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Bell-Boeing Secures Contract to Support V-22 Aircraft Program
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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 aircraft. The Naval Air Systems Command, Patuxent River, MD has awarded the deal.
Details of the Deal
Valued at $23.4 million, the contract is expected to be completed by January 2024. Per the terms of the deal, Bell-Boeing will offer continued flight test support for the V-22 aircraft.
The contract will serve the U.S. Navy, Air Force, and Foreign Military Sales (FMS) customers. Work related to this deal will be executed 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 CV-22 is a variant of the V-22 family of jets and helps conduct long-range infiltration, exfiltration and resupply missions for special operations forces.
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 deal win is a bright example of that.
Jet Manufacturers’ Prospects
Per a forecast made by Mordor Intelligence, the global military aviation market size is projected to register a CAGR of 5.4% during the 2022-2028 period. This surely is going to benefit major U.S. combat aircraft manufacturers like Bell-Boeing, Lockheed (LMT - Free Report) and Northrop Grumman (NOC - Free Report) , with North America dominating this market space.
Lockheed Martin 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.
Lockheed boasts a long-term earnings growth rate of 6.2%. In the past year, the stock has gained 23.9%.
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 3.3%. In the past year, the stock has gained 20.9%.
Price Movement & Zacks Rank
Textron’s stock has gained 21% in the past six months compared with the industry’s growth of 9.8%. Boeing’s shares have surged 46.7% in the past six months.
Image: Bigstock
Bell-Boeing Secures Contract to Support V-22 Aircraft 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 aircraft. The Naval Air Systems Command, Patuxent River, MD has awarded the deal.
Details of the Deal
Valued at $23.4 million, the contract is expected to be completed by January 2024. Per the terms of the deal, Bell-Boeing will offer continued flight test support for the V-22 aircraft.
The contract will serve the U.S. Navy, Air Force, and Foreign Military Sales (FMS) customers. Work related to this deal will be executed 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 CV-22 is a variant of the V-22 family of jets and helps conduct long-range infiltration, exfiltration and resupply missions for special operations forces.
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 deal win is a bright example of that.
Jet Manufacturers’ Prospects
Per a forecast made by Mordor Intelligence, the global military aviation market size is projected to register a CAGR of 5.4% during the 2022-2028 period. This surely is going to benefit major U.S. combat aircraft manufacturers like Bell-Boeing, Lockheed (LMT - Free Report) and Northrop Grumman (NOC - Free Report) , with North America dominating this market space.
Lockheed Martin 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.
Lockheed boasts a long-term earnings growth rate of 6.2%. In the past year, the stock has gained 23.9%.
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 3.3%. In the past year, the stock has gained 20.9%.
Price Movement & Zacks Rank
Textron’s stock has gained 21% in the past six months compared with the industry’s growth of 9.8%. Boeing’s shares have surged 46.7% in the past six months.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Textron currently carries a Zacks Rank #3 (Hold), while Boeing has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.