General Dynamics (NYSE:GD) Stock, Quote.Headers.trade-ideas

General Dynamics

General Dynamics is a defense contractor and business jet manufacturer. The firm's segments include aerospace, marine, combat systems, and technology. General Dynamics' aerospace segment manufactures Gulfstream business jets and operates a global aircraft servicing operation. Combat systems produces land-based combat vehicles such as the M1 Abrams tank and Stryker armored personnel carrier, as well as munitions. The marine segment builds and services nuclear-powered submarines, destroyers, and other ships. The technologies segment contains two main units: an IT business that primarily serves the government market and a mission systems business that focuses on products that provide command, control, computing, intelligence, surveillance, and reconnaissance capabilities to the military.

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U.S. defense sector braces for turbulence in 2025, as Goldman downgrades General Dynamics and reiterates bearish outlook on other names.

Defense Stocks Face Headwinds As Trump&#39;s DOGE Targets Spending Cuts: Goldman Sachs Downgrades General Dynamics

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The Pentagon announced Monday the latest arms package for Ukraine totaling $725 million, the largest since a $1 billion package in April.

US Announces $725 Million Arms Package For Ukraine

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Jefferies analyst Sheila Kahyaoglu downgrades General Dynamics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) from Buy to Hold and lowers the price target from $345 to $300.

Jefferies Downgrades General Dynamics to Hold, Lowers Price Target to $300

The U.S. defense sector is bracing for turbulence in 2025 as Goldman Sachs downgraded a key player in the industry and reiterated a bearish outlook on other defense stocks, citing risks tied to a slowing Pentagon <a href="https://www.benzinga.com/topic/donald-trump">budget and margin pressures.</a>
The defense budget, which has more than doubled over the past decade, could see deceleration — or even contraction — under the watch of Donald Trump's newly formed Department of Government Efficiency led by Elon Musk and Vivek Ramaswamy. 
"We remain cautious on defense stocks as we see decelerating and potentially negative growth in the forward U.S. Department of Defense budget," Goldman Sachs analyst Noah Poponak said in a note Thursday. 
Goldman downgraded General Dynamics Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) from Neutral to Sell, citing fundamental challenges across all four of its business segments.
<h1 class="wp-block-heading">Can The Defense Budget Escape DOGE Spending Cuts?</h1>
Goldman warned that defense spending may have peaked, creating "tough compares" for future growth. 
Historically, defense spending has moved in decade-long cycles, and the current high base of investment means the next phase could be one of contraction. 
Poponak also highlighted the incoming Trump administration appears eager to wind down U.S. involvement in foreign conflicts, further reducing the case for large-scale defense spending.
Poponak indicated the Pentagon's procurement efficiency as "imperfect," which could make defense spending an attractive target for cuts. Given that defense represents a significant chunk of the federal budget, trimming it may be unavoidable as DOGE seeks to deliver cost savings.
&#8220;If DOGE wants to substantially reduce total U.S. government spending, it is hard to avoid DoD,&#8221; Goldman Sachs wrote.
<h1 class="wp-block-heading">Structural Margin Pressures And Valuation Risks</h1>
Beyond the potential for lower top-line growth, defense contractors are grappling with long-term pressures on profitability. Over the past few years, the Pentagon has tightened contractual terms, effectively shifting cost risks to contractors.
"While the rate of decline may be slowing, we think margins are now structurally lower moving forward vs. the last decade," Poponak said.
DOGE could exacerbate this trend by advocating for more fixed-price contracts, even in the early stages of programs, a move that would further constrain profitability. 
Yet despite these challenges, defense stocks as a group continue to trade above their historical valuation averages. 
"Defense stocks trade above their historical average valuation level as a group, with some individual names at their high-end and a premium to the equity market," Poponak commented. 
<h1 class="wp-block-heading">Goldman Sachs Reiterates Sell Recommendations On Defense Contractors</h1>
According to Goldman Sachs, the General Dynamics downgrade reflects weaker-than-peer growth in its Technologies division, margin pressures in Marine shipbuilding, reduced supplemental funding at Combat, and delivery challenges at Gulfstream that are weighing on profitability.
"While General Dynamics trades at a discount to Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and Northrop Grumman Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>), valuation is at a level where it could derate if earnings power is disappointing the market," Poponak said.
Goldman Sachs also trimmed the 12-month price target on General Dynamics from $283 to $245. 
Lockheed Martin, often seen as the bellwether of the defense industry, also remains on the Sell list from Goldman Sachs. 
The analyst flagged risks related to the F-35 program, which has already been named as a potential target by DOGE leadership. 
"LMT currently has a large positive net pension benefit in its free cash flow, and we expect free cash to be near flat the next several years," Poponak said, adding that the company trades at 23 times estimated 2025 earnings, a steep premium for a stock facing margin and spending risks.
Northrop Grumman holds a similar Sell rating, with Goldman expressing concerns about slowing growth in its flagship B-21 bomber program. Poponak highlighted that NOC trades at 20 times the estimated 2025 earnings and warned of "incremental margin risk" ahead.
Huntington Ingalls Industries Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HII#NYSE">HII</a>) is also struggling under margin pressures. Its shipbuilding business, plagued by labor shortages and cost overruns, could see profitability erode further, according to the investment bank. 
The company's recent results revealed weaker recurring margins than previously assumed, with guidance pointing to near-term margins as low as 5%, far below historical levels.
Goldman also reaffirmed its Sell ratings on L3 Harris Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LHX#NYSE">LHX</a>) and Mercury Systems Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRCY#NASDAQ">MRCY</a>), citing slower growth, operational risks, and valuation concerns.
<h1 class="wp-block-heading">Market Reactions</h1>
Shares of General Dynamics fell 1.01% on Thursday, while the broader industry — as tracked by the iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>) – fell 0.64%.
Lockheed Martin fell 1.52%, hitting lows last seen on July 23, 2024.
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Defense Stocks Face Headwinds As Trump's DOGE Targets Spending Cuts: Goldman Sachs Downgrades General Dynamics

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>Goldman Sachs analyst Noah Poponak downgraded the rating for General Dynamics Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) from Neutral to Sell and lowered the price target from $283 to $245. General Dynamics shares closed at $265.43 on Wednesday.<a href="https://www.benzinga.com/quote/GD/analyst-ratings"> See how other analysts view this stock.</a></li>
<li>Deutsche Bank analyst Stephen Powers downgraded Mondelez International, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDLZ#NASDAQ">MDLZ</a>) from Buy to Hold and cut the price target from $78 to $67. Mondelez shares closed at $62.69 on Wednesday. <a href="https://www.benzinga.com/quote/MDLZ/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>UBS analyst Curt Woodworth downgraded Nucor Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NUE#NYSE">NUE</a>) from Buy to Neutral and lowered the price target from $171 to $156. Nucor shares closed at $138.44 on Wednesday. See how other analysts view this stock.</li>
<li>Keybanc analyst Brandon Nispel downgraded the rating for T-Mobile US, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>) from Overweight to Sector Weight and maintained the price target of $252. T-Mobile US shares closed at $234.34 on Wednesday. <a href="https://www.benzinga.com/quote/TMUS/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Wells Fargo analyst Chris Carey downgraded the rating for The Hershey Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSY#NYSE">HSY</a>) from Equal-Weight to Underweight and slashed the price target from $175 to $160. Hershey shares closed at $177.00 on Wednesday. <a href="https://www.benzinga.com/quote/HSY/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
Considering buying HSY stock? Here&#8217;s what analysts think: 
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="591" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12095131/image-104-1024x591.png" alt="" class="wp-image-689625" style="width:470px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12095131/image-104-1024x591.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12095131/image-104-300x173.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12095131/image-104-768x444.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12095131/image-104.png 1103w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
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General Dynamics shares are trading lower after Goldman Sachs downgraded the stock from Neutral to Sell and lowered its price target from $283 to $245.

Goldman Sachs analyst Noah Poponak downgrades General Dynamics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) from Neutral to Sell and lowers the price target from $283 to $245.

Goldman Sachs Downgrades General Dynamics to Sell, Lowers Price Target to $245

Wells Fargo analyst Matthew Akers maintains General Dynamics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) with a Equal-Weight and lowers the price target from $322 to $295.

Wells Fargo Maintains Equal-Weight on General Dynamics, Lowers Price Target to $295

Wolfe Research analyst Myles Walton downgrades General Dynamics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) from Outperform to Peer Perform.

Wolfe Research Downgrades General Dynamics to Peer Perform

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Buybacks

General Dynamics Authorizes Repurchase Of 10M Additional Shares To Enhance Shareholder Value

The Pentagon announced Monday the latest arms package for Ukraine totaling $725 million, the largest since a $1 billion package in April. The arms package will include the second shipment of antipersonnel mines that President Joe Biden<a href="https://www.benzinga.com/markets/commodities/24/11/41873103/trump-reportedly-urges-russian-president-to-deescalate-war-with-ukraine-heres-how-crude-oil-wti-futures-are-reacting"> authorized.</a>
According to a Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-12-02/us-to-announce-725-million-arms-package-for-ukraine-including-mines?sref=TBDibEcD">report</a>, the latest arms package will also include air defense missiles and Javelin, TOW and AT-4 anti-armor weapons, counter-drone munitions, 155mm artillery shells and "equipment to protect critical national infrastructure," according to the Department of Defense.
Read More: <a href="https://www.benzinga.com/etfs/new-etfs/24/12/42270723/new-conservative-etf-aims-to-invest-in-sp-500-without-dei-were-going-to-deliver-that-mandate">New Conservative ETF Aims To Invest In S&amp;P 500 Without DEI: &#8216;We&#8217;re Going To Deliver That Mandate&#8217;</a>
Last week, the White House asked Congress to provide an additional $24 billion in security assistance which it is seeking to designate as "emergency spending." The Biden administration requested $8 billion for the Ukraine Security Assistance Initiative to finance weapons contracts with U.S. defense contractors with the remaining $16 billion to be used for replenishing U.S. weapons stocks.
Major General Patrick Ryder, a Pentagon spokesman, told reporters "We understand the urgent situation in Ukraine and the president's direction and will continue to do everything we can to ensure that Ukraine is getting the aid that it needs."
Why It Matters: Government and military contracting companies, including General Dynamics Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>), may benefit from the latest arms package to Ukraine. Specifically, the Javelin weapon system is produced by the Javelin Joint Venture, a partnership between Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and RTX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) subsidiary Raytheon.  
Investors can gain exposure to the broader aerospace and defense industry through ETFs that invest in U.S. government and military contractors including the iShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and the SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>). 
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Contracts

General Dynamics' Gulfstream Aerospace Secures $991M Contract to Provide Logistics Support for U.S. Military Aircraft Fleets Over Seven Years

President-elect Donald Trump has spent the week following <a href="https://www.benzinga.com/news/24/11/41768178/donald-trump-defeats-kamala-harris-to-win-2024-election">his election win</a> penciling in cabinet picks. His choice for Defense Secretary, Pete Hegseth, is raising eyebrows. 
The Pick: Hegseth was a co-host on Fox Corp&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FOXA#NASDAQ">FOXA</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FOX#NASDAQ">FOX</a>) &#8220;Fox &amp; Friends,&#8221; Trump&#8217;s favorite television show. 
The Minnesota native, an Iraq and Afghanistan War veteran, has never held a government position. Hegseth has been a strong supporter of Trump since 2016.
<a href="https://apnews.com/article/trump-hegseth-defense-secretary-pentagon-2d8030921ecef933778cf92afd40ec72">According</a> to the Associated Press, Trump encouraged his supporters to buy Hegseth's book in June and said that if he won the election, "The woke stuff will be gone within a period of 24 hours. I can tell you."
Hegseth supports removing women from combat roles in the military, <a href="https://www.independent.co.uk/news/world/americas/us-politics/pete-hegseth-defense-secretary-trump-women-military-b2646325.html">according</a> to The Independent. 
Why it Matters: Trump&#8217;s selection of Hegseth surprised many Wall Street observers, <a href="https://www.barrons.com/amp/articles/trump-defense-secretary-pete-hegseth-stocks-d9af9d58">according</a> to Barron&#8217;s. The television host was not on the radar of research analysts.
Trump announced plans Tuesday to appoint Elon Musk and Vivek Ramaswamy to form the <a href="https://www.benzinga.com/government/regulations/24/11/41931503/trump-forms-doge-with-elon-musk-and-vivek-ramaswamy-at-the-helm-will-it-impact-tesla-ceos-role-at-the-ev-giant-and-spacex">&#8220;Department of Government Efficiency,&#8221;</a> aimed to &#8220;cut wasteful expenditures.&#8221; 
The sprawling U.S. military complex, which now <a href="https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/">comprises</a> 13% of the federal budget at nearly $1 trillion, has been unable to pass an independent audit for the last six years, <a href="https://www.reuters.com/world/us/pentagon-fails-audit-sixth-year-row-2023-11-16/">according</a> to Reuters.
Wall Street is apparently not worried that Musk and Ramaswamy will gut military spending to federal contractors. The iShares US Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) has risen over 7% since Trump&#8217;s election win. General Dynamics Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>), Lockheed Martin Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and Rtx Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) have posted gains in that period.
What&#8217;s Next: Several Democratic Party politicians <a href="https://x.com/SenWarren/status/1856502912551158049">including</a> Senator Elizabeth Warren voiced disapproval of Trump&#8217;s pick, citing Hegseth&#8217;s lack of experience. The &#8220;Fox &amp; Friends&#8221; anchor will face a confirmation hearing in the Senate following Trump&#8217;s inauguration.
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Photo courtesy of Wikimedia.

Politics

FOXA

Trump's Surprise Defense Secretary Pick Pete Hegseth Jolts Wall Street

<a href="https://www.cnn.com/2024/11/08/politics/biden-administration-american-military-contractors-deploy-ukraine/index.html">https://www.cnn.com/2024/11/08/politics/biden-administration-american-military-contractors-deploy-ukraine/index.html</a>
&nbsp;
The Biden administration has lifted a de facto ban on American military contractors deploying to <a href="https://www.cnn.com/world/europe/ukraine">Ukraine</a> to help the country's military maintain and repair US-provided weapons systems, particularly F16 fighter jets and Patriot air defense systems, an official with direct knowledge of the plan told CNN.
The new policy, approved earlier this month before the election, would allow the Pentagon to provide contracts to American companies for work inside Ukraine for the first time since <a href="https://www.cnn.com/world/europe/russia">Russia</a> invaded in 2022. Officials said they hope it will speed up the maintenance and repairs of weapons systems being used by the Ukrainian military.
It is not clear whether Donald Trump will keep the policy in place when he takes office in January. Trump has said he hopes to end the war between Ukraine and Russia "within 24 hours" of returning to power.
"In order to help Ukraine repair and maintain military equipment provided by the US and its allies, DoD (Department of Defense) is soliciting bids for a small number of contractors who will help Ukraine maintain the assistance we've already provided," a defense official said.
"These contractors will be located far from the front lines and they will not be fighting Russian forces. They will help Ukrainian Armed Forces rapidly repair and maintain US provided equipment as needed so it can be quickly returned to the front lines."
The defense official confirmed that the US is moving forward with the plan because several of the systems the US has provided Ukraine, particularly F-16s and Patriots, "require specific technical expertise to maintain."
The shift marks another significant change <a href="https://www.cnn.com/2024/06/20/politics/ukraine-us-air-defense-capabilities/index.html">in the Biden administration's Ukraine policy</a>, as the US looks for ways to give Ukraine's military an upper hand against Russia. The Pentagon is expected to start listing the contracts online soon, the official said.
Over the last two years, Biden has insisted that all Americans, and particularly US troops, stay far away from the Ukrainian frontlines. The White House has been determined to limit both the danger to Americans and the perception, particularly by Russia, that the US military is engaged in combat there. The State Department has explicitly warned Americans against traveling to Ukraine since 2022.
As a result, US-provided military equipment that has sustained significant damage in combat has had to be transported out of the country to Poland, Romania, or other NATO countries for repairs, a process which takes time. US troops have also been available to help the Ukrainians with more routine maintenance and logistics, but only from afar via video chat or secure phone—an arrangement that has come with inherent limitations, since US troops and contractors are not able to work directly on the systems.
Allowing experienced, US government-funded American contractors to maintain a presence in Ukraine means they will be able to help fix damaged, high-value equipment much faster, officials have told CNN. One advanced system that officials say will likely require regular maintenance is the F-16 fighter jet, which Ukraine received earlier this year.
Companies bidding for the contracts would be required to develop robust risk mitigation plans to reduce threats to their employees, officials told CNN.
"The Department made this decision after careful risk assessment and in coordination with interagency stakeholders," the defense official said. "Each US contractor, organization or company will be responsible for the safety and security of their employees and will be required to include risk mitigation plans as part of their bids."
Current and former officials familiar said the policy change will not result in the kind of major American contractor presence that existed in Iraq and Afghanistan. Instead, it would likely result in anywhere from a few dozen to a couple hundred contractors working in Ukraine at a time.
"It is worth noting that there already are a wide array of American companies who have personnel in Ukraine fulfilling contracts for the Ukrainian government, so this will not lead to a substantial increase of employees of US companies working on the ground in Ukraine," the defense official said.

Macro Economic Events

General

'Biden Administration To Allow American Military Contractors To Deploy To Ukraine For First Time Since Russia's Invasion' - CNN

Macro Notification

Pentagon Lifts Ban On U.S. Defense Contractors In Ukraine To Repair US-Supplied Weaponry

Invesco has unveiled a new series of thematic exchange-traded funds (ETFs) that focus on artificial intelligence, cybersecurity, and defense sectors. These funds aim to leverage emerging trends within these industries.
What Happened: The newly introduced ETFs, named Invesco Artificial Intelligence Enablers, Cybersecurity, and Defence Innovation Ucits, are based on benchmarks crafted by Kensho, a division of S&amp;P Global Indices. Kensho utilizes natural language processing to pinpoint companies with significant involvement in each theme, categorizing them into &#8220;core&#8221; and &#8220;non-core&#8221; groups, Financial Times<a href="https://www.ft.com/content/476d3e81-cbd2-4484-8fb5-4a074dcaa97c"> reported</a> on Thursday.
As per Invesco, core companies generate a substantial portion of their revenue from products and services aligned with these themes, while non-core companies provide essential inputs without focusing on end products. The AI enablers strategy targets firms advancing AI technology and infrastructure, whereas the cybersecurity ETF invests in companies protecting enterprises from unauthorized electronic access. The defense fund provides exposure to companies developing advanced weapons and defensive systems
Here are a few ETFs and how they fared in the past year, as per <a href="https://pro.benzinga.com">Benzinga Pro</a>:
Artificial Intelligence
<ul>
<li>iShares U.S. Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITW#NYSE">ITW</a>) increased 45.40% over the year with holdings like Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).</li>
<li>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>), with similar exposure, rose 43.17%.</li>
<li>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTX#NYSE">FTX</a>), which gives exposure to Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Netflix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>), increased 45.59%.</li>
</ul>
Cybersecurity
<ul>
<li>First Trust NASDAQ Cybersecurity ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIBR#NASDAQ">CIBR</a>) increased 38.08%. Its holdings include Cisco Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>), CrowdStrike Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) and Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>).</li>
<li>Amplify Cybersecurity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HACK#NYSE">HACK</a>) rose 39.57%. Along with Broadcom, and Cisco, the ETF&#8217;s major holdings also include Palo Alto Networks, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>), and General Dynamics Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>).</li>
<li>iShares Cybersecurity &amp; Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHAK#NYSE">IHAK</a>) with exposure to companies such as SentinelOne, Inc. Class A (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/S#NYSE">S</a>), and Fortinet, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>), rose 33.95%.</li>
</ul>
Defense
<ul>
<li>iShares US Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) with exposure to companies such as General Electric (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>) and RTX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) increased 33.86%.</li>
<li>Invesco Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>) with exposure to companies such as Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) and Lockheed Martin Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) increased by 43.05%.</li>
<li>SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) was up by 34.86%. It gives exposure to Axon Enterprise, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXN#NASDAQ">AXN</a>), L3Harris Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LHX#NYSE">LHX</a>).</li>
</ul>
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41794596/bitcoin-ethereum-dogecoin-slingshot-to-the-moon-after-trump-victory-but-sharp-correction-m?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum, Dogecoin Slingshot To The Moon After Trump Victory But &#8216;Sharp&#8217; Correction Might Be In Store: Analyst Views BTC Between $80-90K By End Of Year</a>
Why It Matters: The launch of these ETFs by Invesco comes at a time when thematic investing is<a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41713236/donald-trumps-return-to-white-house-could-propel-these-etfs-to-new-highs"> gaining traction among investors</a> looking to capitalize on specific industry trends. The focus on artificial intelligence, cybersecurity, and defense aligns with growing global interest in these areas, driven by technological advancements and increasing security concerns.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/11/41734887/cathie-woods-latest-shake-up-dumps-palantir-and-jack-dorseys-block-along-with-tesla-buys-amazon-?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Cathie Wood&#8217;s Latest Shake-up: Dumps Palantir And Jack Dorsey&#8217;s Block Along With Tesla, Buys Amazon And Meta</a></li>
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Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Invesco

New ETFs

AAPL

AMZN

AVGO

CIBR

CRWD

CSCO

FTEC

FTNT

HACK

IHAK

MSFT

NFLX

PANW

Invesco Launches New ETFs Targeting AI, Cybersecurity, And Defense. Here's How Some Of Their Peers Have Performed In The Past Year

ATRO

AXON

EVEX

SARO

Shares of aerospace and defense companies are trading higher after Donald Trump won the 2024 presidential election.

Election Day is here. A win for Republican Donald Trump or Democrat Kamala Harris could <a href="https://www.benzinga.com/general/politics/24/11/41750069/80-million-votes-cast-in-early-voting-mail-in-voting-before-election-day-over-50-of-2020-electio">move different market sectors</a>. 
Here is a list of stocks to watch as the country <a href="https://www.benzinga.com/markets/equities/24/11/41724383/wall-street-struggles-ahead-of-election-day-energy-sector-outperforms-solar-stocks-rise-whats-dr">waits for the final tally.</a> 
Trump Media &amp; Technology Group Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>) shares are climbing on heavy trading volume on the final day of voting. The stock soared 270% from its September lows as investors speculate on a potential Trump victory. Matthew Tuttle, CEO of investment fund Tuttle Capital Management, has <a href="https://www.benzinga.com/news/24/10/41608242/trump-media-technology-stock-soars-after-msg-rally-will-the-gains-hold">called the stock</a> "a binary bet on the election." However, some analysts <a href="https://www.benzinga.com/general/politics/24/10/41630878/djt-short-squeeze-could-push-stock-to-60-if-trump-wins-but-analysis-says-loss-could-make-shares-">​​suggest</a> the stock could plummet if <a href="https://www.benzinga.com/general/politics/24/09/40783924/trump-vs-harris-election-forecaster-with-9-out-of-10-accurate-predictions-makes-final-call-says-">Trump loses the election</a>. 
Read More: <a href="https://www.benzinga.com/general/politics/24/10/41630878/djt-short-squeeze-could-push-stock-to-60-if-trump-wins-but-analysis-says-loss-could-make-shares-">DJT Short Squeeze Could Push Stock To $60 If Trump Wins, But Analysis Says Loss Could Make Shares &#8216;Worthless&#8217;</a>
XOM, FSLR: Investors are watching Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) stock as traditional energy companies <a href="https://www.benzinga.com/markets/equities/24/11/41724383/wall-street-struggles-ahead-of-election-day-energy-sector-outperforms-solar-stocks-rise-whats-dr">could gain </a>from favorable oil and gas policies under a Trump administration. It&#8217;s worth noting that the <a href="https://www.benzinga.com/government/23/10/35240230/us-is-producing-more-oil-under-biden-than-at-any-point-under-the-trump-administration">U.S. produced more oil</a> under the Biden administration than at any point under the Trump administration. Conversely, solar energy companies like First Solar, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FSLR#NASDAQ">FSLR</a>) are on watch as they could benefit from Harris' support of renewable energy policies and climate initiatives. 
RTX: Wall Street analysts are generally bullish on defense stocks in the event of a Trump victory putting shares of RTX (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) under watch as the polls close.  RTX, formerly Raytheon Technologies, is one of the &#8220;Big Five&#8221; defense contractors which are likely to benefit from increased <a href="https://www.benzinga.com/news/24/10/41332235/why-raytheon-parent-rtx-stock-is-up">defense spending</a>. General Dynamics Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) and Palantir Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) are other defense contractors stocks to watch. 
LEN: Homebuilders' stocks such as Lennar Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) could gain from Harris&#8217; plans to promote homeownership if elected. One Harris proposal includes providing up to $25,000 in down payment assistance for first-time homebuyers who have paid their rent on time for two years. Other home builders to watch include D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) and KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>). 
Read Also:&nbsp;
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41690154/shock-october-jobs-report-leaves-fed-in-tight-spot-experts-say-interest-rate-cuts-a">Shock October Jobs Report Leaves Fed In &#8216;Tight Spot:&#8217; Experts Say Interest Rate Cuts Ahead</a></li>
</ul>
Image: Shutterstock

Movers

FSLR

PLTR

5 Stocks To Watch On Election Day: Trump Media, Exxon, First Solar, RTX, Lennar

Deutsche Bank analyst Scott Deuschle maintains General Dynamics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) with a Hold and lowers the price target from $309 to $306.

Deutsche Bank Maintains Hold on General Dynamics, Lowers Price Target to $306

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