Core Viewpoint - Elbit Systems (ESLT.US) shares rose by 3.5% to $521.75 following the announcement of a $210 million contract with the Israeli Ministry of Defense for upgrading Merkava main battle tanks. Additionally, JPMorgan raised the company's target price from $520 to $530 [1]. Group 1: Financial Performance - Pre-market price increased by 3.51% to $521.75 [2]. - The closing price on November 18 was $504.05, with a price increase of $17.70 [2]. - The stock reached a high of $523.00 and a low of $489.99 during the trading session [2]. Group 2: Market Metrics - The total market capitalization of Elbit Systems is approximately $23.375 billion [2]. - The price-to-earnings (P/E) ratio is reported at 51.17, with a trailing P/E ratio of 70.20 [2]. - The stock has a dividend yield of 0.44% and a dividend of $2.20 [2]. Group 3: Trading Volume and Price Range - The trading volume was 204,800 shares, with a turnover of $104 million [2]. - The stock has a 52-week high of $529.223 and a low of $241.649 [2]. - The average price during the session was $507.272, with a price fluctuation of 6.56% [2].

Investment Rating - The report maintains an "Overweight" rating for the defense and military industry, indicating an expectation for the industry to outperform the overall market [7][31]. Core Insights - The defense and military industry is expected to experience robust growth in the coming years, driven by a clear upward trend in fundamentals and increased military spending due to geopolitical factors [7]. - The report highlights that the industry is entering a phase of accelerated mechanization and informatization as it approaches the centenary of the military, with a focus on quality and quantity improvements [7]. - The impact of tariff conflicts is viewed positively for the military industry, as it emphasizes the comparative advantages of domestic demand and is expected to accelerate investment in the sector [7]. - New forms of combat capabilities, including AI and robotics, are anticipated to become key growth drivers for the industry, creating new investment opportunities [7]. - The construction of remote sensing constellations and the upcoming aerospace conference are expected to boost the sector's performance [7]. Market Review - Last week, the Shenwan Defense and Military Index fell by 2.55%, while the overall market indices showed mixed results, with the Shanghai Composite Index rising by 1.19% [3][8]. - The report notes that the defense and military sector's performance ranked last among 31 primary industry categories [8]. - The top five performing stocks in the defense and military sector last week included Beimo Gaoke (up 11.94%), Taihe New Materials (up 9.38%), and others, while the worst performers included Zhenhua Technology (down 16.23%) and Hongyuan Electronics (down 13.17%) [8][16][17]. Valuation Changes - The current PE-TTM for the defense and military sector is 68.10, indicating it is in the upper range historically, with a valuation percentile of 54.04% since January 2014 [17]. - The report identifies a slight differentiation in valuations among sub-sectors, with aerospace and aviation equipment showing relatively high PE valuations since 2020 [17][22]. Key Investment Targets - The report suggests increasing attention on high-end combat capabilities and new combat capabilities, with specific stocks highlighted for potential investment [7][24]. - Notable stocks include Feiliwa, Tianqin Equipment, and others in the high-end combat category, as well as Chengdu Huami and Huaying Technology in the new combat capabilities category [7][24].