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Boeing (BA) Wins Contract to Support Harpoon Missile Systems
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The Boeing Company (BA - Free Report) recently clinched an $11.5-million contract to support the production and delivery of parts for mobile Harpoon Coastal Defense Cruise Missile systems. 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 September 2025, has been awarded by the Naval Air Systems Command, Patuxent River, MD.
What’s Favoring Boeing?
As nations continue to strengthen their defense structure, defense spending on military arms and ammunition continues to increase manifold. This also includes increased investments in military missiles as they play a critical role in military missions and act as a deterrent against enemy attacks.
Going forward, per a report from the Mordor Intelligence firm, the missile and missile defense system market is projected to witness a CAGR of 4.8% during the 2023-2028 period. This tends to benefit Boeing as its Defense, Space & Security segment engages in the research, development, production and modification of products and related services, including strategic missile and defense systems.
In the missile segment, the company delivers the most advanced technology that enhances military air and missile defense capabilities. Apart from the Harpoon missile, its proven missile portfolio includes the supersonic Bomarc missile, the Thor missile, the AGM-86B/C Air Launched Cruise Missile and the GAM-77 Hound Dog Missile.
Due to the impressive missile products Boeing offers, the company witnesses a steady inflow of orders from the Pentagon and other U.S. allies, like the latest one, which continues to bolster its overall revenue generation prospects.
Peer Moves
The widening missile system market is also likely to benefit other defense majors 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 system market.
Lockheed Martin’s Missiles and Fire Control (“MFC”) is a recognized designer, developer and manufacturer of precision engagement aerospace and defense systems for the United States and allied militaries. MFC develops, manufactures and supports advanced combat, missile, rocket, manned and unmanned systems for military customers. These include the U.S. Army, Navy, Air Force, Marine Corps, NASA and dozens of foreign allies.
Lockheed boasts a long-term earnings growth rate of 8.4%. The Zacks Consensus Estimate for 2023 sales suggests a growth rate of 1% from the prior-year period.
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 Corp’s long-term earnings growth rate is pegged at 9.4%. The Zacks Consensus Estimate for 2023 sales calls for a growth rate of 9.9% from the prior-year period.
Northrop Grumman designs and produces missile products, including advanced high-speed propulsion systems, fuses, warheads and controls for air, sea and land-based systems.
Northrop boasts a long-term earnings growth rate of 3.7%. The Zacks Consensus Estimate for 2023 sales implies a growth rate of 5.8% from the prior-year period.
Price Performance
Shares of Boeing have rallied 43.5% in the past year against the industry’s fall of 5.9%.
Image: Bigstock
Boeing (BA) Wins Contract to Support Harpoon Missile Systems
The Boeing Company (BA - Free Report) recently clinched an $11.5-million contract to support the production and delivery of parts for mobile Harpoon Coastal Defense Cruise Missile systems. 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 September 2025, has been awarded by the Naval Air Systems Command, Patuxent River, MD.
What’s Favoring Boeing?
As nations continue to strengthen their defense structure, defense spending on military arms and ammunition continues to increase manifold. This also includes increased investments in military missiles as they play a critical role in military missions and act as a deterrent against enemy attacks.
Going forward, per a report from the Mordor Intelligence firm, the missile and missile defense system market is projected to witness a CAGR of 4.8% during the 2023-2028 period. This tends to benefit Boeing as its Defense, Space & Security segment engages in the research, development, production and modification of products and related services, including strategic missile and defense systems.
In the missile segment, the company delivers the most advanced technology that enhances military air and missile defense capabilities. Apart from the Harpoon missile, its proven missile portfolio includes the supersonic Bomarc missile, the Thor missile, the AGM-86B/C Air Launched Cruise Missile and the GAM-77 Hound Dog Missile.
Due to the impressive missile products Boeing offers, the company witnesses a steady inflow of orders from the Pentagon and other U.S. allies, like the latest one, which continues to bolster its overall revenue generation prospects.
Peer Moves
The widening missile system market is also likely to benefit other defense majors 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 system market.
Lockheed Martin’s Missiles and Fire Control (“MFC”) is a recognized designer, developer and manufacturer of precision engagement aerospace and defense systems for the United States and allied militaries. MFC develops, manufactures and supports advanced combat, missile, rocket, manned and unmanned systems for military customers. These include the U.S. Army, Navy, Air Force, Marine Corps, NASA and dozens of foreign allies.
Lockheed boasts a long-term earnings growth rate of 8.4%. The Zacks Consensus Estimate for 2023 sales suggests a growth rate of 1% from the prior-year period.
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 Corp’s long-term earnings growth rate is pegged at 9.4%. The Zacks Consensus Estimate for 2023 sales calls for a growth rate of 9.9% from the prior-year period.
Northrop Grumman designs and produces missile products, including advanced high-speed propulsion systems, fuses, warheads and controls for air, sea and land-based systems.
Northrop boasts a long-term earnings growth rate of 3.7%. The Zacks Consensus Estimate for 2023 sales implies a growth rate of 5.8% from the prior-year period.
Price Performance
Shares of Boeing have rallied 43.5% in the past year against the industry’s fall of 5.9%.
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.