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Boeing Unveils 'Deep Space Gateway': To Set Foot on Mars
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In response to intensifying competition in the U.S. aerospace and defense industry, major players in this space have resorted to unconventional business line expansion. In line with this, aerospace giant The Boeing Company (BA - Free Report) recently unveiled “Deep Space Gateway” and “Deep Space Transport” concepts to fulfill mankind’s desire to explore the space, from the Moon to Mars.
Notably, Boeing in collaboration with NASA’s Space Launch System (SLS) will deliver these concepts. Management expects to construct the gateway in four launches by the early 2020s, sending humans and cargo on SLS simultaneously.
Deep Space Gateway & Transport: A Brief Note
Basically, the Deep Space Gateway is a habitat or a space outpost, with a docking system similar to the International Space Station. Notably, SLS will deliver the habitat to cislunar space, which is in or beyond the orbit of the Moon. The space outpost will host the Deep Space Transport vehicle, which will take humans to longer-duration space missions. On reaching the destination, the crew will be able to conduct surface missions or other scientific and robotic assignments.
Both the habitat and the transport vehicle will be powered by a Solar Electric Propulsion (SEP) system and incorporate hardware design from Boeing’s family of 702 communication satellite. Again, the transport vehicle will have a habitat specifically designed to protect passengers from harsh environmental conditions and its own robust SEP bus.
The gateway and transport systems are being partially developed as part of NASA’s Next Space Technologies for Exploration Technologies (Next Step) program and an ongoing High Power SEP technology development effort within the NASA Space Technology Mission Directorate (STMD).
What’s Driving Boeing’s Space Systems Expansion?
While robotic explorers have been studying Mars for more than 40 years, NASA has of late been developing the capabilities needed to send humans to Mars in the 2030s – goals outlined in the bipartisan NASA Authorization Act of 2010 and in the 2010 U.S. National Space Policy. If the Deep Space Gateway construction is completed within the stipulated time, it will be quite an achievement for NASA.
Interestingly, this news came at a high time considering President Trump’s recently published “America First Budget”, which allocated government contribution worth $3.7 billion for fiscal 2018’s SLS and associated ground system. Once the deep space gateway and transport vehicle concepts are materialized, Boeing, being the prime SLS contractor, will gain the most.
In fact, Boeing has established a strong business in space systems by designing, developing and producing the launch vehicle cryogenic stages under SLS. The company also develops avionics suites for astronauts.
Further, the gateway, once formed, aims at supporting critical research and opens up opportunities for global government or commercial partnerships in deep space, including lunar missions. Thus, other nations may also sign deals to conduct deep space research by utilizing this gateway, which will again boost Boeing’s revenues.
In 2016, the company’s Network & Space Systems business generated revenues worth $7.1 billion, representing 7.5% of total revenues. Considering the aforementioned developments, this business unit is poised to gain further traction in the days ahead.
Price Performance
Shares of Boeing gained 39.7% over the last 12 months, outperforming the Zacks categorized Aerospace–Defense industry’s gain of 24.1%. This outperformance was led by the company’s strong balance sheet and cash flow, which provided it with financial flexibility in terms of raising dividend, repurchasing shares and pursuing acquisitions. The company also poses strong competition to the likes of Lockheed Martin Corp. (LMT - Free Report) , General Dynamics Corp. (GD - Free Report) and Huntington Ingalls Industries, Inc. (HII - Free Report) .
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Boeing Unveils 'Deep Space Gateway': To Set Foot on Mars
In response to intensifying competition in the U.S. aerospace and defense industry, major players in this space have resorted to unconventional business line expansion. In line with this, aerospace giant The Boeing Company (BA - Free Report) recently unveiled “Deep Space Gateway” and “Deep Space Transport” concepts to fulfill mankind’s desire to explore the space, from the Moon to Mars.
Notably, Boeing in collaboration with NASA’s Space Launch System (SLS) will deliver these concepts. Management expects to construct the gateway in four launches by the early 2020s, sending humans and cargo on SLS simultaneously.
Deep Space Gateway & Transport: A Brief Note
Basically, the Deep Space Gateway is a habitat or a space outpost, with a docking system similar to the International Space Station. Notably, SLS will deliver the habitat to cislunar space, which is in or beyond the orbit of the Moon. The space outpost will host the Deep Space Transport vehicle, which will take humans to longer-duration space missions. On reaching the destination, the crew will be able to conduct surface missions or other scientific and robotic assignments.
Both the habitat and the transport vehicle will be powered by a Solar Electric Propulsion (SEP) system and incorporate hardware design from Boeing’s family of 702 communication satellite. Again, the transport vehicle will have a habitat specifically designed to protect passengers from harsh environmental conditions and its own robust SEP bus.
The gateway and transport systems are being partially developed as part of NASA’s Next Space Technologies for Exploration Technologies (Next Step) program and an ongoing High Power SEP technology development effort within the NASA Space Technology Mission Directorate (STMD).
What’s Driving Boeing’s Space Systems Expansion?
While robotic explorers have been studying Mars for more than 40 years, NASA has of late been developing the capabilities needed to send humans to Mars in the 2030s – goals outlined in the bipartisan NASA Authorization Act of 2010 and in the 2010 U.S. National Space Policy. If the Deep Space Gateway construction is completed within the stipulated time, it will be quite an achievement for NASA.
Interestingly, this news came at a high time considering President Trump’s recently published “America First Budget”, which allocated government contribution worth $3.7 billion for fiscal 2018’s SLS and associated ground system. Once the deep space gateway and transport vehicle concepts are materialized, Boeing, being the prime SLS contractor, will gain the most.
In fact, Boeing has established a strong business in space systems by designing, developing and producing the launch vehicle cryogenic stages under SLS. The company also develops avionics suites for astronauts.
Further, the gateway, once formed, aims at supporting critical research and opens up opportunities for global government or commercial partnerships in deep space, including lunar missions. Thus, other nations may also sign deals to conduct deep space research by utilizing this gateway, which will again boost Boeing’s revenues.
In 2016, the company’s Network & Space Systems business generated revenues worth $7.1 billion, representing 7.5% of total revenues. Considering the aforementioned developments, this business unit is poised to gain further traction in the days ahead.
Price Performance
Shares of Boeing gained 39.7% over the last 12 months, outperforming the Zacks categorized Aerospace–Defense industry’s gain of 24.1%. This outperformance was led by the company’s strong balance sheet and cash flow, which provided it with financial flexibility in terms of raising dividend, repurchasing shares and pursuing acquisitions. The company also poses strong competition to the likes of Lockheed Martin Corp. (LMT - Free Report) , General Dynamics Corp. (GD - Free Report) and Huntington Ingalls Industries, Inc. (HII - Free Report) .
Zacks Rank
Boeing currently has a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>