Should You Invest in General Dynamics?

OVERVIEW

General Dynamics Corporation is a company based in the United States. The company designs, develops, manufactures, and sells defense and commercial aircraft products around the world. The company makes products like the Gulfstream private jet, armored vehicles, submarines, and other critical communication equipment. The company was founded in 1952.

Why You Should?

  1. General Dynamics is a great reopening in an investor’s portfolio. The company saw a drop in demand for some of its products as countries spend money on the pandemic instead of defense products. Once this pandemic is over, the company will see more contracts, something that will also benefit investors.
  2. General Dynamics is a safe investment option due to the essential nature of the products and services that it sells to countries around the world. Despite the economic times, governments will continue to purchase defense products in order to maintain/increase jobs and other economic benefits. This will benefit the company and its investors.
  3. The company offers a wide range of products and services to its customers around the world. The company sells everything from nuclear submarines and armored vehicles to private jets and other critical communication equipment. This will help the company gain more orders from countries that want to beef up their security. This will also benefit investors.
  4. A Biden administration will benefit defense contractors like General Dynamics as he looks to continue to increase government spending on defense. He will also sign massive trade deals with our allies. Parts of these trade deals will include defense contracts from international governments. This will benefit the company and its investors.
  5. One way that General Dynamics has grown in the past is through acquisitions. General Dynamics looks to continue to grow and expand its product offerings. This has benefited the company in the past and will continue to benefit the company and its investors in the future.

Why You Should Not?

  1. The company faces tough competition from other defense contractors like Boeing, Lockheed Martin, L3 Harris, Northrop Grumman, and many others. This competition might hurt the company and its investors in the future.
  2. The COVID-19 pandemic has hurt some aspects of the company’s growth as countries around the world reduce spending on defense products in favor of medical supplies and stimulus for its citizens. The company will continue to hurt the company until countries around the world get back to normal. This has also hurt investors in the company.

MY OPINION

I think that General Dynamics is a good long-term investment due to its position as a good reopening play, a wide range of products and services, its position as a safe investment option, positive impacts from the Biden administration, as well as continued acquisitions. However, tough competition and negative impacts from the pandemic might hurt the company and its investors in the future.

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Aaditya Patel

Aaditya Patel

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.