The Next Generation Coming Up

In light of the RTN/UTX monster merger today, aerospace and defense stocks are back in focus for us. While the usual suspects like BA GD LMT NOC are always worth a look (LMT NOC have the best charts but the sector is seeing a bit of sell-the-news here), we want to keep returning to smaller/mid-cap defense stocks as logical targets. 

Aerojet Rocketdyne Holdings, Inc. (formerly GenCorp, Inc.), below on its daily chart, is a name we sold into strength last week. However, the resilience today is noteworthy, with about a $3 billion market cap putting it in the sweet spot to be gobbled up. 

AJRD is just one of a few ideas we will run through for Members in the full recap tonight, gauging the ITA sector ETF, which often gets overlooked. That is a mistake now, of course, given the M&A backdrop, not to mention geopolitical tensions in general.