Defense Stock Roundup: Lockheed, Boeing Score Big Wins
Zacks Investment Research | Aug 18, 2017 02:06AM ET
The recent altercation between President Trump and North Korean leader Kim Jong-un sent the major defense stocks rallying. Notably, Trump cautioned North Korea that if it does not refrain from repeated missiles threats, the U.S. will respond with “fire and fury.”
In retaliation, Kim threatened to fire missiles on Guam, a U.S. territory in the Pacific that houses military bases. While the rest of the broader market reacted negatively to the escalated geopolitical tensions, defense stocks picked up pace.
But it is imperative to mention that this tension between the U.S. and North Korea has not been the only driving force behind the defense stocks’ rally. In fact, the space has been a big market winner for quite some time now, on the back of Trump’s presidential win and a few other factors.
However, major indices for the General Dynamics Wins $115M Virginia-class Submarine Deal )
Currently, General Dynamics carries a Zacks Rank #3.
5. Raytheon’s unit, Missile Systems, won a contract for Griffin Missiles worth $104.9 million. The deal include delivery of all variants of Griffin standoff precision guided munitions and related production, test and engineering support.
The agreement has been awarded by Air Force Life Cycle Management Center, Eglin Air Force Base, FL, and is expected to be completed by Dec 31, 2018. The work will be carried out in Tucson, AZ.
Raytheon currently carries a Zacks Rank #4 (Sell).
Performance
The major defense stocks recorded mixed performance for the last five trading sessions. While Rockwell Collins Inc. (NYSE:COL) , Raytheon and Lockheed Martin gained 3.26%, 1.94% and 1.49% respectively, other defense giants like Boeing, General Dynamics, Textron Inc. (NYSE:TXT) and L3 Technologies, Inc. (NYSE:LLL) lost more than 0.5% in the same time frame.
In fact, all the industry majors delivered a stellar performance except Textron in the last six months. Notably, Boeing gained the most with its stock rallying 36.41%, followed by Rockwell Collins.
The following table shows the price movement of the major defense players over the past five trading days and the last six months.
| Company | Last Week | Last 6 Months |
| LMT | 1.49% | 13.59% |
| BA | -0.97% | 36.41% |
| GD | -1.03% | 4.72% |
| RTN | 1.94% | 15.96% |
| NOC | -0.4% | 10.08% |
| COL | 3.26% | 31.49% |
| TXT | -2.41% | -0.48% |
| LLL | 1.48% | 6.16% |
Get The News You Want
Aerospace - Defense Industry 5YR % Return
Aerospace - Defense Industry 5YR % Return
4 Surprising Tech Stocks to Keep an Eye On
Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without.
More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really takes off.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.