(Finance) – Lively session today for Leonardo, which also today boasts an increase of 2.98%, confirming itself as one of the best stocks in this first part of the year. As one financial year closes and another begins, there appears to be a sector rotation underway, which appears to favor defense stocks.
With the first three sessions of 2024, Leonardo has already gained 6.5%, after almost doubling its value during the previous financial year. The performance of the stock compared to FTSE MIB, is stronger both on a weekly basis (-0.47% performance of the stock market index). The short trend of Leonardo it is strengthening with a resistance area seen at 16.05 Euros, while the most immediate support can be seen at 15.64. A continuation of the upward trend towards 16.46 is expected.
The excellent performance of the industrial sector in Europe and particularly of Defense stocks, which also benefit from the open conflicts in Eastern Europe and on the outskirts of the Middle East, contribute to supporting the stock.
Meanwhile, CEO Roberto Cingolani, in an interview with the Financial Times, called for greater collaboration between European companies active in the defense sector, explaining that the fragmentation of investments damages the EU on a competitive level in the global scenario. For the manager it would be necessary to “build a critical mass in Europe and lay the foundations for continental defense centers”.