Ukraine Crisis Driving Defence Stocks Higher
Withdefence stocks soaring amidst the violence in Ukraine and the uncertainty andfear spiralling out of that crisis, Lockheed Martin’s stock price has hitfresh, all-time highs. Lockheed is one of the leading, global aerospace anddefence companies. Given the massive uptick in global arms buying we are seeingas a result of Russia’s invasion of Ukraine, the outlook for the defence sectoras a whole has turned incredibly bullish. NATO countries have been bolsteringtheir defence budgets following Russia’s invasion of Ukraine, a theme whichlooks set to develop further going forward.
Lockheed’sshares had already been trading well ahead of news of the invasion, following abetter-than-expected set of Q4 earnings, released in January. Lockheed reportedEPS of $7.47, well above the $7.16 estimate, on revenues of $17.729 billion,beating estimates for a $17.662 billion result.
TechnicalViews
LMT
Lockheedshares are now trading firmly above the prior 441.43 highs. With both MACD andRSI bullish, the focus is on a continuation higher and a test of the bullchannel top, while that level holds as support. Should we see any downsidecorrection below that level, 417.51 is the next key support to note.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.