Executive Mosaic’s GovCon Index closed at an all-time high for the sixth time in eight sessions Wednesday on a mix of strong performances from middle-tier platform and product makers plus predominantly services-oriented contractors.
The GovCon Index gained 0.328 points to 82.193 with nine of the GCI’s 11 S&P 500-listed companies in positive at the close and Lockheed Martin (NYSE: LMT) the most significant net lagger at a decline of $2.29 a day after the company warned of increasing pressure on cash flow from F-35 production without a new contract from the Defense Department.
Lockheed’s second quarter earnings and revenue topped the consensus Wall Street forecast with Sikorsky helicopter sales a main contributor to the sales beat.
Northrop Grumman (NYSE: NOC) and General Dynamics (NYSE: GD) ended among the GCI’s top five net gainers with both stocks up at least $1.00 as services contractors CACI International (NYSE: CACI), Maximus (NYSE: MMS) and Science Applications International Corp. (NYSE: SAIC) also added a full point each.
Global engineering and construction provider AECOM (NYSE: ACM) hit a 52-week high during intraday trade along with government communications services contractor Vectrus (NYSE: VEC).
The S&P 500 traded higher on help from technology and healthcare shares as Morgan Stanley became the fifth large U.S. financial institution to top analysts’ second quarter earnings expectations.
Top GovCon Index Net Gainers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| CACI | CACI International | 93.59 | 1.44 | 1.56% |
| GD | General Dynamics * | 144.54 | 1.23 | 0.86% |
| MMS | Maximus | 59.10 | 1.17 | 2.02% |
| SAIC | Science Applications International Corp. | 60.45 | 1.04 | 1.75% |
| NOC | Northrop Grumman * | 222.55 | 1.00 | 0.45% |
Top GovCon Index Percentage Gainers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| NAV | Navistar International | 12.28 | 0.43 | 3.63% |
| MMS | Maximus | 59.10 | 1.17 | 2.02% |
| SAIC | Science Applications International Corp. | 60.45 | 1.04 | 1.75% |
| GIB | CGI Group | 44.90 | 0.72 | 1.63% |
| ACM | AECOM | 34.82 | 0.54 | 1.58% |
*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 | 82.193 | +0.328 | +0.401% |
| S&P 500 | 2, 173.02 | +9.24 | +0.43% |
| Dow Jones Industrial Average | 18, 595.03 | +36.02 | +0.19% |
| NASDAQ | 5, 089.93 | +53.56 | +1.06% |
