WASHINGTON — In one year since President Donald Trump’s electoral victory, defense stocks became great again.
Specifically, stock price for companies in the aerospace and defense industry has risen 40.8 percent since Nov. 8, 2016, according to CNBC. This comes amid increasing geopolitical tensions, especially between the U.S. and North Korea.
Ten of the 11 defense industry stocks are up at least 15 percent. The biggest benefactor has been Boeing, which is up 87 percent since the election. Over the past year, Boeing secured a $2.1 billion contract for 15 more KC-46A tankers, bringing the total order for production aircraft up to 34 planes. Of course, Boeing’s commercial arm also contributes substantially to the bottom line and appeal to investors.
The solid stock performance for Boeing as well as defense giant Lockheed Martin comes after temporary setbacks after Trump criticized Lockheed’s F-35 Joint Strike Fighter program and Boeing’s Air Force One replacement plane. He subsequently met with Boeing chief executive officer Dennis Muilenburg and Lockheed CEO Marillyn Hewson.
Also influencing stock price is mergers and acquisitions. After a bit of lull in M&A, Boeing, United Technologies and Northrop Grumman all announced major acquisitions in the last six months.
