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November 14 Market Close: GovCon Index Posts 4th Straight 1%-Plus Gain, AECOM Surges on CEO’s Infrastructure Comments

GovConIndexUPExecutive Mosaic’s GovCon Index added at least 1 full percent for a fourth consecutive session Monday to new all-time high as defense primes continued to lead gainers and construction company AECOM (NYSE: ACM) also climbed after its CEO offered investors a positive outlook on U.S. infrastructure spending.

GovCon Index gainers outnumbered laggers at a 5-to-1 ratio and all 11 of its S&P 500 components advanced for a third day over the last four with Lockheed Martin (NYSE: LMT) the top performer in the GCI overall and for co-listed stocks.

The post-election surge in defense prime stocks has paced the GovCon Index’s gain over four straight days as investors continue to take positions in many of the country’s largest weapons and platform makers in light of President-elect Donald Trump’s campaign pledge to increase military spending.

Northrop Grumman (NYSE: NOC), Orbital ATK (NYSE: OA) and L-3 Communications (NYSE: LLL) joined Lockheed and AECOM in the GCI’s top five net gainers Monday.

Los Angeles-based AECOM’s stock hit a 52-week high and closed second-highest for net advancers as investors took note of AECOM CEO Michael Burke’s comments to analysts that infrastructure projects backed by state ballot initiatives and higher gasoline taxes will spur an increase in domestic spending regardless of the future Trump administration’s plans, according to the Wall Street Journal.

“I don’t think we’ve ever been more bullish on the future of infrastructure in North America, ” the Journal quoted Burke as saying.

Shares in AECOM surged despite fourth quarter earnings and revenue below Wall Street’s forecast and bottom-line guidance for 2017 that also missed analysts’ expectations.

AECOM is up 32.54 percent over four sessions, while GovCon Index-listed engineering and construction contractor KBR (NYSE: KBR) has added 25.68 percent since the election on investor optimism over infrastructure prospects.

The general U.S. stock market showed mixed activity Monday as the S&P 500 closed in neutral with information technology stocks down 2 percent to lead seven other sectors lower and offset respective 2-percent gains by real estate and financial shares.

Fourteen GovCon Index stocks hit 52-week highs during the Monday session:

  • Booz Allen Hamilton (NYSE: BAH)
  • CACI International (NYSE: CACI)
  • Engility Holdings (NYSE: EGL)
  • General Dynamics (NYSE: GD)
  • Harris Corp. (NYSE: HRS)
  • Huntington Ingalls Industries (NYSE: HII)
  • L-3 Communications (NYSE: LLL)
  • Lockheed Martin (NYSE: LMT)
  • ManTech International (Nasdaq: MANT)
  • Navistar International (NYSE: NAV)
  • Raytheon (NYSE: RTN)
  • Science Applications International Corp. (NYSE: SAIC)
  • Textron (NYSE: TXT)

Market Summary

Index Value Net Change % Change
GovCon Index 88.282 +1.526 +1.759%
S&P 500  2, 164.20 -0.25 -0.01%
Dow Jones Industrial Average 18, 868.69 +21.03 +0.11%
NASDAQ 5, 218.40 -18.72 -0.36%
Advancing GovCon Index Issues 25
Declining GovCon Index Issues 5
Unchanged GovCon Index Issues 0

Top GovCon Index Net Gainers

Symbol Company $ Current Price Net Change ▴ % Change
LMT Lockheed Martin * 267.24 +8.07 +3.11%
ACM AECOM 36.95 +4.73 +14.68%
OA Orbital ATK 85.11 +3.80 +4.67%
NOC Northrop Grumman * 251.12 +3.62 +1.46%
LLL L-3 Communications * 153.93 +3.00 +1.99%

Top GovCon Index Percentage Gainers

Symbol Company $ Current Price Net Change % Change ▴
ACM AECOM 36.95 +4.73 +14.68%
CSRA CSRA * 31.95 +1.53 +5.03%
OA Orbital ATK 85.11 +3.80 +4.67%
MMS Maximus 54.38 +2.36 +4.54%
KBR KBR 16.63 +0.69 +4.33%

Lowest GovCon Index Net Performers

Symbol Company $ Current Price Net Change ▾ % Change
GIB CGI Group 47.76 -0.74 -1.53%
HON Honeywell International * 113.04 -0.21 -0.19%
BAESY BAE Systems 29.64 -0.17 -0.57%
CAE CAE 14.14 -0.07 -0.49%
ICFI ICF 50.20 -0.05 -0.10%

Lowest GovCon Index Percentage Performers

Symbol Company $ Current Price Net Change % Change ▾
GIB CGI Group 47.76 -0.74 -1.53%
BAESY BAE Systems 29.64 -0.17 -0.57%
CAE CAE 14.14 -0.07 -0.49%
HON Honeywell International * 113.04 -0.21 -0.19%
ICFI ICF 50.20 -0.05 -0.10%

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