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02.04.26 - 22:36
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US Defense Stocks Take Epic Fury Beating, Leaving UBS Asking Why (ZeroHedge)
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US Defense Stocks Take Epic Fury Beating, Leaving UBS Asking Why
Despite the launch of Operation Epic Fury against Iran in late February, U.S. defense stocks have moved lower rather than higher, prompting a UBS analyst to pen a note to clients this week attempting to answer why the makers of missiles and tanks failed to sustain a wartime rally.
Analyst Allyson Gordon asked the question: "Why Is US Defense Performance Lackluster?"
Let's start with iShares U.S. Aerospace & Defense ETF, or ITA, a basket of major U.S. defense firms. ITA caught an early bid in the first phase of Operation Epic Fury, but the rally failed to hold shortly after that. By late March, the fund was down nearly 16%. The fund has since rebounded in recent sessions, trading around $223 on Thursday morning, but the defense complex's inability to sustain a war-driven rally caught investors off guard.
Gordon provided her take on why defense stocks has underperformed during the first month of the conflict:
Defense ...
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