Why Lockheed Martin and SAIC Stocks Popped, but GE Aerospace Dropped
Are defense stocks cheap yet? Short answer: No.
Last week's news that Europe intends to boost defense spending is translating into gains for U.S. defense stocks Lockheed Martin (NYSE: LMT) and Science Applications International (NASDAQ: SAIC) this morning. As of 10:10 a.m. ET, Lockheed stock is up 3%, and SAIC is gaining 3.3%. GE Aerospace (NYSE: GE) on the other hand, which makes airplane engines for both military and civilian jets, is being left out in the cold, down 1.6%.
But why are two of these defense stocks popping while the third is dropping?
It all starts with Europe. Last week as you may have heard, President Trump suspended shipments of some weapons, and sharing of some intelligence, with Ukraine as the president applied pressure, seeking to encourage that country to enter into peace talks with Russia.
