Aerospace & defense stocks such as Northrop Grumman, General Dynamics, Raytheon, but also private companies such as AeroVironment (AVAV.US, military UAV producer) gain today, amid rising geopolitical tensions. There are also three other US market sectors which gain today, amid financial markets stress driven, by anticipated Iran missile attack to Israel.
- The one is Chinese stocks, such as JD.Com or PDD Holdings, which are supported by strong Hang Seng performance amid today session (almost 2.5% gain). The other one is uranium market companies such as Uranium Energy Corp, Centrus Energy or Denison Mines, each one gain between 3 to 4% today;
- The last one (and most obvious) are oil&gas companies such as Hess Corp, Occidental Petroleum or Halliburton, supported by almost 4% Brent oil rebound. Those companies gain today despite 0.5% rebound in USDIDX index, 7.4% rise in VIX and 1.5% drop in US tech sector.
Oil & gas companies, and defense stocks rise, while Nvidia and Apple drops almost 3%, with sell-off in semiconductor stocks. Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation5
AeroVironment (AVAV.US) financial dashboard
As we can see below, the company valuation is very high, with PE ratio hitting 100 area, and forward PE at 62. Investors see drone maker as a leading, private beneficiary of UAV military revolution, but pay for its shares very high prices.
Source: XTB Research, Bloomberg Finance L.P
Source: XTB Research, Bloomberg Finance L.P
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
