Executive Mosaic’s GovCon Index climbed +1.28% to $4,547.66 as gainers outnumbered decliners. Wall Street mirrored Monday’s performance, with only the Dow Jones Industrial Average (+0.37%) advancing. The Nasdaq Composite (-1.35%) and S&P 500 (-0.47%) registered a fourth straight daily loss.
Breakout stocks
The GovCon Index made a turnaround Tuesday, aided by 22 advancers and only eight decliners. VVX (NYSE: VVX) popped +15.47% to $48.67 after reporting record revenue and net income in Q4 2024. BAE Systems and HII (NYSE: HII) outperformed with +5.67% and +3.95%, respectively. KBR (NYSE: KBR) and Palantir Technologies (Nasdaq: PLTR) plunged more than 3% to lead the underperformers.
V2X provides critical mission solutions and services to the defense sector. Shawn Mural, senior vice president and chief financial officer of V2X, said, “We closed the year with strong performance across all financial metrics, driven by double-digit topline growth and excellent cash generation.”
In the three months ending Dec. 31, 2024, V2X’s revenue rose 11% year-over-year to $1.16 billion, while net income reached $25 million versus the $492,000 net loss in Q4 2023. The adjusted net cash provided by operating activities increased 122% to $168.2 million from a year ago. Jeremy Wensinger, V2X president and CEO, said, “The leading indicators in our business remain strong with a $12.5 billion backlog, limited recompetes, and a robust pipeline of new opportunities.”
BAE Systems closed above its 200-day moving average of $65.94 for the second consecutive session. Investors are bullish on the British arms manufacturer. On Tuesday, U.K. Prime Minister Keir Starmer addressed parliament and pledged to spend an additional $16.9 billion annually from 2027 on defense.
Palantir Technologies continues to slide due to policy uncertainties and proposed defense budget cuts. The AI stock is on a five-day losing streak and has fallen to $87.84 per share from its all-time high of $124.62 recorded on Feb. 19.
Critical earnings release
Artificial intelligence king NVIDIA (Nasdaq: NVDA) will present its Q4 and full-year fiscal 2025 financial performance on Feb. 26. The report would also show the impact of Chinese startup DeepSeek on the American chipmaker. According to market analysts, the earnings results could be a tailwind or headwind for Wall Street.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,547.66 | 58.41 | 1.28% |
| Dow Jones Industrial Average | 43,621.16 | 159.95 | 0.37% |
| NASDAQ | 19,026.39 | -260.54 | -1.35% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| VVX | 48.67 | 6.62 | 15.74% |
| BAESY | 70.42 | 3.78 | 5.67% |
| HII | 175.48 | 6.67 | 3.95% |
| KTOS | 25.11 | 0.72 | 2.95% |
| MRCY | 43.5 | 1.11 | 2.62% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| NOC | 461.01 | 11.07 | 2.46% |
| LMT | 448.46 | 8.19 | 1.86% |
| HII | 175.48 | 6.67 | 3.95% |
| VVX | 48.67 | 6.62 | 15.74% |
| CACI | 332.26 | 5.09 | 1.56% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| KBR | 48.24 | -1.93 | -3.85% |
| PLTR | 87.84 | -2.84 | -3.13% |
| CG | 48.89 | -0.54 | -1.09% |
| J | 127.15 | -1.24 | -0.97% |
| FLR | 36.81 | -0.35 | -0.94% |
