General Dynamics Corporation (NYSE: GD) has climbed about 14% over the past year, supported by steady defense spending and strong demand across aerospace and marine systems. Its focus on execution and cost control continues to make it one of the more stable compounders in the defense sector.
Recently, General Dynamics’ aerospace unit, Gulfstream Aerospace, received FAA type certification for its Gulfstream G700 business jet in March 2024, paving the way for customer deliveries and marking a key milestone in its high-end commercial aviation portfolio. On the defense side, its Electric Boat division secured a $987 million U.S. Navy contract modification in June 2025 to support ongoing submarine production, including work tied to the Columbia-class program. These developments show how General Dynamics continues to strengthen its presence across both commercial and government markets.
This article explores where Wall Street analysts think General Dynamics could trade by 2027. We have gathered consensus targets and valuation model insights to show what may drive the stock’s next move. These figures reflect current analyst expectations and are not TIKR’s own predictions.
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Analyst Price Targets Suggest Limited Upside
General Dynamics trades around $342/share today. The average analyst price target is $354/share, which points to roughly 4% upside over the next 12 months. Forecasts remain relatively tight, showing a balanced outlook among analysts:
- High estimate: ~$400/share
- Low estimate: ~$293/share
- Median target: ~$360/share
- Ratings: 8 Buys, 1 Outperform, 10 Holds, 1 Sell
It seems analysts expect small but steady gains. For investors, this suggests GD is viewed as fairly valued, offering reliable long-term returns rather than meaningful upside.
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General Dynamics: Growth Outlook and Valuation
The company’s fundamentals look stable, supported by steady contract wins and disciplined operations:
- Revenue is projected to grow about 5% annually through 2027
- Operating margins are expected to stay near 11%
- Shares trade around 18x forward earnings, close to long-term averages
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using an 18.1x forward P/E suggests roughly $369/share by 2027
- That implies about 8% total upside, or around 3.6% annualized returns
These figures show that GD’s value lies in consistency, not rapid expansion. For investors, the stock offers predictable compounding supported by recurring defense revenue and strong cash generation.
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What’s Driving the Optimism?
General Dynamics continues to benefit from solid defense budgets and renewed strength in commercial aviation. FAA approval of the Gulfstream G700 adds a new growth driver in its aerospace division, while long-term submarine programs like the Columbia class provide visibility for years ahead.
Management’s disciplined execution and capital allocation give analysts confidence in sustained cash-flow generation. For investors, these strengths suggest GD can keep compounding at a steady pace even if broader defense spending levels off.
Bear Case: Valuation and Execution Risk
Despite its stability, GD already trades close to its historical valuation range. With shares around 18x forward earnings, the market appears to have priced in much of the good news. Slower global defense orders or program delays could limit earnings growth.
There is also execution risk in large contracts where cost overruns can pressure margins. For investors, the concern is not loss but stagnation. Returns could stay modest if profit expansion fails to accelerate.
Outlook for 2027: What Could GD Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model using an 18.1x forward P/E suggests GD could trade near $369/share by 2027. That would represent about 8% total upside, or roughly 3.6% annualized returns from current levels.
This projection reflects confidence in GD’s stable operations but also highlights limited re-rating potential. To outperform, GD would need either faster growth in its aerospace segment or stronger-than-expected contract flow in defense systems.
For investors, GD remains a durable, cash-generating compounder suited for those seeking dependable returns and capital preservation rather than aggressive upside.
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