Defense Contractors

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Defense Contractors

raw scan snapshot — prices as of scan date, not live 43 rows · screens, not recommendations

A sector in violent divergence: the ETF layer (ITA strong-up, DFEN +22.25% 3m) is holding structural bids from NATO spending and geopolitical demand, but individual primes are a mess. RTX is the clear winner — RSI 57.5, +6.46% 30d, in uptrend. NOC is close to capitulation at RSI 30.9 (-27.2% 3m, -35.2% from 52wk high). LMT continues its underperformance (-17.07% 3m, strong-down). Nuclear/uranium exposure via LEU is being hammered (-64.35% from ATH). The ETF layer is the cleanest expression: ITA only -5.53% from 52wk high while the worst individual names are down 26-35%.

Latest bar 2026-06-26 (EOW close). All names fresh.

Quick Snapshot

Signal Reading
Overall 🟡 Sector ETFs holding but individual primes bifurcated
Best setup RTX — only prime in uptrend with positive 30d
Worst setup NOC — RSI 30.9, -35.2% from ATH, collapse regime
War premium ETFs (ITA/DFEN) absorbing geopolitical bid; primes fighting budget headwinds
Nuclear leg LEU/BWXT both declining; nuclear demand thesis not yet in the price

Defense ETFs (Sector Health)

Stock Price 7D 30D 3M RSI Status Action
ITA $236.78 +0.61% +2.8% +9.68% 56.4 🟡 Strength 🔒 Hold
PPA $171.54 -0.48% -1.58% +4.44% 49.1 🟡 Neutral 🔒 Hold
DFEN $74.88 +2.07% +6.06% +22.25% 55.3 🟡 Strength 🔒 Hold
  • ITA (iShares US Aerospace & Defense) is in strong-up trend, golden cross, +6.9% vs SMA200. Only -5.53% from 52-week high — the sector ETF is substantially outperforming any individual name. Price is +8.06% above VWAP, showing the geopolitical bid is REAL and buyers are paying up.
  • DFEN (leveraged defense) at +22.25% 3m is the momentum signal. Even with individual prime underperformance, the levered ETF is working — institutional buying in defense is persistent. Note: +11.31% above VWAP, elevated.
  • PPA is the more conservative broad-defense ETF, neutral at RSI 49.1. Slightly lagging ITA because of heavier commercial aerospace (BA) weighting dragging.

Individual Primes

Stock Price 7D 30D 3M RSI Status Action
RTX $187.99 +2.11% +6.46% -0.49% 57.5 🟡 Uptrend 🔒 Hold
GD $346.71 -0.56% +1.17% +0.45% 49.5 🟡 Neutral 🔍 Watch
LMT $507.40 +1.81% -3.85% -17.07% 44.4 🟡 Pullback 🔍 Watch
LHX $291.25 +1.11% -5.38% -14.74% 41.6 🟡 Pullback 🔍 Watch
BA $217.25 -1.72% -3.14% +14.03% 46.9 🟡 Neutral 🔍 Watch
NOC $501.57 -4.23% -9.52% -27.2% 30.9 🟢 Near Oversold ⚠️ Caution
  • RTX (Raytheon Technologies) is the only prime printing genuine strength: RSI 57.5 in uptrend, +6.46% 30d, golden cross missing but +5.83% above VWAP. Missiles, air defense, Stinger/Patriot demand from ongoing conflicts = direct revenue. This is where the geopolitical war premium lives in the primes.
  • GD (General Dynamics) is the stability play: basing regime, RSI 49.5, only -6.22% from 52wk high. Defense shipbuilding + Gulfstream mix makes it less cyclical on any single program. +3.08% above VWAP; grinding.
  • LMT (Lockheed Martin) continues to disappoint: -17.07% 3m, RSI 44.4 in death-cross. The F-35 program and budget uncertainty are weighing. Relative volume 2.8x on the weekly close — active institutional positioning. Price is -1.21% below VWAP; not extended but not cheap vs its own history. Support at $477.
  • LHX (L3Harris) is deteriorating: -14.74% 3m, -23.2% from 52wk high, strong-down trend. Electronic warfare/C4ISR budget line items under pressure. -5.16% below VWAP. Approaching support at $283.45.
  • BA (Boeing) is the wildcard: +14.03% 3m recovery but -3.14% 30d reversal — the delivery-ramp story has stalled. Volume 1.92x average. At VWAP ($217.25 vs VWAP $219.45), near fair value for current expectations. Not a defense play; it's an industrial recovery play.
  • NOC (Northrop Grumman) is approaching capitulation: RSI 30.9 (nearly oversold), -27.2% 3m, -35.2% from 52wk high. Collapse regime. Price is -16.35% below VWAP ($501.57 vs VWAP $599.60) — deeply dislocated. The B-21 Raider program delays and cost overruns are the culprit. FROTH READ: NOC is the OPPOSITE of frothy — this is the most distressed large-cap in defense. At some price this is interesting, but not before RSI bottoms.

Nuclear / Specialized Defense

Stock Price 7D 30D 3M RSI Status Action
BWXT $197.91 -2.02% -0.52% -2.18% 47.9 🟡 Neutral 🔍 Watch
LEU $165.52 -4.51% -8.11% -9.5% 44.9 🟡 Pullback ⚠️ Avoid
  • BWXT (BWX Technologies — naval nuclear propulsion) is holding near flat: -0.52% 30d, RSI 47.9. The submarine/naval reactor backlog is durable; this is the quality hold in nuclear-defense. +4.94% above VWAP. -18.16% from 52wk high offers a reasonable entry in the context of the nuclear-fuel-cycle thesis.
  • LEU (Centrus Energy — uranium enrichment) is being hammered: -64.35% from 52-week high, -8.11% 30d. The HALEU enrichment thesis is real but near-term catalysts are absent and broader uranium (URA) weakness is pulling it down. At -33.29% below VWAP ($165.52 vs VWAP $248.13) this is deeply dislocated. High-risk, high-volatility; thesis must be conviction-level before adding.

Who Benefits from Current Geopolitics

Scenario Best Positioned Evidence
NATO missile/air defense demand RTX +6.46% 30d, uptrend, above VWAP
General re-armament spend ITA ETF Strong-up, +8.06% vs VWAP, near 52wk hi
Leveraged defense speculation DFEN +22.25% 3m, RSI 55.3
Naval/nuclear propulsion BWXT Flat 30d; naval backlog intact
B-21 program uncertainty NOC (victim) -27.2% 3m, near capitulation
F-35 program pressure LMT (victim) -17.07% 3m, death-cross

RSI / Momentum Read

  • Strong (RSI >55): RTX (57.5), ITA (56.4), DFEN (55.3) — these three show genuine demand
  • Neutral (RSI 45-55): GD (49.5), PPA (49.1), BA (46.9), BWXT (47.9), LMT (44.4)
  • Weakening (RSI 30-45): LHX (41.6), LEU (44.9), NOC (30.9)
  • Key divergence: ETF layer (ITA 56.4, DFEN 55.3) > individual large-cap primes = institutional buyers prefer diversified defense exposure over picking individual program risk

Entry Zones

Stock Entry Zone RSI Trigger Thesis
NOC RSI <30, price ~$480-490 RSI capitulation + volume spike B-21 renegotiation; 6-year backlog; FROTH cleared
LHX RSI <40, price ~$280-285 Approaching support at $283.45 EW/C4ISR long-cycle demand
LMT RSI <40, price ~$480 Support at $477.38 F-35 multi-decade program, LRASM
BWXT Pullback to $185-190 RSI ~40-42 Naval nuclear, submarine pipeline

Action Matrix

Action Tickers Why
🔒 HOLD ITA, DFEN Sector ETFs in uptrend; war-premium bid intact
🔒 HOLD RTX Only prime with positive 30d + uptrend
🔒 HOLD GD Basing, near 52wk high, Gulfstream upside
🔒 HOLD BWXT Naval nuclear backlog; hold on weakness
🔍 WATCH LMT, LHX Death-cross but war backlog intact; wait for RSI <40
🔍 WATCH BA Industrial recovery; check delivery ramp news
⚠️ CAUTION NOC Near oversold but collapse regime; define entry price first
⚠️ AVOID LEU -64% from high, no floor; let uranium complex stabilize
📈 ACCUMULATE PPA Dips to RSI ~45 are the add-zone for broad defense exposure

What Changed This Week (EOW Frame)

Ticker 7D Key Move
RTX +2.11% Continued outperformance; RTX is the consensus prime long
DFEN +2.07% Defense leveraged ETF strong; geopolitical bids holding
LMT +1.81% Bounce off lows but still -17% 3m; suspect
LHX +1.11% Bounce off support; watch $283 as floor
NOC -4.23% Worst week among primes; collapse regime continues
BA -1.72% Delivery-ramp concerns resurfacing
LEU -4.51% Uranium complex drag; nuclear-defense thesis needs catalyst
ITA +0.61% Steady; sector ETF continuing to show institutional demand
10 events

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