PPA: Boeing's Cash Problem And Lockheed's F-35 Delays (Rating Downgrade)
Summary
- Invesco Aerospace & Defense ETF warrants a rating downgrade to a hold due to safety issues facing Boeing and Lockheed Martin's F-35 program delays.
- PPA has slightly underperformed the S&P 500 Index since February but continues to outperform peer defense ETFs.
- While the defense budget will likely remain high in the short term, higher spending as a percentage of GDP increases the likelihood of spending cuts in the long run.
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