Hexcel (NYSE:HXL) Bolsa

HEXCEL CORP

Hexcel

Founded in 1948, Hexcel designs and manufactures a range of highly engineered composite fibers, fabrics, resins, and structures for use in the commercial aerospace, defense, and high-performance automotive markets. These are lighter than metal and perform under rigorous conditions in aircraft frames, wings, engines, and other components and subassemblies. The company's name derives from the six-sided honeycomb structures that lend many of its products their light weight and rigidity. Hexcel's biggest customers are Airbus (38% of 2022 sales) and Boeing (25% of prepandemic sales) and their respective subcontractors.

Hexcel Corp

HeliosX Lithium & Technologies Corp

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ATRO

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AXON

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CDRE

Embraer-Empresa Brasileira De Aeronautica

ESLT

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MRCY

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SPAI

SPCE

Shares of aerospace and defense companies are trading higher following President Trump's decision to implement a 90-day pause on reciprocal tariffs for all countries except China.

Wells Fargo analyst Matthew Akers maintains Hexcel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>) with a Overweight and lowers the price target from $87 to $63.

News

Price Target

Analyst Ratings

Wells Fargo Maintains Overweight on Hexcel, Lowers Price Target to $63

Barclays analyst David Strauss maintains Hexcel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>) with a Equal-Weight and lowers the price target from $75 to $68.

Barclays Maintains Equal-Weight on Hexcel, Lowers Price Target to $68

Truist Securities analyst Michael Ciarmoli maintains Hexcel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>) with a Buy and lowers the price target from $85 to $80.

Truist Securities Maintains Buy on Hexcel, Lowers Price Target to $80

In the current market session, Hexcel Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>) price is at $59.35, after a 0.39% increase. However, over the past month, the stock decreased by 7.53%, and in the past year, by 19.66%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session. 

<img src="https://www.benzinga.com/files/images/story/2025/1743098424_0.png" alt="Past Year Chart" />

<h3>Hexcel P/E Compared to Competitors</h3>
The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E could indicate that shareholders do not expect the stock to perform better in the future or it could mean that the company is undervalued. 
Compared to the aggregate P/E ratio of the 199.9 in the Aerospace &amp; Defense industry, Hexcel Inc. has a lower P/E ratio of 37.18. Shareholders might be inclined to think that the stock might perform worse than it's industry peers. It's also possible that the stock is undervalued. 

<img src="https://www.benzinga.com/files/images/story/2025/1743098424_1.png" alt="Guage" />

In summary, while the price-to-earnings ratio is a valuable tool for investors to evaluate a company's market performance, it should be used with caution. A low P/E ratio can be an indication of undervaluation, but it can also suggest weak growth prospects or financial instability. Moreover, the P/E ratio is just one of many metrics that investors should consider when making investment decisions, and it should be evaluated alongside other financial ratios, industry trends, and qualitative factors. By taking a comprehensive approach to analyzing a company's financial health, investors can make well-informed decisions that are more likely to lead to successful outcomes.

Intraday Update

Markets

Price Over Earnings Overview: Hexcel

Hexcel Prices Offering Of $300M Of Unsecured 5.875% Senior Notes Due 2035

RBC Capital analyst Ken Herbert maintains Hexcel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>) with a Outperform and raises the price target from $74 to $82.

RBC Capital Maintains Outperform on Hexcel, Raises Price Target to $82

Truist Securities analyst Michael Ciarmoli maintains Hexcel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>) with a Buy and raises the price target from $76 to $85.

Truist Securities Maintains Buy on Hexcel, Raises Price Target to $85

Wells Fargo analyst Matthew Akers maintains Hexcel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>) with a Overweight and raises the price target from $81 to $87.

Wells Fargo Maintains Overweight on Hexcel, Raises Price Target to $87

Hexcel shares are trading lower after the company issued FY25 adjusted EPS guidance below estimates.

The Q4 earnings report for Hexcel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>) was released on Wednesday, January 22, 2025 at 04:15 PM.
Here's what investors need to know about the latest announcement.
<h3>Earnings</h3>
Hexcel missed estimated earnings by 0.0%, reporting an EPS of $0.52 versus an estimate of $0.52.
Revenue was up $16.30 million from the same period last year.
<h3>Historical Earnings Summary</h3>
During the previous quarter, the company beat on EPS by $0.01, leading to a 1.0% increase share price change the next day.
Here's a look at Hexcel's past performance:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2024</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.46</td>
<td>0.56</td>
<td>0.41</td>
<td>0.49</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.47</td>
<td>0.60</td>
<td>0.44</td>
<td>0.43</td>
</tr>
<tr>
<td>Revenue Estimate</td>
<td>456.90M</td>
<td>483.36M</td>
<td>473.78M</td>
<td>471.69M</td>
</tr>
<tr>
<td>Revenue Actual</td>
<td>456.50M</td>
<td>500.40M</td>
<td>472.30M</td>
<td>457.50M</td>
</tr>
</tbody>
</table>

To track all earnings releases for Hexcel <a href="https://www.benzinga.com/quote/HXL/earnings">visit their earnings calendar here.</a> 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings

Insights into Hexcel Q4 Earnings

Guidance

Hexcel Expects FY25 Sales Of $1.95B - $2.05B (Est $2.019B), Adjusted EPS Of $2.05 - $2.25 (Est $2.30)

Hexcel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>) released its Q4 earnings on Wednesday, January 22, 2025 at 04:15 PM.
Here's what's important from the earnings announcement.
<h3>Earnings</h3>
Hexcel missed estimated earnings by 0.0%, reporting an EPS of $0.52 versus an estimate of $0.52.
Revenue was up $16.30 million from the same period last year.
<h3>Performance in Previous Earnings</h3>
The company beat on EPS by $0.01 in the last quarter, resulting in a 1.0% increase share price change the following day.
Here's a look at Hexcel's past performance:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2024</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.46</td>
<td>0.56</td>
<td>0.41</td>
<td>0.49</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.47</td>
<td>0.60</td>
<td>0.44</td>
<td>0.43</td>
</tr>
<tr>
<td>Revenue Estimate</td>
<td>456.90M</td>
<td>483.36M</td>
<td>473.78M</td>
<td>471.69M</td>
</tr>
<tr>
<td>Revenue Actual</td>
<td>456.50M</td>
<td>500.40M</td>
<td>472.30M</td>
<td>457.50M</td>
</tr>
</tbody>
</table>

To track all earnings releases for Hexcel <a href="https://www.benzinga.com/quote/HXL/earnings">visit their earnings calendar here.</a> 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Hexcel Earnings Report: Q4 Overview

Hexcel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>) just disclosed its Q4 earnings on Wednesday, January 22, 2025 at 04:15 PM.
Here's a brief overview of the earnings report.
<h3>Earnings</h3>
Hexcel missed estimated earnings by 0.0%, reporting an EPS of $0.52 versus an estimate of $0.52.
Revenue was up $16.30 million from the same period last year.
<h3>Historical Earnings Summary</h3>
During the previous quarter, the company beat on EPS by $0.01, leading to a 1.0% increase share price change the next day.
Here's a look at Hexcel's past performance:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2024</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.46</td>
<td>0.56</td>
<td>0.41</td>
<td>0.49</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.47</td>
<td>0.60</td>
<td>0.44</td>
<td>0.43</td>
</tr>
<tr>
<td>Revenue Estimate</td>
<td>456.90M</td>
<td>483.36M</td>
<td>473.78M</td>
<td>471.69M</td>
</tr>
<tr>
<td>Revenue Actual</td>
<td>456.50M</td>
<td>500.40M</td>
<td>472.30M</td>
<td>457.50M</td>
</tr>
</tbody>
</table>

To track all earnings releases for Hexcel <a href="https://www.benzinga.com/quote/HXL/earnings">visit their earnings calendar here.</a> 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings Breakdown: Hexcel Q4

The earnings results for Hexcel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>) for Q4 were made public on Wednesday, January 22, 2025 at 04:15 PM.
Here's a comprehensive overview of the announcement.
<h3>Earnings</h3>
Hexcel missed estimated earnings by 0.0%, reporting an EPS of $0.52 versus an estimate of $0.52.
Revenue was up $16.30 million from the same period last year.
<h3>Analysis of Past Earnings</h3>
The company beat on EPS by $0.01 in the previous quarter, leading to a 1.0% increase share price change the next day.
Here's a look at Hexcel's past performance:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2024</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.46</td>
<td>0.56</td>
<td>0.41</td>
<td>0.49</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.47</td>
<td>0.60</td>
<td>0.44</td>
<td>0.43</td>
</tr>
<tr>
<td>Revenue Estimate</td>
<td>456.90M</td>
<td>483.36M</td>
<td>473.78M</td>
<td>471.69M</td>
</tr>
<tr>
<td>Revenue Actual</td>
<td>456.50M</td>
<td>500.40M</td>
<td>472.30M</td>
<td>457.50M</td>
</tr>
</tbody>
</table>

To track all earnings releases for Hexcel <a href="https://www.benzinga.com/quote/HXL/earnings">visit their earnings calendar here.</a> 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Hexcel: Q4 Earnings Insights

Hexcel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>) reported quarterly earnings of $0.52 per share which beat the analyst consensus estimate of $0.50 by 4 percent. This is a 20.93 percent increase over earnings of $0.43 per share from the same period last year. The company reported quarterly sales of $473.80 million which beat the analyst consensus estimate of $473.23 million by 0.12 percent. This is a 3.56 percent increase over sales of $457.50 million the same period last year.

Earnings Beats

Hexcel Q4 2024 Adj EPS $0.52 Beats $0.50 Estimate, Sales $473.80M Beat $473.23M Estimate

<h3>Companies Reporting Before The Bell</h3>
• HDFC Bank (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HDB#NYSE">HDB</a>) is projected to report quarterly earnings at $0.49 per share on revenue of $422.93 billion. 
• Travelers Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) is likely to report quarterly earnings at $6.61 per share on revenue of $10.80 billion. 
• Procter &amp; Gamble (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) is projected to report quarterly earnings at $1.86 per share on revenue of $21.59 billion. 
• Comerica (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>) is projected to report quarterly earnings at $1.26 per share on revenue of $837.57 million. 
• GE Vernova (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) is expected to report quarterly earnings at $2.37 per share on revenue of $10.70 billion. 
• Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) is likely to report quarterly earnings at $2.02 per share on revenue of $22.45 billion. 
• Textron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TXT#NYSE">TXT</a>) is likely to report quarterly earnings at $1.28 per share on revenue of $3.27 billion. 
• Teledyne Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDY#NYSE">TDY</a>) is projected to report quarterly earnings at $5.23 per share on revenue of $1.45 billion. 
• TE Connectivity (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TEL#NYSE">TEL</a>) is projected to report quarterly earnings at $1.89 per share on revenue of $3.91 billion. 
• OFG Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OFG#NYSE">OFG</a>) is projected to report quarterly earnings at $0.96 per share on revenue of $176.15 million. 
• F N B (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FNB#NYSE">FNB</a>) is likely to report quarterly earnings at $0.33 per share on revenue of $408.00 million. 
• LG Display Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPL#NYSE">LPL</a>) is projected to report quarterly earnings at $0.01 per share on revenue of $5.87 billion. 
• HBT Finl (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HBT#NASDAQ">HBT</a>) is likely to report quarterly earnings at $0.58 per share on revenue of $57.48 million. 
• Halliburton (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>) is estimated to report quarterly earnings at $0.70 per share on revenue of $5.63 billion. 
• BankUnited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKU#NYSE">BKU</a>) is projected to report quarterly earnings at $0.72 per share on revenue of $261.25 million. 
• United Community Banks (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCB#NYSE">UCB</a>) is likely to report earnings for its fourth quarter. 
• Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>) is projected to report quarterly earnings at $1.34 per share on revenue of $11.04 billion. 
• Commerce Bancshares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CBSH#NASDAQ">CBSH</a>) is projected to report quarterly earnings at $0.89 per share on revenue of $417.18 million. 
• Ally Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>) is expected to report quarterly earnings at $0.64 per share on revenue of $2.01 billion. 
• Amphenol (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APH#NYSE">APH</a>) is expected to report quarterly earnings at $0.50 per share on revenue of $4.06 billion. 
<h3>Companies Reporting After The Bell</h3>
• Triumph Financial (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TFIN#NASDAQ">TFIN</a>) is likely to report quarterly earnings at $0.25 per share on revenue of $108.44 million. 
• Steel Dynamics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>) is projected to report quarterly earnings at $1.63 per share on revenue of $3.98 billion. 
• Origin Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OBK#NYSE">OBK</a>) is likely to report quarterly earnings at $0.52 per share on revenue of $87.75 million. 
• Old Second Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OSBC#NASDAQ">OSBC</a>) is likely to report quarterly earnings at $0.48 per share on revenue of $59.62 million. 
• Wesbanco (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WSBC#NASDAQ">WSBC</a>) is estimated to report quarterly earnings at $0.55 per share on revenue of $156.42 million. 
• First Internet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INBK#NASDAQ">INBK</a>) is expected to report quarterly earnings at $0.91 per share on revenue of $24.88 million. 
• NVE (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVEC#NASDAQ">NVEC</a>) is estimated to report earnings for its third quarter. 
• Univest Financial (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UVSP#NASDAQ">UVSP</a>) is expected to report quarterly earnings at $0.57 per share on revenue of $73.45 million. 
• SL Green Realty (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLG#NYSE">SLG</a>) is likely to report quarterly earnings at $1.53 per share on revenue of $156.30 million. 
• Cohen &amp; Steers (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNS#NYSE">CNS</a>) is projected to report quarterly earnings at $0.81 per share on revenue of $140.72 million. 
• Kinder Morgan (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>) is expected to report quarterly earnings at $0.33 per share on revenue of $4.13 billion. 
• Knight-Swift (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KNX#NYSE">KNX</a>) is projected to report quarterly earnings at $0.33 per share on revenue of $1.88 billion. 
• Equity Bancshares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQBK#NYSE">EQBK</a>) is estimated to report quarterly earnings at $0.91 per share on revenue of $55.96 million. 
• RLI (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RLI#NYSE">RLI</a>) is expected to report quarterly earnings at $1.04 per share on revenue of $435.02 million. 
• CACI International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CACI#NYSE">CACI</a>) is expected to report quarterly earnings at $5.23 per share on revenue of $2.02 billion. 
• Eagle Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EGBN#NASDAQ">EGBN</a>) is estimated to report quarterly earnings at $0.49 per share on revenue of $74.67 million. 
• Hexcel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>) is estimated to report quarterly earnings at $0.53 per share on revenue of $480.50 million. 
• National Bank Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NBHC#NYSE">NBHC</a>) is likely to report quarterly earnings at $0.79 per share on revenue of $107.38 million. 
• QCR Hldgs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCRH#NASDAQ">QCRH</a>) is projected to report quarterly earnings at $1.73 per share on revenue of $96.56 million. 
• Cathay General (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CATY#NASDAQ">CATY</a>) is projected to report quarterly earnings at $1.09 per share on revenue of $185.11 million. 
• Bankwell Finl Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BWFG#NASDAQ">BWFG</a>) is projected to report quarterly earnings at $0.65 per share on revenue of $22.12 million. 
• Third Coast Bancshares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCBX#NASDAQ">TCBX</a>) is estimated to report quarterly earnings at $0.53 per share on revenue of $41.96 million. 
• Plexus (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLXS#NASDAQ">PLXS</a>) is projected to report quarterly earnings at $1.55 per share on revenue of $980.53 million. 
• Live Oak Bancshares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOB#NYSE">LOB</a>) is expected to report quarterly earnings at $0.54 per share on revenue of $131.10 million. 
• Amerant Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMTB#NYSE">AMTB</a>) is expected to report quarterly earnings at $0.36 per share on revenue of $100.68 million. 
• Horizon Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HBNC#NASDAQ">HBNC</a>) is likely to report quarterly earnings at $0.37 per share on revenue of $62.78 million. 
• Cadence Bank (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CADE#NYSE">CADE</a>) is expected to report quarterly earnings at $0.68 per share on revenue of $457.77 million. 
• Colony Bankcorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CBAN#NYSE">CBAN</a>) is projected to report quarterly earnings at $0.34 per share on revenue of $28.90 million. 
• Banner (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BANR#NASDAQ">BANR</a>) is estimated to report quarterly earnings at $1.21 per share on revenue of $156.09 million. 
• Alcoa (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>) is projected to report quarterly earnings at $0.91 per share on revenue of $3.29 billion. 
• Discover Finl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) is estimated to report quarterly earnings at $3.26 per share on revenue of $4.39 billion. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

ALLY

AMTB

BANR

BWFG

CACI

CADE

CATY

CBAN

CBSH

EGBN

EQBK

HBNC

INBK

NBHC

NVEC

OSBC

PLXS

QCRH

STLD

TCBX

TFIN

UVSP

WSBC

Earnings Scheduled For January 22, 2025

The launch of the U.S. Global Technology and Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WAR#NYSE">WAR</a>) on Dec. 30, 2024, and its subsequent debut on the New York Stock Exchange, is another feather in the cap for U.S. Global Investors Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GROW#NASDAQ">GROW</a>) extensive suite of ETFs targeting specific sectors. The fund aims to bring investors into the areas of advanced technology, defense and aerospace with an expense ratio of 0.6%.
The ETF holds total net assets of $1 million, per the company&#8217;s fact sheet, and rebalances quarterly. Holdings are split, with the following 10 holdings equally representing seven percent each of the fund: Applied Materials (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>), Booz Allen Hamilton Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAH#NYSE">BAH</a>), General Dynamics Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>), Hexcel Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HXL#NYSE">HXL</a>), Leidos Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LDOS#NYSE">LDOS</a>), and NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>). Other notable holdings include Rheinmetall AG, Cohort plc, Cognyte Software and F5, each constituting 4% of the portfolio.
A general breakdown of the ETF holdings looks like this: data centers, homeland protection, aerospace and defense, cybersecurity, and semiconductor. All these sectors are interconnected in today&#8217;s global economy.
Interestingly, <a href="https://www.usglobaletfs.com/app/uploads/2024/12/WAR-Factsheet.pdf">28%</a> of the ETF's technology sector exposure will consist of semiconductor stocks. This is important as the chip industry has been in the spotlight for a while now for its lucrative outlook. According to a recent <a href="https://www.pwc.com/gx/en/industries/technology/state-of-the-semicon-industry.html">PwC report</a>, global semiconductor revenues are anticipated to grow "more than twice as fast as global GDP, reaching over $1 trillion by 2030." Thus, a larger exposure in this area makes sense.
Also, another 28% of the fund's overall holdings will go to Cybersecurity, an area that needs intense R&amp;D and consistent advancements to tackle the growing sophistication of global cybercrimes, including cyberespionage, a major headache for governments.
The stocks included in this actively managed fund will be chosen subject to some quantitative and fundamental parameters. Also, there is a possibility for the fund to invest in foreign companies and emerging markets. The fund prospectus currently states that its exposure to companies in the U.S. is 83%, U.K. is 7%, Germany is 7%, France 3% and Norway 3%.
The ETF issuer has a note of warning to investors in its press release: "The fund's concentration in the securities of a particular industry namely Aerospace and Defense, Cybersecurity and Semi-conductor industries as well as geographic concentration may cause it to be more susceptible to greater fluctuations in share price and volatility due to adverse events that affect the Fund's investments."
Nonetheless, the defense industry presents a significant investment opportunity due to various global factors. 
Russia&#8217;s invasion of Ukraine, tensions with China and heightened military spending especially in Europe due to the almost doubling of arms imports between 2019 and 2023 will require high levels of defense spending. 
Advanced technologies in warfare are transforming war; countries are heavily investing in AI, hypersonic missiles, and autonomous weapons, with the example being China. 
As detailed by U.S. Global ETFs, cyber threats are also rising, with a 75% increase in global cyberattacks and leading to high investments in cyber security infrastructure. Bipartisan U.S. defense spending and increases in NATO military spending add weight to the potential growth of this sector. Another reason for European defense system modernization and the reduction of U.S. reliance on their systems is to grow more independent.
Read Next: • <a href="https://www.benzinga.com/content/42720025/these-3-quirky-etfs-may-be-strong-plays-in-2025">These 3 Quirky ETFs May Be Strong Plays in 2025</a>
Photo: Courtesy General Dynamics

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