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FTSE 250 defence firm QinetiQ (LSE: QQ) is down 16% from its 1 August 12-month traded high of £4.90. However, it is still up 25% from its 16 January one-year traded low of £3.29. And it has jumped 65% from its opening price on 24 February 2022 — the day Russia invaded Ukraine.
In my view, the drop since August is unsupported by recent results. I also think it is based on the false assumption that global security will improve in Donald Trump’s second presidency.
Consequently, now looks like a great opportunity to consider the stock for those investors whose portfolio it suits.
A false premise
It is true Trump has said he can end the Russia-Ukraine war in a day. It is also true that Israeli actions against Iran’s proxies have reduced Middle East hostilities.
However, it remains the case that the Russia-Ukraine war continues. And Syria looks to be a likely new focal point…
