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The Zacks Analyst Blog Lockheed Martin, RTX, Boeing and L3Harris Technologies
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For Immediate Release
Chicago, IL – October 12, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Lockheed Martin (LMT - Free Report) , RTX Corp. (RTX - Free Report) , Boeing (BA - Free Report) and L3Harris Technologies (LHX - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
U.S. Defense Stocks to Gain as Israel-Hamas Conflict Escalates
Fresh tensions have once again erupted in the Middle East, owing to the ongoing violence between Palestine's Hamas group and Israeli militants that took thousands of lives over the past couple of days. The conflict started with Hamas launching sudden missile attacks on the southern Israeli city of Ashkelon, to which Israel's military responded with multiple airstrikes on the Gaza strip.
This unprecedented assault by Hamas and the retaliatory strikes from Israel are poised to be beneficial for U.S. defense stocks, especially those that are notable weapons suppliers to Israel. Evidently, the Dow Jones U.S. Aerospace & Defense Index surged a solid 6.7%, following the outbreak of the latest Israel-Hamas conflict. This, in turn, puts the spotlight on major weapon manufacturers like Lockheed Martin, RTX Corp., Boeing and L3Harris Technologies.
U.S. Support to Israel
America has been a patronizer for Israel, aiding in promoting the country's economic prosperity and regional security for many years. To this end, it is imperative to mention that the United States signed a landmark agreement with Israel in 2016. Per the contract, the United States pledged to offer military aid worth $38 billion to Israel over a period of 10 years.
Israel has to spend $1.2 billion per year on the advanced military equipment that only the United States can provide. Obviously, this enhanced the inflow of U.S.-made weapons in Israel, thereby bolstering the U.S. defense majors' profits from international markets.
In view of the recent scenario, U.S. President Joe Biden has pledged to provide additional military assistance, including ammunition and interceptors, to make sure that Israel does not run out of these critical assets to defend its cities and citizens, as stated in a CNBC report. Notably, the first plane carrying U.S. ammunition and military supplies has already landed at an air base in Southern Israel.
Moreover, considering the fact that there are quite a few U.S. citizens among the hostages that Hamas has taken over the past couple of days, America has also enhanced its military force in the region to strengthen deterrence.
U.S. Defense Stocks to Gain
Considering the current military instability in Southern Israel, there's a high possibility of witnessing further hostility among the two parties. This, in turn, offers more growth opportunities for the following defense stocks.
Lockheed Martin: LMT offers its C-130 and F-16 aircraft to Israel that the Israel Air Force has been using since the 1970s and 1980s, respectively. Israel is the owner of the largest fleet of F-16 fighters outside the United States.
In light of the current situation, LMT's shares have risen 8.6% since Oct 6, following Hamas' latest strike on Israel. To tackle the ongoing violence in Southern Israel, U.S. Secretary of Defense Lloyd Austin recently ordered more of Lockheed-built F-35 and F-16 fighter aircraft to squadrons in the region.
RTX Corp.: Its Missiles & Defense unit, along with Israel's Rafael Advanced Defense Systems, manufactures the Iron Dome Weapon System. Notably, 10 Iron Dome batteries protect the citizens and infrastructure of Israel. These two companies also co-manufacture David's Sling System, which forms a crucial element of Israel's multi-tier layered missile defense architecture to provide mid-tier regional missile defense.
RTX's shares have risen 5.1% since Oct 6. U.S. National Security Advisor Jake Sullivan said that military supplies already flowing into Israel contain interceptors for the Iron Dome missile defense.
Boeing: Israel Aerospace Industries' major structures work for Boeing's F-15 program, avionics and spare parts for the V-22 Osprey, the T-38 Talon and T-45 Goshawk. In 2022, the company was awarded contracts to deliver four KC-46A tankers to Israel.
BA's shares have risen 3.3% since Oct 6. Following Hamas' attack on Israel, Boeing has sped up the delivery of 1,000 smart bombs to the latter, per a report from Fox News. Meanwhile, Mr. Austin's order also included the deployment of more F-15s in the region. This should boost Boeing, these jets' manufacturers.
L3Harris Technologies: In July 2023, L3Harris announced that it is expanding its partnership with Israel Aerospace Industries' ELTA Systems Group (ELTA) to provide leading-edge, U.S. and NATO interoperable Airborne Early Warning and Control (AEW&C) solutions.
The companies are offering a missionized Bombardier Global 6500, integrated by L3Harris, with ELTA's latest next-generation AEW systems and operationally-proven Battle Management Command and Control Suite. The Global 6500 AEW&C will fly higher, faster, longer and at a lower cost (to sustain, operate and maintain) than the existing AEW&C platforms.
LHX's shares have risen 8.3% since Oct 6. Following the ongoing violence, we may expect further development in the aforementioned partnership to boost Israel's airborne surveillance.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Lockheed Martin, RTX, Boeing and L3Harris Technologies
For Immediate Release
Chicago, IL – October 12, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Lockheed Martin (LMT - Free Report) , RTX Corp. (RTX - Free Report) , Boeing (BA - Free Report) and L3Harris Technologies (LHX - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
U.S. Defense Stocks to Gain as Israel-Hamas Conflict Escalates
Fresh tensions have once again erupted in the Middle East, owing to the ongoing violence between Palestine's Hamas group and Israeli militants that took thousands of lives over the past couple of days. The conflict started with Hamas launching sudden missile attacks on the southern Israeli city of Ashkelon, to which Israel's military responded with multiple airstrikes on the Gaza strip.
This unprecedented assault by Hamas and the retaliatory strikes from Israel are poised to be beneficial for U.S. defense stocks, especially those that are notable weapons suppliers to Israel. Evidently, the Dow Jones U.S. Aerospace & Defense Index surged a solid 6.7%, following the outbreak of the latest Israel-Hamas conflict. This, in turn, puts the spotlight on major weapon manufacturers like Lockheed Martin, RTX Corp., Boeing and L3Harris Technologies.
U.S. Support to Israel
America has been a patronizer for Israel, aiding in promoting the country's economic prosperity and regional security for many years. To this end, it is imperative to mention that the United States signed a landmark agreement with Israel in 2016. Per the contract, the United States pledged to offer military aid worth $38 billion to Israel over a period of 10 years.
Israel has to spend $1.2 billion per year on the advanced military equipment that only the United States can provide. Obviously, this enhanced the inflow of U.S.-made weapons in Israel, thereby bolstering the U.S. defense majors' profits from international markets.
In view of the recent scenario, U.S. President Joe Biden has pledged to provide additional military assistance, including ammunition and interceptors, to make sure that Israel does not run out of these critical assets to defend its cities and citizens, as stated in a CNBC report. Notably, the first plane carrying U.S. ammunition and military supplies has already landed at an air base in Southern Israel.
Moreover, considering the fact that there are quite a few U.S. citizens among the hostages that Hamas has taken over the past couple of days, America has also enhanced its military force in the region to strengthen deterrence.
U.S. Defense Stocks to Gain
Considering the current military instability in Southern Israel, there's a high possibility of witnessing further hostility among the two parties. This, in turn, offers more growth opportunities for the following defense stocks.
Lockheed Martin: LMT offers its C-130 and F-16 aircraft to Israel that the Israel Air Force has been using since the 1970s and 1980s, respectively. Israel is the owner of the largest fleet of F-16 fighters outside the United States.
In light of the current situation, LMT's shares have risen 8.6% since Oct 6, following Hamas' latest strike on Israel. To tackle the ongoing violence in Southern Israel, U.S. Secretary of Defense Lloyd Austin recently ordered more of Lockheed-built F-35 and F-16 fighter aircraft to squadrons in the region.
RTX Corp.: Its Missiles & Defense unit, along with Israel's Rafael Advanced Defense Systems, manufactures the Iron Dome Weapon System. Notably, 10 Iron Dome batteries protect the citizens and infrastructure of Israel. These two companies also co-manufacture David's Sling System, which forms a crucial element of Israel's multi-tier layered missile defense architecture to provide mid-tier regional missile defense.
RTX's shares have risen 5.1% since Oct 6. U.S. National Security Advisor Jake Sullivan said that military supplies already flowing into Israel contain interceptors for the Iron Dome missile defense.
Boeing: Israel Aerospace Industries' major structures work for Boeing's F-15 program, avionics and spare parts for the V-22 Osprey, the T-38 Talon and T-45 Goshawk. In 2022, the company was awarded contracts to deliver four KC-46A tankers to Israel.
BA's shares have risen 3.3% since Oct 6. Following Hamas' attack on Israel, Boeing has sped up the delivery of 1,000 smart bombs to the latter, per a report from Fox News. Meanwhile, Mr. Austin's order also included the deployment of more F-15s in the region. This should boost Boeing, these jets' manufacturers.
L3Harris Technologies: In July 2023, L3Harris announced that it is expanding its partnership with Israel Aerospace Industries' ELTA Systems Group (ELTA) to provide leading-edge, U.S. and NATO interoperable Airborne Early Warning and Control (AEW&C) solutions.
The companies are offering a missionized Bombardier Global 6500, integrated by L3Harris, with ELTA's latest next-generation AEW systems and operationally-proven Battle Management Command and Control Suite. The Global 6500 AEW&C will fly higher, faster, longer and at a lower cost (to sustain, operate and maintain) than the existing AEW&C platforms.
LHX's shares have risen 8.3% since Oct 6. Following the ongoing violence, we may expect further development in the aforementioned partnership to boost Israel's airborne surveillance.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.