Since I last covered General Dynamics in January, the stock has declined 19% against the S&P 500's decline of 9%.

While this is justified given General Dynamics' exposure to business jets and the 5% YoY decline in diluted EPS, General Dynamics' $63.8 billion funded backlog is a solid growth catalyst.

Adjusting for the delay in Gulfstream deliveries, General Dynamics managed to grow its diluted EPS by 7% YoY.

General Dynamics is trading at a 16% discount to fair value based on my interpretation of data sourced from I Prefer Income and the dividend discount model.

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