The GovCon Index rallied 1.197 percent to 78.192 on gains led by the GCI’s services-focused contractors and defense prime Northrop Grumman (NYSE: NOC) on news that the U.S. lifted its embargo on weapons sales to Vietnam.
Science Applications International Corp. (NYSE: SAIC) added 4.01 percent — or $2.10 — after analysts at Jefferies listed SAIC as one of 11 small- to mid-cap stocks investors can look at due to their relative lower reliance on international business in light of a strong U.S. dollar.
According to Marketwatch, Jefferies examined companies that derive 80 percent of their sales inside the U.S. and recommended those 11 stocks as potential buys in the event of a June interest rate hike that could push the dollar higher.
Booz Allen Hamilton (NYSE: BAH) declined 2.1 percent on news that former majority owner The Carlyle Group (NASDAQ: CG) further reduced its stake in the government consulting firm by 9 percent, while shipbuilder Huntington Ingalls Industries (NYSE: HII) fell 1.66 percent — or $2.56 — after its stock was downgraded by Stifel to a “Sell” from “Hold.”
Stifel also set HII’s price target at $135 on concerns that shares in the Newport News, Virginia-based aircraft carrier and submarine maker have a “valuation gap” with other defense contractors on a price-to-earnings basis compared to the company’s free cash flow.
All 10 S&P 500 sectors closed higher as investors welcomed data that showed new home sales climbed 16.6 percent in April to record the highest level since January 2008 and exceed economists’ expectations, according to CNBC.
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| MCK | McKesson Corp.* | 182.77 | +4.12 | +2.31% |
| CACI | CACI International | 96.79 | +3.75 | +4.03% |
| NOC | Northrop Grumman | 214.68 | +2.52 | +1.19% |
| MMS | Maximus | 56.80 | +2.15 | +3.93% |
| SAIC | SAIC | 54.50 | +2.10 | +4.01% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| ICFI | ICF International | 40.58 | +1.65 | +4.24% |
| CACI | CACI International | 96.79 | +3.75 | +4.03% |
| SAIC | SAIC | 54.50 | +2.10 | +4.01% |
| MMS | Maximus | 56.80 | +2.15 | +3.93% |
| MANT | ManTech International | 34.95 | +0.95 | +2.79% |
*Also listed in the S&P 500 composite index
Market Summary
| Advancing GovCon Index Issues | 26 |
| Declining GovCon Index Issues | 4 |
| Unchanged GovCon Index Issues | 0 |
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 78.192 | +0.925 | +1.197% |
| S&P 500 | 2, 076.06 | +28.02 | +1.37% |
| Dow Jones Industrial Average | 17, 706.05 | +213.12 | +1.22% |
| NASDAQ | 4, 861.06 | +95.27 | +2.00% |
