Defense Stocks Lockheed And RTX Shot Higher When Russia First Attacked Ukraine, Now They Struggle
Portfolio Pulse from Aaron Bry
Defense stocks Lockheed Martin Corp (LMT), RTX Corp (RTX), and Northrop Grumman Corp (NOC) saw significant gains when Russia attacked Ukraine in early 2022, but have since struggled, with LMT down over 6%, RTX down over 17%, and NOC down over 11% year-to-date. In contrast, the SPDR S&P 500 ETF Trust (SPY) is up nearly 20% year-to-date. The decline in defense stocks may be due to investors' reassessment of the impact of the Russia-Ukraine conflict on these companies.
December 05, 2023 | 7:50 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
SPDR S&P 500 ETF Trust (SPY) is up nearly 20% YTD, outperforming defense sector stocks and indicating a broader market rally.
SPY's rise reflects a broader market rally that contrasts with the specific declines in the defense sector, suggesting a divergence in market sentiment.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Lockheed Martin Corp's stock is down over 6% YTD, underperforming after initial gains due to the Russia-Ukraine conflict.
The initial spike in LMT's stock was likely due to expectations of increased defense spending amid the Russia-Ukraine conflict. The current decline suggests a market reassessment of these expectations.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Northrop Grumman Corp's stock has decreased by more than 11% YTD, aligning with the downward trend in defense sector stocks.
NOC's stock decline is part of a broader trend in the defense sector, which is experiencing a pullback after initial gains from the Russia-Ukraine conflict.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
RTX Corp's stock is down more than 17% YTD, indicating a significant underperformance compared to the broader market.
RTX's stock decline may reflect investor disappointment in the company's outlook and performance relative to the broader market rally.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90