Executive Mosaic’s GovCon Index traded higher Wednesday with Boeing (NYSE: BA) the largest contributor with services-oriented contractors also leaders of gains as U.S. stocks rose on investor confidence in a strengthening domestic economy after the release new data.
GovCon Index advancers slightly edged laggers and seven of its 11 S&P 500 companies that include Boeing closed green.
KBR (NYSE: KBR) finished second for net gainers and first for percentage performers Wednesday as the stock has both extended its rebound from Monday’s sharp decline on lower 2016 earnings guidance and recouped its losses from that disclosure.
The company received an upgrade Wednesday from Johnson & Rice a day after Deutsche Bank lifted its own rating on the stock as analysts at both firms believe KBR has reduced risk through its $870 million in acquisitions this year of government services contractors Wyle and the former Honeywell Technology Solutions.
Johnson & Rice boosted its rating to “Accumulate” from “Hold” with an $18 price target, while Deutsche Bank upgraded the stock to “Buy” from “Hold” with a price target increase to $16 from $14 and said the Monday selloff was “overdone.”
KBR’s Wednesday volume ended at 5 million shares traded to outpace the three-month average nearly four-fold.
Government services contractors CACI International (NYSE: CACI) and Maximus (NYSE: MMS) also helped lift the Index along with General Dynamics (NYSE: GD).
Booz Allen Hamilton (NYSE: BAH) ended Wednesday as the GCI’s largest decliner and recorded its largest one-day loss since late January after the New York Times reported a company employee was the subject of an FBI investigation over a potential theft of classified information.
The stock has entered negative territory on a year-to-date basis at 1.75 percent versus the pre-open YTD gain of 2.1 percent and traded at a volume of 4.9 million shares to exceed the three-month average six-fold.
Investors welcomed the Institute for Supply Management™s non-manufacturing index reading for September that hit its highest level in a year at to 57.1 as a measure of expansion in the U.S. services sector, according to Bloomberg.
Futures markets lifted the odds of an interest rate hike in September to nearly 54 percent, Bloomberg reported.
Market Summary
| Index | Value | Net Change | % Change |
|---|---|---|---|
| GovCon Index | 80.445 | +0.221 | +0.275% |
| S&P 500 | 2, 159.73 | +9.24 | +0.43% |
| Dow Jones Industrial Average | 18, 281.03 | +112.58 | +0.62% |
| NASDAQ | 5, 316.02 | +26.36 | +0.50% |
| Advancing GovCon Index Issues | 18 |
| Declining GovCon Index Issues | 12 |
| Unchanged GovCon Index Issues | 0 |
Top GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –´ | % Change |
|---|---|---|---|---|
| BA | Boeing * | 134.66 | +2.41 | +1.82% |
| KBR | KBR | 15.87 | +1.77 | +12.55% |
| CACI | CACI International | 101.46 | +1.16 | +1.16% |
| GD | General Dynamics * | 153.72 | +0.93 | +0.61% |
| MMS | Maximus | 55.58 | +0.87 | +1.59% |
Top GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –´ |
|---|---|---|---|---|
| KBR | KBR | 15.87 | +1.77 | +12.55% |
| BA | Boeing * | 134.66 | +2.41 | +1.82% |
| MMS | Maximus | 55.58 | +0.87 | +1.59% |
| ACM | AECOM | 29.56 | +0.42 | +1.44% |
| CUB | Cubic Corp. | 46.93 | +0.59 | +1.27% |
Lowest GovCon Index Net Performers
| Symbol | Company | $ Current Price | Net Change –¾ | % Change |
|---|---|---|---|---|
| BAH | Booz Allen Hamilton | 30.31 | -1.19 | -3.78% |
| OA | Orbital ATK | 75.60 | -0.69 | -0.90% |
| ICFI | ICF | 44.71 | -0.54 | -1.19% |
| LMT | Lockheed Martin * | 236.60 | -0.50 | -0.21% |
| NOC | Northrop Grumman * | 212.48 | -0.35 | -0.16% |
Lowest GovCon Index Percentage Performers
| Symbol | Company | $ Current Price | Net Change | % Change –¾ |
|---|---|---|---|---|
| BAH | Booz Allen Hamilton | 30.31 | -1.19 | -3.78% |
| CSRA | CSRA * | 26.61 | -0.32 | -1.19% |
| ICFI | ICF | 44.71 | -0.54 | -1.19% |
| OA | Orbital ATK | 75.60 | -0.69 | -0.90% |
| VEC | Vectrus | 16.98 | -0.15 | -0.88% |
