The GovCon Index lifted Thursday on U.S. investor speculation that Britain would vote in its referendum to remain in the European Union but felt some downward pressure from a guidance miss by CACI International (NYSE: CACI) and a subsequent downgrade on the stock.
Executive Mosaic‘s GovCon Index of 30 publicly traded contractors rose 0.365 points to 75.559 with 10 out of GCI’s 11 S&P 500-listed stocks in positive territory at the close as markets continued to speculate over the prospects of a “Brexit” from the EU.
Arlington, Virginia-based CACI fell 8.47 percent after the government services contractor issued guidance for its next fiscal year below analyst expectations and Wells Fargo downgraded the stock to “Market Perform” from “Outperform” on the company’s forecasted decline in organic revenue for FY 2017.
McKesson Corp. (NYSE: MCK) led GCI net gainers for a second straight day since a Reuters report said the company was in talks to merge its information technology unit into Change Healthcare, a health technology company based in Nashville, Tennessee.
Large defense primes with significant U.K. and European footprints were mixed as Boeing (NYSE: BA) and Lockheed Martin (NYSE: LMT) led GCI net gainers with General Dynamics (NYSE: GD) and Raytheon (NYSE: RTN) up, while Northrop Grumman (NYSE: NOC) ended at a decline.
Reston, Virginia-based Maximus (NYSE: MMS) rose 2.07 percent and the company acts as prime contractor for the U.K.’s disability benefit application program.
BAE Systems PLC gained 1.73 percent in U.S. over-the-counter markets while London exchange-listed shares in the British defense contractor closed up 0.3 percent.
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| MCK | McKesson Corp.* | 184.00 | +2.47 | +1.36% |
| LMT | Lockheed Martin* | 240.00 | +1.83 | +0.77% |
| BA | Boeing* | 133.55 | +1.78 | +1.35% |
| ACM | AECOM | 33.94 | +1.43 | +4.40% |
| MMS | Maximus | 58.12 | +1.18 | +2.07% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| NAV | Navistar International | 13.14 | +0.73 | +5.88% |
| ACM | AECOM | 33.94 | +1.43 | +4.40% |
| MMS | Maximus | 58.12 | +1.18 | +2.07% |
| ICFI | ICF International | 41.41 | +0.80 | +1.97% |
| CUB | Cubic Corp. | 42.87 | +0.75 | +1.78% |
*Also listed in the S&P 500 composite index
Market Summary
| Advancing GovCon Index Issues | 25 |
| Declining GovCon Index Issues | 5 |
| Unchanged GovCon Index Issues | 0 |
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 79.559 | +0.365 | +0.461% |
| S&P 500 | 2, 113.32 | +27.87 | +1.34% |
| Dow Jones Industrial Average | 18, 011.07 | +230.24 | +1.29% |
| NASDAQ | 4, 910.04 | +76.72 | +1.59% |
