We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bell-Boeing Secures Contract to Aid V-22 Osprey Jet Program
Read MoreHide Full Article
Bell-Boeing, a joint venture (JV) between The Boeing Company (BA - Free Report) and Bell Helicopter — a unit of Textron Inc. (TXT - Free Report) — recently secured a modification contract involving the V-22 Osprey aircraft. The contract has been awarded by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $23.3 million, the contract is expected to be completed by January 2025. Per the terms of the deal, Bell-Boeing will provide continued flight test support for the V-22 Osprey aircraft.
The contract will cater to the U.S. Navy, Marine Corps, Air Force, and the government of Japan. The majority of the work related to this deal will be carried out in Patuxent River, MD.
Growing Jet Demand & V-22 Jets
A rapid increase in terror attacks has compelled nations to strengthen their arsenal and bump up their defense budget. With the United States being the largest exporter of defense equipment across the world, there is a steady flow of contracts for its combat-proven weaponry from both Pentagon and its foreign allies. With military jets and helicopters constituting a major portion of a nation’s armaments, there is a steady flow of contracts for these.
Bell-Boeing’s primary product, V-22 Osprey, is a family of multi-mission, tiltrotor military aircraft with both vertical as well as short takeoff and landing capabilities. It is designed to combine the functionality of a conventional helicopter with the long-range, high-speed cruise performance of a turboprop aircraft. Notably, the MV-22 is a variant of the V-22 family of jets that serves the U.S. Marine Corps and can carry 24 combat-equipped Marines and operate from ship or shore.
Considering these features of the aforementioned family of tiltrotors and the growing demand for military aircraft, V-22 and its variants enjoy decent demand across the globe. The latest contract win is a bright example of that.
Growth Prospects
Per a forecast made by Mordor Intelligence, the global military aviation market is projected to register a CAGR of 7.37% during the 2023-2028 period. This surely is going to benefit major U.S. combat aircraft manufacturers like Textron, Boeing, Lockheed Martin (LMT - Free Report) and Northrop Grumman (NOC - Free Report) , with North America dominating this market space.
Lockheed is one of the pioneers in the combat aircraft space, with its product portfolio constituting some of the most advanced military aircraft like F-35, C-130, F-16, F-22 and a few more. Of these, F-35 is the company’s largest program.
LMT boasts a long-term earnings growth rate of 8.6%. The stock has risen 11.2% in the past three months.
On the other hand, Northrop is a renowned manufacturer of autonomous and manned aircraft like MQ-4C Triton and Global Hawk. These jets are used for battle management, strike and intelligence, surveillance and reconnaissance.
Northrop boasts a long-term earnings growth rate of 2.3%. The Zacks Consensus Estimate for NOC’s 2023 sales indicates an improvement of 6.6% from the 2022 reported figure.
Price Movement & Zacks Rank
Textron’s shares have risen 14.4% in the past year against the industry’s 6.6% decline. Boeing’s shares have rallied 3% in the past year.
Image: Bigstock
Bell-Boeing Secures Contract to Aid V-22 Osprey Jet Program
Bell-Boeing, a joint venture (JV) between The Boeing Company (BA - Free Report) and Bell Helicopter — a unit of Textron Inc. (TXT - Free Report) — recently secured a modification contract involving the V-22 Osprey aircraft. The contract has been awarded by the Naval Air Systems Command, Patuxent River, MD.
Details of the Deal
Valued at $23.3 million, the contract is expected to be completed by January 2025. Per the terms of the deal, Bell-Boeing will provide continued flight test support for the V-22 Osprey aircraft.
The contract will cater to the U.S. Navy, Marine Corps, Air Force, and the government of Japan. The majority of the work related to this deal will be carried out in Patuxent River, MD.
Growing Jet Demand & V-22 Jets
A rapid increase in terror attacks has compelled nations to strengthen their arsenal and bump up their defense budget. With the United States being the largest exporter of defense equipment across the world, there is a steady flow of contracts for its combat-proven weaponry from both Pentagon and its foreign allies. With military jets and helicopters constituting a major portion of a nation’s armaments, there is a steady flow of contracts for these.
Bell-Boeing’s primary product, V-22 Osprey, is a family of multi-mission, tiltrotor military aircraft with both vertical as well as short takeoff and landing capabilities. It is designed to combine the functionality of a conventional helicopter with the long-range, high-speed cruise performance of a turboprop aircraft. Notably, the MV-22 is a variant of the V-22 family of jets that serves the U.S. Marine Corps and can carry 24 combat-equipped Marines and operate from ship or shore.
Considering these features of the aforementioned family of tiltrotors and the growing demand for military aircraft, V-22 and its variants enjoy decent demand across the globe. The latest contract win is a bright example of that.
Growth Prospects
Per a forecast made by Mordor Intelligence, the global military aviation market is projected to register a CAGR of 7.37% during the 2023-2028 period. This surely is going to benefit major U.S. combat aircraft manufacturers like Textron, Boeing, Lockheed Martin (LMT - Free Report) and Northrop Grumman (NOC - Free Report) , with North America dominating this market space.
Lockheed is one of the pioneers in the combat aircraft space, with its product portfolio constituting some of the most advanced military aircraft like F-35, C-130, F-16, F-22 and a few more. Of these, F-35 is the company’s largest program.
LMT boasts a long-term earnings growth rate of 8.6%. The stock has risen 11.2% in the past three months.
On the other hand, Northrop is a renowned manufacturer of autonomous and manned aircraft like MQ-4C Triton and Global Hawk. These jets are used for battle management, strike and intelligence, surveillance and reconnaissance.
Northrop boasts a long-term earnings growth rate of 2.3%. The Zacks Consensus Estimate for NOC’s 2023 sales indicates an improvement of 6.6% from the 2022 reported figure.
Price Movement & Zacks Rank
Textron’s shares have risen 14.4% in the past year against the industry’s 6.6% decline. Boeing’s shares have rallied 3% in the past year.
Image Source: Zacks Investment Research
Both Textron and Boeing carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.