Electronic Systems Tech Stock (OTC: ELST)

Latest news for Electronic Systems Tech (OTC:ELST) Stock

Electronic Systems Tech

Electronic Systems Technology Inc is engaged in the development and manufacturing of digital data (non-voice) radio transceivers for use in industrial wireless networking applications. It designs, develops, manufactures, and markets industrial wireless products and accessories. The company's products provide communication solutions for applications underutilized by conventional, commercial-grade communication systems. It offers product lines in markets for process automation in commercial, industrial, and government arenas domestically as well as internationally.

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A new ETF will launch from Ark Invest covering the space sector launches Tuesday.

The fund’s initial holdings are out now and offer a glimpse into the new ETF&#39;s investment thesis. 

The First 39 Companies In Cathie Wood&#39;s Ark Invest Space ETF

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Elbit Systems Announces Settlement with Credit Suisse Group 

ELECTRONIC SYS TECHNOLOGY by Electronic Systems Technology, Inc.

Electronic Systems Technology Inc

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There&rsquo;s a general understanding among most financial analysts that defense companies provide significant portfolio stability during <a href="https://www.bloomberg.com/opinion/articles/2022-09-01/defense-stocks-are-more-than-a-recession-haven">recessions</a>. Indeed, these companies, especially defense companies with no commercial exposure, dip directly into the coffers of their countries&rsquo; governments. 



Thus, they are less subject to rising inflation costs and falling consumer spending. However, these bullish perceptions evaporate with significant changes in government, leading to overvalued <a href="https://investorplace.com/industries/industrial/defense/">defense stocks</a> to sell before election cycles.



This risk is especially pertinent when considering the upcoming Uinted States presidential and congressional elections in this November. The Democratic party holds the Senate and the presidency and has passed <a href="https://apnews.com/article/ukraine-aid-israel-tiktok-congress-a8910452e623413bf1da1e491d1d94ba">colossal defense spending bills for Ukraine and Israel</a>. 



Such generous spending has engorged several defense contractors who are part of a complicated web of government funding, spending and manufacturing. Therefore, investors should take a deeper look at the revenue streams of these three companies to determine if their valuations are justified.



<h2>RTX Corporation (RTX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/raytheon-_rtx_patriot_1600-300x169.png" alt="A German army mobile Raytheon (RTX) MIM-104 Patriot surface-to-air missile (SAM) system on display during the Laage airbase open house."><div>Source: VanderWolf Images / Shutterstock.com</div></div>A favorite among institutional investors, RTX Corporation (NYSE:<a href="https://investorplace.com/stock-quotes/rtx-stock-quote/">RTX</a>) has seen stunning returns since <a href="https://www.britannica.com/event/Israel-Hamas-War">conflict resurged in the Middle East</a>. A rebrand of Raytheon Technologies, RTX maintains distinct business units via its three subsidiaries, Collins Aerospace, Pratt &amp; Whitney and Raytheon. This results in a defense corporation whose revenue incomes are partially exposed to commercial market trends, but buffered by defense spending.



Bearing this in mind, RTX could take a stock value hit by the end of the year for two reasons. The first is the potential for a Republican-controlled Senate, which could <a href="https://thehill.com/homenews/senate/4619185-gop-critics-vow-no-more-us-aid-for-ukraine/">cut funding</a> for Ukraine. Furthermore, should Donald Trump secure another term, he openly intends to <a href="https://www.nytimes.com/2024/04/01/us/politics/trump-israel-conservative.html">end the wars</a> in Israel and Ukraine expediently.



<a href="https://www.rtx.com/news/news-center/2024/04/23/rtx-reports-q1-2024-results">Two of RTX&rsquo;s major programs</a> include $1.7 billion in Patriot missiles for NATO and Israel and $282 million for air defense systems for Ukraine.



This demonstrates that a change in government policy could cut deep into RTX&rsquo;s booked revenues and impact future performance.



<h2>Thales Group (THLLY)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/defense1600d-300x169.jpg" alt="8 Stellar Small-Cap Stocks to Buy That Are in Major Industries"><div>Source: Shutterstock</div></div>Late last year, the Thales Group (OTCMKTS:<a href="https://investorplace.com/stock-quotes/thlly-stock-quote/">THLLY</a>) found its Glasgow, Scotland-based factory under <a href="https://glasgowguardian.co.uk/2023/12/02/the-trial-of-the-thales-3/">attack by Palestinian activists</a>. The result was approximately 1.5 million British pounds of damages to factory equipment and machinery. While the damages did little to impact Thales&rsquo; bottom line, it underscores Thales&rsquo; involvement in weapons development with its Israeli partner, Elbit Systems (NASDAQ:<a href="https://investorplace.com/stock-quotes/eslt-stock-quote/">ESLT</a>). Together, the two companies co-develop the <a href="https://www.thalesgroup.com/en/countries/europe/united-kingdom/markets-we-operate/defence/air-systems-uk/isr-air/watchkeeper">Watchkeeper drone</a>, which has seen extensive use as a monitoring platform in places like Iraq and Afghanistan.



For Thales, this relationship is one of its many international partnerships that rely on spending from the United States. That&rsquo;s because Thales operates primarily as a European conglomerate and receives funding through American expenditures for supporting NATO and Israel. This structure could prove problematic after this year&rsquo;s election cycle for one major reason &mdash; a Trump presidency.



During Trump&rsquo;s first term, he openly worked toward <a href="https://www.cnn.com/2019/11/27/politics/trump-nato-contribution-nato/index.html">budget cuts to NATO spending</a>. Should he return to the presidency, this rhetoric could resume, impacting international defense companies like Thales.



<h2>Leonardo DRS (DRS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/defense1600c-300x169.jpg" alt=""><div>Source: Shutterstock</div></div>As a subsidiary of an international conglomerate, Leonardo DRS (NASDAQ:<a href="https://investorplace.com/stock-quotes/drs-stock-quote/">DRS</a>) faces the same potential political challenges as Thales. DRS has been a critical provider of onboard electronics for the F-35 and several U.S. military programs for decades. Up 47% in the last year, the stock has won major defense contracts that have extensively boosted growth.



Chief among these is its <a href="https://www.leonardodrs.com/news/press-releases/leonardo-drs-awarded-contracts-for-u-s-navys-columbia-class-submarine-program/">$3 billion contract</a> to support the electric propulsion systems of the U.S. Navy&rsquo;s new Columbia-class submarines. This contract will support 12 such ships for the next three decades. The project will be a priority as the Navy replaces its aging Ohio-class nuclear ballistic missile submarines.



However, the Navy tends to cut short such procurement programs. Take, for example, the cancellation of the <a href="https://nationalinterest.org/blog/buzz/zumwalt-class-stealth-destroyer-why-navy-had-cancel-it-208794">Zumwalt-class destroyers</a> and Seawolf submarines over the last 30 years. Thus, DRS could become one of those overvalued defense stocks to sell in the event of cost-cutting measures should the Columbia-class submarines prove too expensive.



On the date of publication, Viktor Zarev&nbsp;did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div>Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/04/3-overvalued-defense-stocks-to-sell-before-the-2024-election/">3 Overvalued Defense Stocks to Sell Before the 2024 Election</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Overvalued Defense Stocks to Sell Before the 2024 Election

Netanyahu's top political rival quits Israeli government

THLLY

A new ETF will <a href="https://www.benzinga.com/news/21/03/20375842/cathie-woods-ark-space-exploration-etf-to-begin-trading-on-tuesday">launch </a>from Ark Invest covering the space sector launches Tuesday.

The fund&rsquo;s initial holdings are out now and offer a glimpse into the new ETF&#39;s investment thesis.&nbsp;

Ark Space ETF: The highly anticipated Ark Space Exploration and Innovation ETF (NYSE:<a class="ticker" href="/stock/ARKX#NYSE">ARKX</a>) will debut. The ETF was filed by Ark Invest back in <a href="https://www.benzinga.com/news/21/01/19153038/cathie-wood-could-be-launching-a-space-exploration-etf">January</a>.

The ETF is actively managed and <a href="https://ark-funds.com/arkx">will hold</a> at least 80% of its assets in domestic and foreign companies that are engaged in the company&rsquo;s theme of space exploration and innovation.

Space exploration is defined as &ldquo;leading, enabling, or benefiting from technologically enabled products and/or services that occur beyond the surface of the Earth.&rdquo;

The ETF will hold between 40 and 55 holdings and comes with an expense ratio of 0.75%.

The Ark Space ETF&#39;s Holdings: Here&#39;s a look at the <a href="https://ark-funds.com/wp-content/fundsiteliterature/holdings/ARK_SPACE_EXPLORATION_&amp;_INNOVATION_ETF_ARKX_HOLDINGS.pdf">holdings </a>in the Ark Space Exploration and Innovation ETF as of March 26 by weighting in the ETF:

Trimble (NASDAQ:<a class="ticker" href="/stock/TRMB#NASDAQ">TRMB</a>): a company that provides GPS, laser and optical technologies that power industries like agriculture, architecture, engineering and construction.

The 3D Printing ETF (BATS:<a class="ticker" href="/stock/PRNT#BATS">PRNT</a>): an ETF from Ark Funds that invests in some of the largest names in the 3D&nbsp;printing space.

Kratos Defense and Security (NASDAQ:<a class="ticker" href="/stock/KTOS#NASDAQ">KTOS</a>): a national security company that is developing transformative technology and systems.

L3Harris Technologies Inc (NYSE:<a class="ticker" href="/stock/LHX#NYSE">LHX</a>): the company is a large defense contractor and also has divisions for communication infrastructure and avionics for the commercial aviation market.

JD.com (NASDAQ:<a class="ticker" href="/stock/JD#NASDAQ">JD</a>): China&rsquo;s second-largest e-commerce company.

Komatsu:&nbsp;the&nbsp;second-largest construction equipment manufacturer in the world covering construction, mining and utility equipment.

Lockheed Martin Corp (NYSE:<a class="ticker" href="/stock/LMT#NYSE">LMT</a>): the largest defense contractor in the world. It has business segments in aeronautics, mission systems, missiles and fire control and space systems.

Iridium Communications: (NASDAQ:<a class="ticker" href="/stock/IRDM#NASDAQ">IRDM</a>): a mobile voice and data communications company with a constellation of low earth-orbiting satellites.

Thales SA: a&nbsp;French aerospace and defense company that is one of Europe&rsquo;s largest defense contractors.

Boeing (NYSE:<a class="ticker" href="/stock/BA#NYSE">BA</a>): aerospace and defense firm that also has a large space and security segment.

NVIDIA Corp (NASDAQ:<a class="ticker" href="/stock/NVDA#NASDAQ">NVDA</a>): leading designer of graphics processing units.

Spirit AeroSystems Holdings Inc (NYSE:<a class="ticker" href="/stock/SPR#NYSE">SPR</a>): commercial aerospace designer and manufacturer of items such as fuselage systems, propulsion systems and wing systems.

Deere &amp; Co (NYSE:<a class="ticker" href="/stock/DE#NYSE">DE</a>): world&rsquo;s largest manufacturer of agricultural equipment.

Amazon.com (NASDAQ:<a class="ticker" href="/stock/AMZN#NASDAQ">AMZN</a>): one of the largest e-commerce companies in the world.

Teradyne Inc (NASDAQ:<a class="ticker" href="/stock/TER#NASDAQ">TER</a>): makes automatic test systems for use in several industries including aerospace and defense.

Alphabet Inc (NASDAQ:<a class="ticker" href="/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="/stock/GOOGL#NASDAQ">GOOGL</a>): parent company of Google, YouTube, Verily, Waymo and other segments and&nbsp;one of largest technology companies in the world.

Dassault Systems:&nbsp;a provider of computer-assisted design and product software for industries that include aerospace and defense.

Teledyne Technologies (NYSE:<a class="ticker" href="/stock/TDY#NYSE">TDY</a>): a government contractor that operates in four segments of instrumentation, digital imaging, aerospace and defense electronics and engineered systems.

Garmin (NASDAQ:<a class="ticker" href="/stock/GRMN#NASDAQ">GRMN</a>): offers GPS hardware and software for the fitness, outdoors, auto, aviation and marine industries.

Virgin Galactic Holdings (NYSE:<a class="ticker" href="/stock/SPCE#NYSE">SPCE</a>): the company is developing a passenger flight service to space.

Raven Industries (NASDAQ:<a class="ticker" href="/stock/RAVN#NASDAQ">RAVN</a>): operates in applied technology, engineered films and Aerostar divisions serving agricultural, construction, aerospace, defense and other markets.

Airbus: one of largest aerospace and defense companies in the world.

AeroVironment (NASDAQ:<a class="ticker" href="/stock/AVAV#NASDAQ">AVAV</a>): an unmanned aircraft systems, tactical missile systems and satellite company serving the U.S. government and international governments.

Alibaba Group Holding (NYSE:<a class="ticker" href="/stock/BABA#NYSE">BABA</a>): the world&rsquo;s largest online and mobile commerce company and one of the largest Chinese companies.

Elbit Systems (NASDAQ:<a class="ticker" href="/stock/ELST#NASDAQ">ELST</a>): produces products for defense, homeland security and commercial flight companies.

Netflix Inc (NASDAQ:<a class="ticker" href="/stock/NFLX#NASDAQ">NFLX</a>): streaming company operating in the U.S. and international markets with over 20 million subscribers domestically.

Heico Corp (NYSE:<a class="ticker" href="/stock/HEI#NYSE">HEI</a>): an aerospace and defense supplier.

Honeywell International (NYSE:<a class="ticker" href="/stock/HON#NYSE">HON</a>): it operates with four business segments including aerospace, building technologies, performance materials and safety and productivity.

Workhorse Group (NASDAQ:<a class="ticker" href="/stock/WKHS#NASDAQ">WKHS</a>): an electric vehicle company that also has a drone business seeking FAA certification.

Taiwan Semiconductor Manufacturing (NYSE:<a class="ticker" href="/stock/TSM#NYSE">TSM</a>): one of world&rsquo;s largest semiconductor companies.

Tencent Holdings: one of largest companies in the world covering internet services and gaming holdings.

Ansys Inc (NASDAQ:<a class="ticker" href="/stock/ANSS#NASDAQ">ANSS</a>): engineering software company that provides simulation capabilities for more than 50,000 customers globally including the aerospace and defense sectors.

Synopsys Inc (NASDAQ:<a class="ticker" href="/stock/SNPS#NASDAQ">SNPS</a>): it designs automation software for companies in the semiconductor sector.

Xilinx Inc (NASDAQ:<a class="ticker" href="/stock/XLNX#NASDAQ">XLNX</a>): a leader in the field-programmable gate array circuit market that designs and sells chips to third party companies.

Meituan: a&nbsp;Chinese company offering shopping and retail services for customers.

Autodesk Inc (NASDAQ:<a class="ticker" href="/stock/ADSK#NASDAQ">ADSK</a>): an&nbsp;application software company helping customers in industries like manufacturing, engineering and construction.

Atlas Crest Investment Corp (NYSE:<a class="ticker" href="/stock/ACIC#NYSE">ACIC</a>): a SPAC taking Archer, an eVTOL company, public.

Reinvent Technology Partners (NYSE:<a class="ticker" href="/stock/RTP#NYSE">RTP</a>): a SPAC taking Joby Aviation, an eVTOL company, public.

Not Just A Space ETF: The holdings in the ETF could change by Tuesday when the fund is launched.

The current holdings show that the fund will not only own pure play space companies, but also companies that could benefit from growing connectivity around the world.

Many of the names in the ETF are &mdash; like Netflix, Alibaba and Amazon. It is also surprising to see an existing 3D&nbsp;printing ETF make up the second-largest holding rather than individual 3D&nbsp;printing stocks.

As an actively managed ETF, the holdings could change over the coming days. Several pure play space companies going public via SPAC appear to be omitted from&nbsp;the space ETF.

Photo courtesy of Nvidia.&nbsp;

The First 39 Companies In Cathie Wood's Ark Invest Space ETF

Elbit Systems Ltd. (NASDAQ: <a class="ticker" href="/stock/eslt#NASDAQ">ESLT</a>) ("Elbit Systems") announced the settlement of the lawsuit against Credit Suisse Group (NYSE: <a class="ticker" href="/stock/cs#NYSE">CS</a>) that was described in Item 8 - Financial Information - Legal Proceedings, in Elbit Systems' Form 20-F for fiscal year 2012.

Pursuant to the settlement, Elbit Systems will withdraw its lawsuit in return for the payment of an undisclosed amount.

About Elbit Systems

Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned aircraft systems ("UAS"), advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios.&nbsp;The Company also focuses on the upgrading of existing military platforms, developing new technologies for defense, homeland security and commercial aviation applications and providing a range of support services.

For additional information, please visit: http://www.elbitsystems.com.

This press release contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended) regarding
 
 <a href="http://www.benzinga.com/pressreleases/13/05/n3631896/elbit-systems-settles-lawsuit-against-credit-suisse-group">See full press release</a>

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