tips for buying General Dynamics stock

The latest news about General Dynamics

General Dynamics delivered robust Q1 2025 financials, notably outperforming market expectations with strong operational growth. The company reported a 13.9% year-over-year revenue increase to $12.2 billion and a significant 27.1% rise in diluted EPS, driven largely by a 45.2% surge in the Aerospace segment. Operational growth reached 22.4%, reflecting both heightened demand for high-end Gulfstream jets and ongoing momentum from large defense and IT contracts. These results have positively influenced analyst sentiment, with consensus now targeting a 6.3% upside to $292.63 per share. For New Zealand-based analysts and institutional investors, this demonstrates ongoing resilience and profitability in a sector seen as strategically important in a complex geopolitical context.

The Gulfstream G800 jet secured FAA and EASA certifications, reinforcing General Dynamics' leadership in the business aviation market. With the newly certified G800, General Dynamics further strengthens its premium product portfolio, a factor especially relevant to NZ’s regional business jet market and its luxury tourism sector. Certification by the U.S. and European aviation authorities provides international credibility and enables registry and operation in multiple jurisdictions, including the Pacific region. This milestone is set to enhance export prospects and could broaden the appeal for fleet upgrades among Asia-Pacific air charter operators serving New Zealand.

The company’s order backlog reached $90.6 billion at the end of 2024, supporting forward visibility and earnings stability. This exceptional visibility into future revenues is an important indicator for NZ-based investors evaluating long-term defensive equities. The solid order book, supported by fresh multi-billion-dollar contracts from the U.S. Air Force and Space Force, mitigates earnings risk and supports dividend reliability. A stable and growing backlog also indicates that General Dynamics remains a preferred partner for major Western defense procurement, a key consideration amid ongoing regional security concerns in the Asia-Pacific.

General Dynamics maintained a solid financial structure, with strong return on equity and healthy operating margins. With ROE at 18.23% and operating margins holding steady above 10%, the company demonstrates excellent capital efficiency and profitability, providing assurance to global investors seeking both income and growth. For New Zealand investors subject to U.S. withholding tax on dividends, the company’s 2.18% yield—backed by robust cash flow and $3 billion in 2024 shareholder returns—enhances its attractiveness in diversified portfolios. Furthermore, a manageable debt-to-equity ratio of 39.7% supports continued investment in advanced projects without threatening financial stability.

Technical indicators remain broadly neutral to positive, with the stock price holding above key moving averages and a moderate beta profile. As of the last week, General Dynamics trades above both its 20-day and 50-day moving averages, signaling short-term stability despite global market volatility. The 5-year beta of 0.50 indicates lower volatility relative to the broader market—a feature appreciated by many New Zealand pension and wealth managers prioritizing risk-adjusted returns. In combination with sector-leading ratings and consensus targets, these technical factors suggest moderate upside with limited downside risk, making GD a constructive holding for NZ-based portfolios seeking global defense and aerospace exposure.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.