The iShares U.S. Aerospace & Defense ETF (ITA) rose to $154.59, up 1.12% as of 10:14 AM ET on November 26th. The aerospace and defense sector is experiencing a boost, partly due to Woodward's impressive financial performance. Woodward, a key player in defense parts and energy control systems, reported record results for 2024, with a 45% increase in earnings and a 14% rise in sales. The company also raised its guidance for 2025, expecting continued growth in aerospace revenue and margin expansion. This positive outlook is contributing to the sector's upward momentum.
Additionally, the potential return of Donald Trump to the White House is seen as a positive factor for U.S. defense stocks. Analysts at Bernstein suggest that Trump's focus on nuclear deterrence, missile defense, and space capabilities could benefit defense contractors. Despite concerns about potential spending cuts, the increase in export demand is viewed as a positive development for the industry.