Aircraft major The Boeing Company (BA - Analyst Report) recently clinched a contract for offering labor, services and materials for the Trident II (D-5) strategic weapon system’s inertial navigation equipment. Work related to this contract is scheduled to be over by Sep 30, 2019.
The Trident II D5 is the latest generation of the U.S. Navy's submarine-launched fleet ballistic missiles, developed and produced by Pentagon’s largest contractor – Lockheed Martin Corp. (LMT - Analyst Report) .
Details of the Deal
Valued at $32.8 million, this contract was awarded by the Strategic Systems Programs, Washington, DC. On full exercise of the contract’s options, its value will stand at a maximum of $88.9 million.
Majority of the work will be carried out in Huntington Beach, CA and Heath, OH, while the rest, in various states across the nation. On exercise of all options, work will continue through Sep 30, 2020.
The contract will utilize fiscal 2017 operations and maintenance (Navy) contract funds, U.K. funds, as well as fiscal 2017 research development test and evaluation (Navy) contract funds.
Apart from being the world’s largest aircraft manufacturer in terms of revenues, orders and deliveries, Boeing also supports the domestic as well as foreign governments, with services involving activities of Engineering, Operations and Technology (EO&T).
Last month, the U.S. Navy launched an unarmed Trident II D5 Fleet Ballistic Missile. Consequently, Lockheed announced that the company is building on a 60-year partnership with the Navy to ensure that Trident remains capable for decades ahead through the company’s shared robust flight test plan.
Naturally, Boeing’s contract is expected to boost the company’s business handsomely and might even attract more such contracts in the future, given that the Trident II D5 is one of the top priorities of the U.S. Navy’s missile system.
Zacks Rank & Other Stocks to Consider
Boeing currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the aerospace and defense sector include Engility Holdings, Inc. (EGL - Snapshot Report) and AAR Corp. (AIR - Analyst Report) .
Engility sports a Zacks Rank #1 (Strong Buy) and its stock price has witnessed a 0.94% rise in the last 1 month. This company’s current year consensus estimate improved 13.6% in the last 60 days.
AAR Corp also sports a Zacks Rank #1 and has witnessed a 11.89% surge in its last 1 day’s stock price. This company’s current year consensus estimate improved 5% in the last 30 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
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