U.S. Signs Huge Arms Pact with Saudi Arabia

The White House said the U.S. has entered a $29.4 billion agreement to sell F-15SA combat aircraft to Saudi Arabia. The arrangement includes the manufacture of 84 new aircraft and the refurbishment of 70 existing aircraft as well as spare parts, munitions, logistics, training and maintenance. The Boeing Company (NYSE:BA) produces the F-15SA aircraft.

According to the AP, “The sale is part of a larger U.S. effort to realign its defense policies in the Persian Gulf to keep Iran in check. The announcement came as U.S. officials weighed a fresh threat from Tehran.

Tehran warned this week it could disrupt traffic through the Strait of Hormuz, a vital Persian Gulf oil transport route, if Washington levies new sanctions targeting Iran’s crude exports.”

Here’s how Boeing’s competitors are reacting to the news today:

Lockheed Martin Corporation (NYSE:LMT): LMT shares recently traded at $81.62, up $0.68, or 0.84%. They have traded in a 52-week range of $66.36 to $82.43. Volume today was 492,375 shares versus a 3-month average volume of 2,434,920 shares. The company’s trailing P/E is 9.54, while trailing earnings are $8.55 per share.

Raytheon Co. (NYSE:RTN): RTN shares recently traded at $49.03, up $0.4, or 0.82%. They have traded in a 52-week range of $38.35 to $53.12. Volume today was 761,064 shares versus a 3-month average volume of 2,570,910 shares. The company’s trailing P/E is 10.03, while trailing earnings are $4.89 per share.

General Dynamics Corp. (NYSE:GD): GD shares recently traded at $66.73, up $0.78, or 1.18%. They have traded in a 52-week range of $53.95 to $78.27. Volume today was 440,306 shares versus a 3-month average volume of 1,962,660 shares. The company’s trailing P/E is 9.39, while trailing earnings are $7.11 per share.

 

To contact the reporter on this story: Gina Smith at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com