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Boeing (BA) Wins $189M Deal to Support F-15 Jet Program
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The Boeing Company (BA - Free Report) recently clinched a modification contract to conduct low-rate initial production (LRIP) of F-15 Eagle Passive Active Warning and Survivability System (EPAWSS). Work related to the deal is scheduled to be completed by Dec 31, 2026.
Valued at $189.3 million, the contract has been awarded by the Air Force Lifecycle Management Center, Wright-Patterson Air Force Base, OH. Per the terms, Boeing will acquire Group A and B kits, support equipment, mod line standup, technical orders and interim contractor support efforts for the LRIP of the EPAWSS systems, which will be installed on existing F-15 aircraft.
Rising Demand for Military Jets & Surveillance
With rising security threats across the globe, emerging economies like Asia Pacific, the Middle East and South America are spending rapidly to enhance their defense arsenals. On the other hand, developed nations like the United States and Europe have already been leading the defense market.
It is imperative to mention in this context that military aircraft, both manned and unmanned, forms an integral part of a country’s defense products. Notably, emerging trends in the combat aircraft space like fifth-generation technology aircraft, advanced composite materials, and stealth technology have been driving demand for military jets substantially.
Now along with the growing need for military jets across the globe, state-of-the art surveillance systems are also in high demand. Notably, BAE Systems’ (BAESY - Free Report) EPAWSS offers fully integrated radar warning, geo-location, situational awareness, and self-protection solutions to detect and defeat surface and airborne threats in signal-dense contested and highly contested environments.
What’s Favoring Boeing?
The global military jet market is expanding manifold, with North America leading this space. Boeing, being the largest jet maker in the United States enjoys a dominant position. The company thus enjoys frequent flow of contracts for military jets and its associated upgrades. The latest contract win is a bright example of that.
These contract wins are providing a significant boost to the company’s defense business. Evidently, in third-quarter 2020, its defense segment — Boeing Defense, Space & Security (BDS) — recorded revenues worth $6.85 billion, reflecting year-over-year growth, amid the challenges offered by the COVID-19 crisis.
Prospects of Other Jet Manufacturers
Per a report by Fortune Business Insights, the global military aircraft market is expected to witness a CAGR of 3.1% to reach a value of $58.03 billion by 2026 from 2018. Since North America continues to dominate this market, jet makers in this nation like Boeing, Lockheed Martin (LMT - Free Report) and Northrop Grumman (NOC - Free Report) are expected to benefit in terms of steady order flows for their combat-proven aircraft.
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Boeing (BA) Wins $189M Deal to Support F-15 Jet Program
The Boeing Company (BA - Free Report) recently clinched a modification contract to conduct low-rate initial production (LRIP) of F-15 Eagle Passive Active Warning and Survivability System (EPAWSS). Work related to the deal is scheduled to be completed by Dec 31, 2026.
Valued at $189.3 million, the contract has been awarded by the Air Force Lifecycle Management Center, Wright-Patterson Air Force Base, OH. Per the terms, Boeing will acquire Group A and B kits, support equipment, mod line standup, technical orders and interim contractor support efforts for the LRIP of the EPAWSS systems, which will be installed on existing F-15 aircraft.
Rising Demand for Military Jets & Surveillance
With rising security threats across the globe, emerging economies like Asia Pacific, the Middle East and South America are spending rapidly to enhance their defense arsenals. On the other hand, developed nations like the United States and Europe have already been leading the defense market.
It is imperative to mention in this context that military aircraft, both manned and unmanned, forms an integral part of a country’s defense products. Notably, emerging trends in the combat aircraft space like fifth-generation technology aircraft, advanced composite materials, and stealth technology have been driving demand for military jets substantially.
Now along with the growing need for military jets across the globe, state-of-the art surveillance systems are also in high demand. Notably, BAE Systems’ (BAESY - Free Report) EPAWSS offers fully integrated radar warning, geo-location, situational awareness, and self-protection solutions to detect and defeat surface and airborne threats in signal-dense contested and highly contested environments.
What’s Favoring Boeing?
The global military jet market is expanding manifold, with North America leading this space. Boeing, being the largest jet maker in the United States enjoys a dominant position. The company thus enjoys frequent flow of contracts for military jets and its associated upgrades. The latest contract win is a bright example of that.
These contract wins are providing a significant boost to the company’s defense business. Evidently, in third-quarter 2020, its defense segment — Boeing Defense, Space & Security (BDS) — recorded revenues worth $6.85 billion, reflecting year-over-year growth, amid the challenges offered by the COVID-19 crisis.
Prospects of Other Jet Manufacturers
Per a report by Fortune Business Insights, the global military aircraft market is expected to witness a CAGR of 3.1% to reach a value of $58.03 billion by 2026 from 2018. Since North America continues to dominate this market, jet makers in this nation like Boeing, Lockheed Martin (LMT - Free Report) and Northrop Grumman (NOC - Free Report) are expected to benefit in terms of steady order flows for their combat-proven aircraft.
Price Movement & Zacks Rank
In the past six months, shares of this Zacks Rank #3 (Hold) company have gained 13.9% compared with the industry’s 4.9% rise. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>