Defense Stocks: Raytheon Technologies, General Dynamics, Northrop Grumman, L3 Harris Technologies Test Key Level Ahead Of Big Earnings Week As Military Spending Hits A Milestone

Raytheon Technologies (RTX) and several defense companies are gearing up for a big earnings week after military spending hit a milestone. Raytheon stock and defense stocks fell amid a broad sell-off Monday as China extended Covid-19 lockdowns to parts of Beijing.

X

Global military spending topped $2 trillion for the first time, growing by 0.7% in 2021 to reach $2.113 trillion, according to a report released Monday by the Stockholm International Peace Research Institute. The growth trend is likely to intensify this year, as Europe hikes defense spending after the Feb. 24 Russian invasion of Ukraine.

Defense stocks surged in late February and expect to benefit from the higher spending. But last week Lockheed Martin (LMT) earnings took a hit from supply disruptions due to the Covid-19 omicron variant and rising inflation.

IBD Live: A New Tool For Daily Stock Market Analysis

Raytheon Earnings

Estimates: Analysts on Wall Street expect Raytheon Technologies earnings to rebound 13% to $1.01 per share on a 4% sales bounce to $15.798 billion.

Results: Check back early Tuesday.

Raytheon Stock

Shares of Raytheon Technologies dipped 0.9% to 99.68 on the stock market today, but closing above the 50-day line after undercutting that key level and nearly triggering an automatic sell signal. Raytheon stock nearly fell 7% below a 104.44 flat-base buy point after recently clearing that entry.  The relative strength line for RTX stock remains near highs after a solid rally in the past year.

General Dynamics Earnings

Estimates: General Dynamics should see a 1% EPS increase to $2.51 despite a 4% sales gain to $8.996 billion.

Results: Check back early Wednesday. Boeing (BA) also reports early Wednesday.

General Dynamics stock

Shares of General Dynamics (GD) edged up 0.2% to 239.16 on Monday. General Dynamics stock neared a 50-day test intrday. GD stock has formed a flat base with a 255.09 buy point, backed by a rising RS line.

Northrop Grumman Earnings

Estimates: Northrop Grumman is likely to post a 9% EPS decline to $9.56 on a 3% sales gain to $8.877 billion.

Results: Check back early Thursday.

Northrop Grumman stock

Shares of Northrop Grumman (NOC) retreated 0.8% to 444.02 on Monday. Northrop Grumman stock undercut support at the 50-day moving average intraday. NOC stock successfully broke out after the Russian invasion. It has formed a new cup-with-handle base with a 477.36 buy point above longer consolidations, backed by a rising RS line.

As the B-21 Raider bomber jet production ramps up, the U.S. Air Force on April 7 awarded Northrop Grumman a $108 million contract to buy needed parts in advance.

L3 Harris Technologies Earnings

Estimates: Analysts forecast a 4% decline in L3Harris Technologies earnings to $3.06 per share. Revenue is seen sliding 9% to $4.412 billion.

Results: Check back early Friday.

L3 Harris Stock

Shares of L3 Harris Technologies (LHX) gave up 2% to 242.92, undercutting the 50-day line Monday. L3 Harris Technologies stock has formed a short base with a 279.81 buy point on top of a longer consolidation. The RS line for LHX stock remains near highs.

YOU MAY ALSO LIKE:

The Best Defense Stocks For Today — And The Future

These Are The 5 Best Stocks To Buy And Watch Now

Stocks To Watch: Top-Rated IPOs, Big Caps And Growth Stocks

Find The Latest Stocks Hitting Buy Zones With MarketSmith

Why This IBD Tool Simplifies The Search For Top Stocks

Looking For The Next Big Stock Market Winners? Start With These 3 Steps