Elbit Systems Soars 7.88% on $2.3B Contract Surge: Is This the Start of a New Bull Run?

Summary
• Elbit Systems (ESLT) surges 7.88% intraday, trading at $510.32 amid a $2.3 billion international contract win.
• The stock opens at $516.03, hitting an intraday high of $517.0, with a 52-week high of $529.99 just 3% away.
• CEO Bezhalel Machlis highlights the contract as a 'recognition of unique technological capabilities.'
Elbit Systems' stock is in a frenzy, driven by a landmark $2.3 billion contract announcement. The defense tech giant's shares have surged over 7% in a single trading session, fueled by a multiyear strategic solution deal and a robust earnings backdrop. With a dynamic P/E ratio of 50.8 and a 52-week range of $243.18–$529.99, the stock is testing critical technical levels as investors weigh long-term implications.

Landmark $2.3B Contract Ignites Elbit Systems' Bull Run
Elbit Systems' 7.88% intraday surge is directly tied to its announcement of an $2.3 billion international contract for a strategic solution over eight years. The deal, described by CEO Bezhalel Machlis as a 'significant recognition of our unique technological capabilities,' underscores the company's growing global footprint. The contract adds to Elbit's $23.8 billion order backlog and aligns with rising defense spending amid geopolitical tensions. With the stock opening at $516.03 and trading near its 52-week high, the move reflects investor confidence in the company's ability to secure long-term revenue streams and execute on advanced defense solutions.

Aerospace & Defense Sector Gains Momentum as Elbit Outpaces Peers
The Aerospace & Defense sector is showing resilience amid global instability, with Elbit Systems outperforming its peers. While sector leader Lockheed Martin (LMT) trades flat with a -0.098% intraday decline, Elbit's 7.88% surge highlights its unique positioning in international defense contracts. Recent sector news, including France's $5 billion military space funding and Anduril's unmanned vessel partnerships, reinforces the sector's growth trajectory. Elbit's ability to secure multiyear, high-margin contracts positions it as a key beneficiary of the global defense boom.

Options Playbook: Leveraging Elbit's Volatility with Strategic Contracts
• MACD: -4.83 (Signal: -5.20, Histogram: 0.38) – Bearish crossover with a narrowing histogram suggests waning downward momentum.
• RSI: 41.92 – Oversold territory, indicating potential for a rebound.
• Bollinger Bands: Upper $495.31, Middle $478.61, Lower $461.90 – Price near upper band, signaling overbought conditions.
• 200-Day MA: $426.29 (below current price), 30-Day MA: $488.57 (near support).
Key levels to watch: 30-day support at $472.26 and 200-day resistance at $489.45. The RSI in oversold territory and MACD histogram contraction suggest a short-term bounce is likely. Aggressive bulls may consider ESLT20251121C520 (strike $520, expiration 11/21) for leveraged exposure. This call option offers a 162.27% leverage ratio and a 30.67% delta, ideal for capitalizing on a potential break above $520. A 5% upside to $535.84 would yield a payoff of $15.84 per contract. For a balanced approach, ESLT20251121C530 (strike $530, 185.88% leverage) provides higher gamma (0.01295) and implied volatility (37.89%), making it sensitive to price swings. A 5% move would generate a $5.84 payoff. Both contracts benefit from moderate theta decay (-1.69 and -1.45) and high liquidity, though volume remains thin. Position sizing should reflect the stock's volatility and proximity to key technical levels.

Backtest Elbit Systems Stock Performance
Below is the interactive event-study report you requested. Key setup notes: • “8 % surge” was defined as a ≥ 8 % close-to-close gain (daily percent change) for ESLT.O. • Analysis window: 2022-01-01 to 2025-11-17, 30 trading-day tracking horizon after each event. • Only two such surges occurred in the sample, so statistical power is limited and no results reach conventional significance levels.You can explore the full metrics and curves in the embedded module.Interpretation highlights: • The sample size (2 events) is too small for firm conclusions—treat insights as suggestive only. • Immediate (1-day) post-surge performance was positive (+2.59 %), but most subsequent horizons oscillate around zero with wide dispersion. • No systematic out- or under-performance vs. the benchmark was detected.If you’d like to 1) tighten/extend the tracking window, 2) incorporate intraday highs rather than close-to-close moves, or 3) back-test a trading strategy (enter on the surge, define specific exit rules), just let me know!

Elbit Systems at a Pivotal Crossroads: Act Now on a High-Conviction Trade
Elbit Systems' 7.88% surge on a $2.3 billion contract underscores its strategic value in a defense sector primed for growth. With RSI in oversold territory and MACD signaling a potential reversal, the stock is set for a near-term rebound. Investors should monitor the 30-day support at $472.26 and 200-day resistance at $489.45 for directional clues. The ESLT20251121C520 and ESLT20251121C530 options offer compelling leverage for a bullish breakout, while sector leader Lockheed Martin's -0.098% drift highlights Elbit's outperformance. A sustained close above $520 would validate the bullish case, making this a high-conviction trade for aggressive positioners.