Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Nuclear Fallout: Winning and Losing Stocks from Trump’s Iran Deal Exit

President Trump pulled the United States out of the “horrible, one-sided” Iran nuclear pact yesterday, a move that was met with widespread consternation and condemnation in Europe, where German, British, and French leaders have vowed to remain committed to the deal with or without the U.S. And for good reason; should the deal fall through completely, Iran has vowed to begin enriching uranium again within weeks of such a development, though Iran has also stated that it will remain in the nuclear deal without the U.S.

Trump’s decision to exit the landmark deal and impose sweeping sanctions on Iran and anyone doing business in the country has rippled across the stock market, positively and negatively affecting a number of sectors and individual companies. We’ll look at a few of the biggest winners and losers of the deal below.

 Evan El-Amin/Shutterstock.com

Evan El-Amin/Shutterstock.com

Winners: Defense Stocks

Defense stocks like Lockheed Martin Corporation (NYSE:LMT) and Northrop Grumman Corporation (NYSE:NOC) are some of the prime beneficiaries of the heightened military tension and outright conflict that is likely to result from Trump’s move, with missile strikes reportedly being launched by Yemen rebels as well as Israel within hours of the U.S exiting the nuclear pact.

The development should help defense stocks rebound from a sharp and somewhat inexplicable correction that took place in late-April, despite strong earnings beats and outlooks from Lockheed Martin Corporation (NYSE:LMT), Northrop Grumman Corporation (NYSE:NOC), and General Dynamics Corporation (NYSE:GD).

Loser: Boeing Co (NYSE:BA)

Boeing Co (NYSE:BA) took a $20 billion hit to the chin from the Iran deal exit, as Treasury Secretary Steven Mnuchin announced that the aerospace giant’s license to sell $20 billion worth of jets to Iran had been revoked. Boeing signed a deal to supply 80 aircraft to Iran Air in December 2016 through the Joint Comprehensive Plan of Action, in addition to having a contract to supply 30 aircraft to Aseman Airlines. Boeing had not yet committed production slots for the Iran-bound jets according to CEO Dennis Muilenburg, so its 737 production will be unaffected by the lost contract. The same can’t be said about its future revenue however.

Follow Boeing Co (NYSE:BA)
Trade (NYSE:BA) Now!

Our flagship “Best Performing Hedge Funds Strategy” has offered investors a safe and lucrative option for their investing dollars over the last four years, returning 87.8% since its May 2014 inception, outperforming the SPY by nearly 25 percentage points during that time. This strategy, which invests in the consensus picks of the top 100 best performing hedge funds every quarter, is in the midst of one of its strongest quarters ever, delivering 7.6% returns while the SPY has actually declined by 0.9%. You can see our latest picks by trying our newsletters free of charge for 14 days.

On the next page we’ll look at several other winners and losers that will result from the Iran deal fallout.

Loading...