GovCon Index Notched Highest Weekly Gain Since Its December 2023 Launch

Executive Mosaic’s GovCon Index ended the week slightly lower at $5,181.95 (-0.03%) after posting record closes on Monday, Tuesday and Thursday. Also, the index, which tracks the stock performances of 30 major government contractors, gained 2.53% week-on-week, the highest weekly gain since its launch in December 2023.

The three major US stock indexes rose sharply Friday, although only the Dow Jones Industrial Average (+0.7%) advanced during the period. While the S&P 500 and Nasdaq Composite snapped their two-day losing streaks, they lost 0.8% and 2.1% overall for the week.

RTX (NYSE: RTX) was GCI’s top weekly performer with +10.84 in five days, aided by the 8.24% jump Thursday. The aerospace and defense conglomerate reported an 8% year-over-year increase in sales in Q2 2024 and a $206 billion backlog at the end of June 2024. Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC) also gained 10.5% and 9.67% for the week due to solid second-quarter earnings results.

Booz Allen Hamilton (NYSE: BAH) declined the most during the week, falling 10.39% and after declining 8.95% Friday. The government and military contractor’s earnings per share of $1.32 in Q1 fiscal 2025 missed analysts’ consensus estimate of $1.52. Still, revenue and net income rose 10.8% and 2.9% versus Q1 fiscal 2024.

On a year-to-date basis, the GovCon Index is up 11% following solid gains in three of five trading sessions this week.

Meanwhile, the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures price index, ticked 0.1% lower in June. Economists and market analysts are optimistic that a rate cut is possible in September if inflation continues to cool.

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