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The Zacks Analyst Blog Highlights: Aerojet Rocketdyne Holdings, Lockheed Martin, Raytheon and Boeing
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For Immediate Release
Chicago, IL – November 5, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Aerojet Rocketdyne Holdings, Inc. , Lockheed Martin Corp. (LMT - Free Report) , Raytheon Company and The Boeing Company (BA - Free Report) .
America’s defense sector is on track for one of its best performances in the recent times. Signs of such strength are evident in last quarter’s financial performance by major players in the industry. GOP’s efforts to establish a larger defense budget and its landmark tax overhaul has been pivotal in shaping the sector’s fortunes.
The recent geopolitical tussle between the United States and some of its long-standing opponents has only strengthened America’s defense resolve. Finally, the country’s efforts to bolster defense ties with its close allies will provide a major boost to the space. Under such circumstances, adding defense stocks to one’s portfolio seems prudent.
Strong Q3 Earnings A Major Boost to US Defense
Major players in the defense sector have reported stronger-than-expected financial results for the third quarter of this year. UTX’s adjusted earnings in the last quarter came in at $1.93 per share, surpassing the Zacks Consensus Estimate by 6.6%. Other major players in the space, which posted an earnings beat in the third quarter, include Northrop Grumman and General Dynamics.
Northrop Grumman delivered third-quarter 2018 earnings of $6.54 per share, which outpaced the Zacks Consensus Estimate of $4.35. On the other hand, General Dynamics’ Q3 earnings from continuing operations came in at $2.89 per share, beating the Zacks Consensus Estimate of $2.74 by 5.5%.
America’s defense sector has gained significantly from the Republican-controlled Congress’ humongous defense budget. Moreover, it goes without saying that GOP’s tax overhaul late last year also provided the sector with the required stimulus for growth.
Boeing’s chief executive, Dennis Muilenburg stated that there are signs of “sustained long-term stable defense budget in the U.S.” Moreover, a stable budget environment makes it easier for players in the space to plan way ahead into the future. Such long-term planning coupled with assured stability has historically benefited any technology-intensive industry.
The removal of “sequestration" budget caps last year by the Congress has been a welcome relief for the sector. The amendment also lifted limits on defense spending that had been around since 2013. Finally, the most recent defense spending bill was passed without any “continuing resolution” which enabled companies to gauge better their future sales.
4 Hot Choices
Strong earnings in the third quarter of 2018, America’s strengthening defense resolve and GOP’s humongous defense budget would go a long way in boosting gains for the defense stocks.
In this context, we have selected four defense stocks that are expected to gain from these factors. These four stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Aerojet Rocketdyne Holdings, Inc. is the manufacturer and seller of aerospace and defense products and systems.
The company is based out of El Segundo, CA and has a Zacks Rank #1. The expected earnings growth rate for the current year is 75.68%. The company reported third-quarter 2018 adjusted earnings of 42 cents per share, surpassing the Zacks Consensus Estimate of 30 cents by 40%.
Lockheed Martin Corp. is the operator of a defense and aerospace company. The company is involved in research, design, development, manufacture, integration, and sustainment of technology systems and products used in defense and space missions.
The company is based out of Bethesda, MD and has a Zacks Rank #2. The expected earnings growth rate for the current year is 31.13%. The company’s third-quarter 2018 earnings of $5.14 per share surpassed the Zacks Consensus Estimate of $4.32 by 19%.
Raytheon Company is a leader in technology and innovations, and provides its products and services to defense and other government markets worldwide. It develops technologically advanced and integrated products, solutions and services.
The company is based out of Waltham, MA and has a Zacks Rank #2. The expected earnings growth rate for the current year is 32.41%. The company reported third-quarter 2018 earnings per share (EPS) from continuing operations of $2.25, beating the Zacks Consensus Estimate of $1.94 by 16%.
The Boeing Company engages in designing, developing, manufacturing and supporting commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems.
The company is based out of Chicago, IL and carries a Zacks Rank #2. The expected earnings growth rate for the current year is 20.80%. The company’s adjusted earnings came in at $3.58 per share for third-quarter 2018, beating the Zacks Consensus Estimate of $3.45 by 3.8%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Aerojet Rocketdyne Holdings, Lockheed Martin, Raytheon and Boeing
For Immediate Release
Chicago, IL – November 5, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Aerojet Rocketdyne Holdings, Inc. , Lockheed Martin Corp. (LMT - Free Report) , Raytheon Company and The Boeing Company (BA - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday’s Analyst Blog:
4 Great Defense Stocks to Buy in November
America’s defense sector is on track for one of its best performances in the recent times. Signs of such strength are evident in last quarter’s financial performance by major players in the industry. GOP’s efforts to establish a larger defense budget and its landmark tax overhaul has been pivotal in shaping the sector’s fortunes.
The recent geopolitical tussle between the United States and some of its long-standing opponents has only strengthened America’s defense resolve. Finally, the country’s efforts to bolster defense ties with its close allies will provide a major boost to the space. Under such circumstances, adding defense stocks to one’s portfolio seems prudent.
Strong Q3 Earnings A Major Boost to US Defense
Major players in the defense sector have reported stronger-than-expected financial results for the third quarter of this year. UTX’s adjusted earnings in the last quarter came in at $1.93 per share, surpassing the Zacks Consensus Estimate by 6.6%. Other major players in the space, which posted an earnings beat in the third quarter, include Northrop Grumman and General Dynamics.
Northrop Grumman delivered third-quarter 2018 earnings of $6.54 per share, which outpaced the Zacks Consensus Estimate of $4.35. On the other hand, General Dynamics’ Q3 earnings from continuing operations came in at $2.89 per share, beating the Zacks Consensus Estimate of $2.74 by 5.5%.
Furthermore, as of Oct 24, the Zacks Aerospace sector has witnessed earnings growth of 37.1% year over year on 10.7% sales improvement in the current reporting cycle. (Read More: Defense Stock Roundup: Q3 Picture Impressive, LMT, BA, UTX, GD Earnings Beat)
GOP’s Defense Budget Pave Way for Gains
America’s defense sector has gained significantly from the Republican-controlled Congress’ humongous defense budget. Moreover, it goes without saying that GOP’s tax overhaul late last year also provided the sector with the required stimulus for growth.
Boeing’s chief executive, Dennis Muilenburg stated that there are signs of “sustained long-term stable defense budget in the U.S.” Moreover, a stable budget environment makes it easier for players in the space to plan way ahead into the future. Such long-term planning coupled with assured stability has historically benefited any technology-intensive industry.
The removal of “sequestration" budget caps last year by the Congress has been a welcome relief for the sector. The amendment also lifted limits on defense spending that had been around since 2013. Finally, the most recent defense spending bill was passed without any “continuing resolution” which enabled companies to gauge better their future sales.
4 Hot Choices
Strong earnings in the third quarter of 2018, America’s strengthening defense resolve and GOP’s humongous defense budget would go a long way in boosting gains for the defense stocks.
In this context, we have selected four defense stocks that are expected to gain from these factors. These four stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aerojet Rocketdyne Holdings, Inc. is the manufacturer and seller of aerospace and defense products and systems.
The company is based out of El Segundo, CA and has a Zacks Rank #1. The expected earnings growth rate for the current year is 75.68%. The company reported third-quarter 2018 adjusted earnings of 42 cents per share, surpassing the Zacks Consensus Estimate of 30 cents by 40%.
Lockheed Martin Corp. is the operator of a defense and aerospace company. The company is involved in research, design, development, manufacture, integration, and sustainment of technology systems and products used in defense and space missions.
The company is based out of Bethesda, MD and has a Zacks Rank #2. The expected earnings growth rate for the current year is 31.13%. The company’s third-quarter 2018 earnings of $5.14 per share surpassed the Zacks Consensus Estimate of $4.32 by 19%.
Raytheon Company is a leader in technology and innovations, and provides its products and services to defense and other government markets worldwide. It develops technologically advanced and integrated products, solutions and services.
The company is based out of Waltham, MA and has a Zacks Rank #2. The expected earnings growth rate for the current year is 32.41%. The company reported third-quarter 2018 earnings per share (EPS) from continuing operations of $2.25, beating the Zacks Consensus Estimate of $1.94 by 16%.
The Boeing Company engages in designing, developing, manufacturing and supporting commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems.
The company is based out of Chicago, IL and carries a Zacks Rank #2. The expected earnings growth rate for the current year is 20.80%. The company’s adjusted earnings came in at $3.58 per share for third-quarter 2018, beating the Zacks Consensus Estimate of $3.45 by 3.8%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.