Defense Stock Roundup: US-Iran Conflict Intensifies, LMT & RTN Win Big Deals
Zacks Investment Research | Jan 06, 2020 09:51PM ET
U.S. defense stocks have been witnessing an upside the past couple of trading sessions, following escalated cross-border tensions between the United States and Iran. The latest airstrike at Baghdad airport that killed Iran’s top general Qasem Soleimani has been the primary catalyst behind the fresh tiff between these two nations. Iran has vowed to take revenge, which intensified possibilities of a war with the United States.
This along with a generous flow of funds from the Pentagon bolstered U.S. defense stocks over the past five trading sessions. Evidently, major indices of the aerospace and defense industry put up a healthy show. Notably, the S&P 500 Aerospace & Defense (Industry) Index rose 3.7%, while the Dow Jones U.S. Aerospace & Defense Index went up 3.6% in the past five trading sessions.
Among past week’s highlights, defense majors namely Lockheed Martin Corp. (NYSE:LMT) , Raytheon Company (NYSE:RTN) and General Dynamics Corp. (NYSE:GD) secured a number of notable deals from the Department of Defense’s daily funding session. Meanwhile, Curtiss-Wright (NYSE:CW) made a meaningful acquisition.
Recap of Past Week’s Important Stories
1. Lockheed Martin’s Aeronautics business division secured a $1.93-billion reimbursable contract in relation to the F-35 Lightning II Joint Strike Fighter Air Systems.
Per the deal terms, Lockheed Martin will provide a consortium of services, which include ground maintenance activities, depot-activation activities, automatic logistics information system operations and maintenance, health management implementation and support, supply-chain management, along with others.
Work related to the deal is expected to conclude by December 2020 (read more: Original post
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