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In a speech on Aug 9, U.S. vice-president, Mike Pence announced the Trump administration’s plans to establish an elite space force as part of the U.S. military. The newest branch of defense would be the first of its kind, dedicated solely towards safeguarding America and its citizens from the space.
Initially, on Jun 18, President Donald Trump expressed his desire and eagerness to take America to the top spot in the space race once again, hinting at establishing the force. Though the move has invited flak from across the country, companies involved in space-related work have actually rallied since the initial announcement.
Under such circumstances, investing in defense and aerospace companies from the United States seems prudent.
What is the Space Force All About?
There have been decades of contemplation regarding the creation of U.S. Space Corps, with the most recent effort being in 2017. The U.S. House Armed Services Committee even drafted a bill for the corps under the 2018 National Defense Authorization Act.
As proposed by both Pence and Trump, the newest branch of U.S. military would be incorporated by 2020. The force would be officially called “Space Operations Force” and is touted to be on par with other branches of the military such as the navy, air force, army and coast guard. Pence also stated that it would be an “elite group of war fighters specializing in the domain of space,” selected among serving officers across different branches of military.
This apart, the administration also plans to create U.S. Space Command as well as a Space Development Agency. Further, an assistant secretary of defense for space is also likely to be selected. Moreover, the administration feels it is necessary to protect America from ‘galactic threats’ from Russia and China which supposedly have technologies to develop weapons to completely destruct America’s satellites in high earth orbit, thereby jeopardizing the country’s communication and transmission systems.
Moreover, on Jun 20, NASA along with a few federal officials had published a report on the approach United States should take in the coming years to protect our plant from a spate of asteroid attacks. The 18-page report has been termed "The National Near-Earth Object Preparedness Strategy and Action Plan." The agenda seeks contribution from different departments within the federal government.
The Proposed Funding for the Program
Pence urged the U.S. Congress to earmark $8 billion over the next five years for the much-ambitious project. He also stated that a fully incorporated space force is going to cost much more. Notably, the deputy defense secretary, Patrick Shanahan has stated that Pentagon has not commented on the exact cost of the project. Meanwhile, defense secretary, James Mattis, who had earlier objected to the program has now stated that he supports it.
4 Best Choices
Since his election, Trump has vowed to get Americans back to space in a bid to reclaim the top spot in the space race. Further, NASA’s commitment to safeguard the earth from celestial rocks has provided the necessary impetus for further investments in such projects.
In this context, we have selected four stocks that are expected to gain from these factors. These four stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
L3 Technologies, Inc. is a provider of aerospace systems, communication, electronic, and sensor systems for military purposes as well as homeland security.
The company is based out of New York, and sports a Zacks Rank #1. The expected earnings growth rate for the current year is 18.29%. The Zacks Consensus Estimate for the current year has improved 3.6% over the past 60 days.
Aerojet Rocketdyne Holdings, Inc. engages in designing, developing, manufacturing and selling of aerospace and defense products and systems.
This Zacks Rank #1 company is based out of El Segundo, CA. The expected earnings growth rate for the current year is 13.89%. The Zacks Consensus Estimate for the current year has improved 30.9% over the past 60 days.
Lockheed Martin Corporation (LMT - Free Report) engages in research, design, development and manufacture of aerospace systems and products.
This Zacks Rank #2 company is based out of Bethesda, MD. The expected earnings growth rate for the current year is 29.20%. The Zacks Consensus Estimate for the current year has improved 6.1% over the past 60 days.
Textron Inc. (TXT - Free Report) is a manufacturer of turboprop and piston engine aircraft, military trainer and defense aircraft as well as space flight systems.
The company is based out of Providence, RI and carries a Zacks Rank #2. The expected earnings growth rate for the current year is 34.95%. The Zacks Consensus Estimate for the current year has improved 5.1% over the last 60 days.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Pence Announces Space Force by 2020: 4 Picks
In a speech on Aug 9, U.S. vice-president, Mike Pence announced the Trump administration’s plans to establish an elite space force as part of the U.S. military. The newest branch of defense would be the first of its kind, dedicated solely towards safeguarding America and its citizens from the space.
Initially, on Jun 18, President Donald Trump expressed his desire and eagerness to take America to the top spot in the space race once again, hinting at establishing the force. Though the move has invited flak from across the country, companies involved in space-related work have actually rallied since the initial announcement.
Under such circumstances, investing in defense and aerospace companies from the United States seems prudent.
What is the Space Force All About?
There have been decades of contemplation regarding the creation of U.S. Space Corps, with the most recent effort being in 2017. The U.S. House Armed Services Committee even drafted a bill for the corps under the 2018 National Defense Authorization Act.
As proposed by both Pence and Trump, the newest branch of U.S. military would be incorporated by 2020. The force would be officially called “Space Operations Force” and is touted to be on par with other branches of the military such as the navy, air force, army and coast guard. Pence also stated that it would be an “elite group of war fighters specializing in the domain of space,” selected among serving officers across different branches of military.
This apart, the administration also plans to create U.S. Space Command as well as a Space Development Agency. Further, an assistant secretary of defense for space is also likely to be selected. Moreover, the administration feels it is necessary to protect America from ‘galactic threats’ from Russia and China which supposedly have technologies to develop weapons to completely destruct America’s satellites in high earth orbit, thereby jeopardizing the country’s communication and transmission systems.
Moreover, on Jun 20, NASA along with a few federal officials had published a report on the approach United States should take in the coming years to protect our plant from a spate of asteroid attacks. The 18-page report has been termed "The National Near-Earth Object Preparedness Strategy and Action Plan." The agenda seeks contribution from different departments within the federal government.
The Proposed Funding for the Program
Pence urged the U.S. Congress to earmark $8 billion over the next five years for the much-ambitious project. He also stated that a fully incorporated space force is going to cost much more. Notably, the deputy defense secretary, Patrick Shanahan has stated that Pentagon has not commented on the exact cost of the project. Meanwhile, defense secretary, James Mattis, who had earlier objected to the program has now stated that he supports it.
4 Best Choices
Since his election, Trump has vowed to get Americans back to space in a bid to reclaim the top spot in the space race. Further, NASA’s commitment to safeguard the earth from celestial rocks has provided the necessary impetus for further investments in such projects.
In this context, we have selected four stocks that are expected to gain from these factors. These four stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
L3 Technologies, Inc. is a provider of aerospace systems, communication, electronic, and sensor systems for military purposes as well as homeland security.
The company is based out of New York, and sports a Zacks Rank #1. The expected earnings growth rate for the current year is 18.29%. The Zacks Consensus Estimate for the current year has improved 3.6% over the past 60 days.
Aerojet Rocketdyne Holdings, Inc. engages in designing, developing, manufacturing and selling of aerospace and defense products and systems.
This Zacks Rank #1 company is based out of El Segundo, CA. The expected earnings growth rate for the current year is 13.89%. The Zacks Consensus Estimate for the current year has improved 30.9% over the past 60 days.
Lockheed Martin Corporation (LMT - Free Report) engages in research, design, development and manufacture of aerospace systems and products.
This Zacks Rank #2 company is based out of Bethesda, MD. The expected earnings growth rate for the current year is 29.20%. The Zacks Consensus Estimate for the current year has improved 6.1% over the past 60 days.
Textron Inc. (TXT - Free Report) is a manufacturer of turboprop and piston engine aircraft, military trainer and defense aircraft as well as space flight systems.
The company is based out of Providence, RI and carries a Zacks Rank #2. The expected earnings growth rate for the current year is 34.95%. The Zacks Consensus Estimate for the current year has improved 5.1% over the last 60 days.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>