The analyst calls the bottom on defense stocks, citing strong earnings from AVAV and JPMorgan's increased investment in defense-related companies, signaling a bullish stance on AVAV.
AVAV had a strong quarter beating revenue and EPS estimates; JPMorgan is increasing investment in defense companies; Jamie Dimon endorses defense sector growth.
The defense trade just reignited... Last night, $AVAV had a monster quarter, beating revenue by 15% and EPS by 24%. WSJ also put out an article last night titled "America Needs More Weapons. JPMorgan Wants to Add Its Firepower." Jamie Dimon is reportedly pushing JPMorgan more aggressively toward its existing $10B investment plan, targeting companies tied to U.S. national security and economic resilience. This is arguably the most important wall street figure giving a nod to the defense long. We're calling the bottom on defense stocks now, you can read our article breaking down our research thesis and picks in the comments or in bio.
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | +4.5% | +4.6% |
| 1 week | -1.5% | -1.7% |
| 1 month | -11.2% | -10.5% |
| 3 months | — | — |
| 6 months | — | — |