Why Shares of General Dynamics Climbed in May
Shares of General Dynamics (NYSE: GD) gained 12.4% in May, according to data provided by S&P Global Market Intelligence, as investors warmed to defense contractors as a relative safe haven in a volatile market. General Dynamics also made progress in securing a lucrative submarine contract.
It's been a wild year for General Dynamics holders, with the shares falling more than 40% from mid-February to mid-March, along with the broader markets, as the full impact of the COVID-19 pandemic became more apparent.
General Dynamics is primarily a defense contractor and most of its operations were not impacted by the stay-at-home orders, but the company still faced some supply-chain disruptions. General Dynamics also owns Gulfstream, and investors were concerned business jet orders were likely to be impacted if the economy falls into a recession.
Source Fool.com
