
Wall Street Sees Opportunity in Defense Contractor Stocks on Bright Outlook
The S&P Composite 1500 Aerospace & Defense Index has jumped 40% from its tariff-driven low on April 4, while the S&P 500 has climbed 24% over the same period. The advance has largely been powered by aerospace companies while prominent defense names in the index, such as Northrop Grumman Corp. and Lockheed Martin Corp., have been among the biggest laggards.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 minutes ago
- Yahoo
Elevance Health, Inc. (ELV) Downgrades 2025 Earnings Amid Rising Medical Costs
We recently compiled a list of Elevance Health, Inc. stands third on our list among the most undervalued healthcare stocks. Elevance Health, Inc. (NYSE:ELV) is a major U.S. healthcare company, known for its insurance brands Anthem and WellPoint, and its growing Carelon health services arm. It serves around 45.6 million medical plan members and is recognized for integrating technology and value-based care to improve healthcare delivery. The company is facing increased healthcare utilization and rising medical costs, especially in the ACA and Medicaid segments. This has led to a downgrade in full-year 2025 earnings. A 'market-wide morbidity shift' is evident, with new ACA enrollees using emergency services at nearly double the rate of commercial members, and Medicaid patients showing higher acuity due to redeterminations. Amid these challenges, some investors see Elevance Health, Inc. (NYSE:ELV) as one of the most undervalued stocks in the healthcare sector, given its long-term positioning and strategic adjustments. The company expects a surge in elective procedures by Q4 2025 as members act ahead of expiring tax credits in 2026 that could raise their out-of-pocket costs. To address these pressures, the business is ramping up AI-driven tools for risk detection, care coordination, and operational efficiency. It's also expanding value-based care contracts, particularly in behavioral health and oncology, with over one-third of benefit expenses tied to risk-sharing models. The company is adjusting pricing strategies for ACA plans and advocating for Medicaid access amid potential regulatory changes. A healthcare professional discussing a treatment plan with a patient in an outpatient clinic. Though total membership fell by 212,000 in Q2 due to Medicaid attrition, the Medicare Advantage segment continues to grow. Elevance Health, Inc. (NYSE:ELV) is prioritizing long-term financial stability over aggressive member growth as it navigates rising costs, shifting regulations, and post-pandemic care patterns. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11 minutes ago
- Yahoo
Keybanc Hikes Spotify Technology S.A. (SPOT)'s Price Target To $860, Maintains Overweight Rating
Spotify Technology S.A. (NYSE:SPOT) is among the 13 Best Global Stocks to Buy Right Now. On July 11, Keybanc lifted the stock's price target to $860 from $640, while maintaining an Overweight rating for its shares. The adjustment represents significant upside potential, given its share price of $674.46 at the close on July 23. Copyright: dennizn / 123RF Stock Photo The firm said that it expects Spotify Technology S.A. (NYSE:SPOT)'s second-quarter results and guidance for the third quarter to contain some variability related to foreign exchange, seasonal gross margin dynamics, and social charges. The analyst has advised investors to buy any near-term dips and reiterated that its core thesis remains intact. Keybanc believes that music is under-monetized in a price inflationary market with favorable competitive dynamics and several initiatives that support high-teens revenue growth. In other news, Deutsche Bank on Wednesday also raised Spotify Technology S.A. (NYSE:SPOT)'s target price to $775 from $700 and maintained a Buy rating for its shares. The Luxembourg-based company, which provides digital music-streaming services worldwide, has seen impressive returns in 2025, gaining 51% year-to-date. While we acknowledge the potential of SPOT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Small Cap Defense Stocks to Buy According to Hedge Funds and 13 Best Booming Stocks to Buy Now. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11 minutes ago
- Yahoo
Vertex Pharmaceuticals Incorporated (VRTX) Launches JOURNAVX, First Non-Opioid Acute Pain Treatment
We recently compiled a list of Vertex Pharmaceuticals Incorporated stands second on our list and has recently launched the first non opioid acute pain treatment. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), a global biotech firm based in Boston, is known for developing innovative treatments for serious diseases like cystic fibrosis, sickle cell disease, and beta thalassemia. The company is recognized for its strong pipeline targeting unmet medical needs. In July 2025, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) launched JOURNAVX (suzetrigine), a first-in-class, non-opioid treatment for moderate-to-severe acute pain. JOURNAVX, an oral NaV1.8 pain signal inhibitor, was named a 2025 Breakthroughs Innovation Celebration winner by Premier, Inc. It represents the first new class of pain medicine in decades and offers a safer alternative to opioids by directly targeting pain pathways without addiction risks. This launch marks a major advancement in pain management, aligning with public health efforts to reduce opioid use. JOURNAVX is especially relevant for acute pain scenarios such as post-surgical recovery and injury care. A closeup of pills in a pharmacy, representing the high quality medications of the company. Beyond acute pain, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) continues to expand its reach. Its next-gen cystic fibrosis therapy, ALYFTREK, received approval from the European Commission in July 2025, strengthening its global leadership in this area. The company is also advancing gene-editing therapies like CASGEVY for sickle cell and beta thalassemia, and is developing treatments for kidney disease, type 1 diabetes, and rare genetic disorders. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.