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Boeing (BA) Wins Contract for Glide Breaker Phase 2 Program
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The Boeing Company (BA - Free Report) recently clinched a $70.6-million contract involving the Glide Breaker Phase 2 program. The work related to the deal will be carried out at multiple locations across the United States. The contract, which is expected to be completed by February 2027, has been awarded by the Defense Advanced Research Projects Agency, Arlington, VA.
Importance of the Glide Breaker Phase 2 Program
The results of Glide Breaker Phase 2 are intended to inform designs and model development. This will enable the acquisition of an interceptor, utilizing a divert-and-attitude-control-system-propelled kill vehicle (KV), in a future program of record.
What’s Favoring Boeing?
The rising geopolitical tension has resulted in many countries increasing their defense budget to improve and modernize warfare capabilities and strengthen their arms and ammunition inventory.
The escalating demand for technologically advanced weapons and arsenals that can effectively meet the evolving needs of the defense world has propelled the demand for military missiles. Per a report from the Mordor Intelligence firm, the missiles and missile defense system market is estimated to witness a CAGR of 4.8% between 2023 and 2028.
The expanding market should benefit Boeing as it enjoys an established position in the military missile market with its strong product portfolio like the supersonic Bomarc missile, the Thor missile, the AGM-86B/C Air Launched Cruise Missile and the GAM-77 Hound Dog Missile.
Such expertise in military missiles is likely to result in a steady order inflow for Boeing, like the latest one, thus boosting its revenue generation prospects.
Peer Prospects
Such a solid market projection is estimated to boost major defense primes like Northrop Grumman (NOC - Free Report) , RTX Corporation (RTX - Free Report) and Lockheed Martin (LMT - Free Report) , which also have a well-established position in the missile market.
Northrop Grumman designs and produces missile products, including advanced high-speed propulsion systems, fuses, warheads and controls for air, sea and land-based systems. Its key programs include the Integrated Air and Missile Defense Battle Command System, the Advanced Anti-Radiation Guided Missile, the Hypersonic Attack Cruise Missile and more.
The company boasts a long-term earnings growth rate of 4.1%. The Zacks Consensus Estimate for NOC’s 2023 sales indicates an improvement of 5.6% from the 2022 reported figure.
RTX is a leading designer, developer, integrator, producer and sustainer of integrated air and missile defense systems. Its product portfolio includes the Advanced Medium Range Air-to-Air Missile, the Guidance Enhanced Missile, the National Advanced Surface-to-Air Missile System, Tomahawk, Standard Missile 2 and a few more.
RTX’s long-term earnings growth rate is 7.9%. The Zacks Consensus Estimate for its 2023 sales indicates a 9.9% increase from the prior-year reported figure.
Lockheed Martin’s Missiles and Fire Control (“MFC”) is a recognized designer, developer and manufacturer of air and missile defense systems, tactical missiles and air-to-ground precision strike weapon systems. MFC’s key programs include the Patriot Advanced Capability-3 and Terminal High Altitude Area Defense air and missile defense programs. It also manufactures Javelin, the world's first one-man-portable, fire-and-forget, multipurpose missile system.
LMT has a long-term earnings growth rate of 6.5%. Its shares have improved 1% in the past year.
Price Performance
Shares of Boeing have rallied 33.1% in the past year against the industry’s fall of 8.2%.
Image: Bigstock
Boeing (BA) Wins Contract for Glide Breaker Phase 2 Program
The Boeing Company (BA - Free Report) recently clinched a $70.6-million contract involving the Glide Breaker Phase 2 program. The work related to the deal will be carried out at multiple locations across the United States. The contract, which is expected to be completed by February 2027, has been awarded by the Defense Advanced Research Projects Agency, Arlington, VA.
Importance of the Glide Breaker Phase 2 Program
The results of Glide Breaker Phase 2 are intended to inform designs and model development. This will enable the acquisition of an interceptor, utilizing a divert-and-attitude-control-system-propelled kill vehicle (KV), in a future program of record.
What’s Favoring Boeing?
The rising geopolitical tension has resulted in many countries increasing their defense budget to improve and modernize warfare capabilities and strengthen their arms and ammunition inventory.
The escalating demand for technologically advanced weapons and arsenals that can effectively meet the evolving needs of the defense world has propelled the demand for military missiles. Per a report from the Mordor Intelligence firm, the missiles and missile defense system market is estimated to witness a CAGR of 4.8% between 2023 and 2028.
The expanding market should benefit Boeing as it enjoys an established position in the military missile market with its strong product portfolio like the supersonic Bomarc missile, the Thor missile, the AGM-86B/C Air Launched Cruise Missile and the GAM-77 Hound Dog Missile.
Such expertise in military missiles is likely to result in a steady order inflow for Boeing, like the latest one, thus boosting its revenue generation prospects.
Peer Prospects
Such a solid market projection is estimated to boost major defense primes like Northrop Grumman (NOC - Free Report) , RTX Corporation (RTX - Free Report) and Lockheed Martin (LMT - Free Report) , which also have a well-established position in the missile market.
Northrop Grumman designs and produces missile products, including advanced high-speed propulsion systems, fuses, warheads and controls for air, sea and land-based systems. Its key programs include the Integrated Air and Missile Defense Battle Command System, the Advanced Anti-Radiation Guided Missile, the Hypersonic Attack Cruise Missile and more.
The company boasts a long-term earnings growth rate of 4.1%. The Zacks Consensus Estimate for NOC’s 2023 sales indicates an improvement of 5.6% from the 2022 reported figure.
RTX is a leading designer, developer, integrator, producer and sustainer of integrated air and missile defense systems. Its product portfolio includes the Advanced Medium Range Air-to-Air Missile, the Guidance Enhanced Missile, the National Advanced Surface-to-Air Missile System, Tomahawk, Standard Missile 2 and a few more.
RTX’s long-term earnings growth rate is 7.9%. The Zacks Consensus Estimate for its 2023 sales indicates a 9.9% increase from the prior-year reported figure.
Lockheed Martin’s Missiles and Fire Control (“MFC”) is a recognized designer, developer and manufacturer of air and missile defense systems, tactical missiles and air-to-ground precision strike weapon systems. MFC’s key programs include the Patriot Advanced Capability-3 and Terminal High Altitude Area Defense air and missile defense programs. It also manufactures Javelin, the world's first one-man-portable, fire-and-forget, multipurpose missile system.
LMT has a long-term earnings growth rate of 6.5%. Its shares have improved 1% in the past year.
Price Performance
Shares of Boeing have rallied 33.1% in the past year against the industry’s fall of 8.2%.
Image Source: Zacks Investment Research
Zacks Rank
Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.