Will the U.S Defence Sector Hold Strength? SPDR S&P Aerospace & Defense ETF gained after President Trump released Afghanistan strategy. Lets analyse how the news will affect the performance of the SPDR S&P Aerospace & Defense ETF (NYSEARCA:XAR) and some of the Sectors leaders.
Defense Stocks Upbeat:
President Trump’s Afghanistan strategy puts defense stocks in focus.
President Donald Trump says he will ramp up U.S. engagement in Afghanistan, the country’s longest war ever.
He does not detail how many troops he will add or give a specific measure of success.
Since the Trump’s election defense stocks outperformed S&P 500 index heavily.
| Company Name | Market Cap | YTD Performance | 1 Year Performance |
|---|---|---|---|
| S&P Aerospace & Defense ETF | – | 17% | 25% |
| Boeing Co(NYSE:BA) | 141.06B | 53% | 77% |
| Lockheed Martin Corporation(NYSE:LMT) | 87.53B | 22% | 20% |
| General Dynamics Corporation(NYSE:GD) | 60.03B | 16% | 32% |
| Raytheon Company(NYSE:RTN) | 51.90B | 26% | 25% |
| Northrop Grumman Corporation(NYSE:NOC) | 47.28B | 17% | 24.50% |
| Orbital ATK Inc(NYSE:OA) | 6.14B | 21% | 43% |
Performance Analysis:
S&P Aerospace & Defense ETF (NYSEARCA:XAR) has delivered 17% year to Date performance and 25% on 1 year time frame. Boeing Co outperformed the sector with whopping 53% on Year to Date and massive 77% on 1 Year time frame. The U.S Air Force said on 21st August, Monday it has awarded contracts to Boeing Co. and Northrop Grumman Corp. for work that could lead to replacement of the nation’s intercontinental ballistic missiles.
Lockheed Martin Corporation(NYSE:LMT) is gained 22% on YTD basis and 20% on yearly basis. Morgan Stanley initiated at Overweight with $342 as price target.General Dynamics Corporation(NYSE:GD) up 16% YTD and Up 32% on yearly basis. Morgan Stanley initiated at overweight with $185 as price target.
Raytheon Company(NYSE:RTN) is surged over 26 % on year to date and the stock up 25% on yearly basis. Morgan Stanley initiated at overweight with $188 as price target. It States that the company has leading position in high demand areas of missile defense.
Orbital ATK Inc(NYSE:OA) wass surged whopping 21% on YTD basis and the stock gained massive 43% on yearly basis. The stock is one of the best out performers next to Boeing Co on yearly time frame.
Will the U.S Defence Sector Hold the Strength?
Finally, The S&P Aerospace and Defense ETF is in a perfect uptrend For Trading investors could wait for 10% correction to accumulate the ETF. Will the U.S Defence Sector Hold the Strength? yes U.S defense sector will hold its strength but it depends upon the U.S economy and political situation also.
