Following a steady run up after the November 2016 presidential election, defense stocks appear to be at a crossroads. The companies, fueled by expectations of increased defense spending, are trading well above historical valuations. But then again the world seemingly is growing more dangerous by the day, providing little evidence that demand for armaments will soon subside.In this market, investors must choose carefully when putting new money to work. Here's a look at the prospects for Raytheon (NYSE: RTN) and General Dynamics (NYSE: GD), with an eye on which is the better buy right now.CompanyMarket Cap2017 SalesTTM Price-to-Sales RatioTTM Price-to-Earnings RatioTTM Dividend YieldRaytheon$60.74 billion$25.35 billion2.4030.311.52%General Dynamics$65.59 billion$30.97 billion2.1523.461.50%Data source: Yahoo! Finance, data as of March 13, 2018. TTM = Trailing 12 monthElectronics specialist in a digital ageRaytheon, up more than 50% since November 2016, is perhaps the best positioned of … [Read more...] about Better Buy: Raytheon Company vs. General Dynamics
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Here’s where things (Kinda) went wrong for General Dynamics in 2017
article In a vacuum, a 15.63% year-to-date gain would be something to celebrate. But in the case of General Dynamics (NYSE:GD), whose top rivals are up between 26.5% and 30.95%, as the S&P 500 is up 18% for the year, that 15% move is tough to get too excited about. Continue Reading Below It would be wrong to say things are not going well for General Dynamics. But at least from the market's perspective, things seem to be going less right for it than they are for other defense contractors. Even on a three-year or five-year horizon, General Dynamics' shares -- though up 41% and 192%, respectively -- have underperformed those of Lockheed Martin (NYSE:LMT), Northrop Grumman (NYSE:NOC), Raytheon (NYSE:RTN), and Huntington Ingalls (NYSE:HII). Ticker Security Last Change %Chg GD GENERAL DYNAMICS CORPORATION 221.83 -2.36 -1.05% RTN RAYTHEON COMPANY 216.54 -1.19 -0.55% HII HUNTINGTON INGALLS INDUSTRIES INC. 266.11 +0.41 +0.15% Here is what's going on at General … [Read more...] about Here’s where things (Kinda) went wrong for General Dynamics in 2017
Here’s Why General Dynamics Is Spending $9.6 Billion for CSRA
General Dynamics (NYSE: GD) at long last has put its industry-best balance sheet to work, agreeing to acquire government IT firm CSRA (NYSE: CSRA) for $9.6 billion in cash and assumed debt. And while GD doing a deal was no surprise, the target was. The deal, the largest in General Dynamics history, would beef up the company's services and IT business. It continues a wave of consolidation in the government IT sector in which most of GD's large defense rivals have gone in the opposite direction, lessening their exposure to the business. Lockheed Martin, for example, in 2016 shed much of its IT business in a deal that created Leidos Holdings, and L-3 Communications the same year sold its IT unit to CACI International. General Dynamics is bulking up its business providing IT services for the Pentagon. Image source: Getty Images. Upcoming budget bonanza But General Dynamics has a history of going against the grain, and the company clearly sees opportunity here. CSRA, a $5 … [Read more...] about Here’s Why General Dynamics Is Spending $9.6 Billion for CSRA
Defense contractor General Dynamics bets on government IT work with $6.8b deal for CSRA
Visit The Boston Globe Share on Twitter Share on Facebook Comment on this Scroll to top of page By Phil Serafino Bloomberg News February 13, 2018 PARIS — General Dynamics Corp., the maker of Abrams tanks and nuclear submarines, is making a record bet on reinvigorating its information-technology business.The US defense contractor has agreed to buy CSRA Inc. for about $6.8 billion to expand its computer-services offerings for government agencies and military customers. CSRA holders will receive $40.75 a share in cash, General Dynamics said in a statement Monday, a 32 percent premium over the stock’s closing price at the end of last week. Advertisement The acquisition will make General Dynamics the number two provider of federal IT services, trailing Leidos Holdings Inc. Get Talking Points in your inbox: An afternoon recap of the day’s most important business news, delivered weekdays. Thank you for signing up! Sign up for more … [Read more...] about Defense contractor General Dynamics bets on government IT work with $6.8b deal for CSRA
General Dynamics embarks on $9.6 billion deal to capture new defense spending
Aaron Gregg, The Washington Post Published 7:41 am, Monday, February 12, 2018 Photo: Bloomberg Photo By Luke Sharrett. Image 1of/1 CaptionClose Image 1 of 1 The USS Truxtun destroyer sits in dry dock at the General Dynamics Corp. NASSCO shipyard facility in Norfolk, Virginia, on Jan. 9, 2018. The USS Truxtun destroyer sits in dry dock at the General Dynamics Corp. NASSCO shipyard facility in Norfolk, Virginia, on Jan. 9, 2018. Photo: Bloomberg Photo By Luke Sharrett. General Dynamics embarks on $9.6 billion deal to capture new defense spending 1 / 1 Back to Gallery WASHINGTON - Falls Church, Virginia-based government contracting giant General Dynamics announced Monday that it is buying CSRA, a government IT services conglomerate that formed in 2015 amid a wave of industry consolidation. The $9.6 billion deal … [Read more...] about General Dynamics embarks on $9.6 billion deal to capture new defense spending