Why These Defense Stocks Are Gaining This Week

4. General Dynamics Corporation (NYSE:GD)

Weekly Gains: 2.15%

General Dynamics Corporation (NYSE:GD) is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments.

On March 25, the company announced that it was awarded a $1 billion contract modification, allowing its Electric Boat business unit to purchase long-lead-time materials for the Virginia-class submarines. Here is what Mark Rayha, President of General Dynamics Corporation (NYSE:GD) Electric Boat, stated on the deal:

“This contract modification drives continuation of the crucial demand signal that the submarine industrial base needs to invest in the capacity and materials required to increase production volume. Consistent funding for the supply base is essential to achieve the high-rate production the Navy requires of the entire submarine enterprise.”

General Dynamics Corporation (NYSE:GD)’s shares are up 2.15% since Monday, primarily driven by the recent contract award. It is among the defense stocks that are gaining this week.