Since December 27, when a rocket attack killed an American contractor in Iraq, the aerospace and defense sector has been the best performing S&P 500 industry group, according to analysts at research service Bespoke Investment Group. Northrop Grumman (NOC) Raytheon (RTN) Lockheed Martin (LMT) and L3 (LHX) are each more than three standard deviations above their 50-day moving average. Historically, when aerospace and defense stocks make that big a move without doing so in the prior three months, returns are typically weak—Northrop Grumman, for example, has underperformed by 11.8 percentage points when similarly overbought, compared with its typical move. Read More...
Why it may be too late to chase defense stocks as Iran strikes U.S. bases
Since December 27, when a rocket attack killed an American contractor in Iraq, the aerospace and defense sector has been the best performing S&P 500 industry group, according to analysts at research service Bespoke Investment Group. Northrop Grumman (NOC) Raytheon (RTN) Lockheed Martin (LMT) and L3 (LHX) are each more than three standard deviations above their 50-day moving average. Historically, when aerospace and defense stocks make that big a move without doing so in the prior three months, returns are typically weak—Northrop Grumman, for example, has underperformed by 11.8 percentage points when similarly overbought, compared with its typical move.
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