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The Boeing Company (BA - Analyst Report) was awarded a $17.9 million cost-plus-fixed-fee contract.  This is a modification for design and engineering services in support of the CH-47 Advanced Chinook Rotor Blade.  Work on the contract will be performed in Ridley Park, with an estimated completion date of Mar 18, 2017. The Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity. The CH-47 Chinook helicopter features Common Avionics Architecture System cockpit from Rockwell Collins Inc. (COL - Analyst Report). The helicopters are powered by two 4,733-horsepower Honeywell engines built by Honeywell International Inc. (HON - Analyst Report).

Boeing enjoys a unique position as the largest aircraft manufacturer in the world in terms of revenues, orders and deliveries, and is also one of the largest aerospace and defense contractors. Besides, its revenues are spread across more than 90 countries around the globe.

The Boeing Company is among the best-positioned in its sector due to its balanced exposure to commercial aircraft and defense equipment. With the gradual recovery of the global economy, we believe freight and passenger traffic will improve going forward. Also, the U.S. defense budget is skewed towards a number of prominent Boeing programs. Overall, the growth momentum will be maintained by an order backlog close to $390 billion, planned production rate increases and a globally diversified customer base. However, in the near term, headwinds in the global airline industry along with expected cutbacks in the U.S. defense budget affect the current valuation of the company.

Boeing is also one of the major players in the defense business, which accounts for approximately half of its top line. Boeing’s defense business stands out among its peers by virtue of its broadly diversified programs, strong order bookings and order backlog of $71 billion at the end of 2012. Also, the U.S. Department of Defense (DoD) has a focus on Boeing’s programs like the F/A-18 fighter jet and its carrier based version EA-18G Growler, P-8A Chinook helicopter, Apache and Osprey rotorcraft, and the brigade combat team modernization program. Internationally, the company is witnessing strong demand for its defense products, such as fighter jets, the C-17 series transport aircrafts, the rotorcraft line up and 737-based military derivatives. The company is also expanding its presence in cyber security, intelligence and surveillance and unmanned systems, where growth rates are higher than the overall defense budget.

The company currently has a Zacks Rank #2 (Buy). Other stocks from the sector that are also performing well presently include Lockheed Martin Corporation (LMT - Analyst Report) with a Zacks Rank #2 (Buy).

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