We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Boeing (BA) Wins $42M Navy Deal to Modify P-8A Jet Program
Read MoreHide Full Article
The Boeing Company (BA - Free Report) recently clinched a $42.3 million modification contract to provide integrated logistics services and site activation support for P-8A aircraft. The contract was awarded by the Naval Air Systems Command, Patuxent River, MD.
The majority of the work related to the deal will be performed in Seattle, WA and Oklahoma City, OK. The deal, expected to be completed by September 2021, will serve the U.S. Navy and Australia.
About P-8A
Boeing's P-8A is an aircraft designed for long-range anti-submarine warfare, anti-surface warfare, maritime surveillance and reconnaissance missions, capable of broad-area maritime and littoral operations. It is also effective at search and rescue missions.
What’s Favoring Boeing?
Being one of the major players in the defense business, Boeing stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog. During third-quarter 2019, its defense segment — Boeing Defense, Space & Security (BDS) — witnessed solid top-line growth, courtesy of increased weapons deliveries. We believe that the latest contract win along with other notable ones in recent times will help the BDS segment to consistently deliver solid performances in the upcoming quarters.
In particular, among other defense equipment, Boeing’s strength lies in the development of combat-proven aircraft such as the P-8A Poseidon. Additionally, the company has started developing military aerial refueling and strategic transport aircraft for its fixed-wing military aircraft programs. These developments should support this aerospace giant’s growth, considering the increasing defense spending provisions made by the current U.S. administration.
Notably, the U.S. fiscal 2020 defense budget has allocated major war-fighting investments worth $57.7 billion for aircraft. The financial plan also includes an investment plan of $1.5 billion for 6 P-8A Poseidon jets. Such proposed inclusions highlight BDS segment’s solid prospects, which in turn, are likely to boost the company’s profit margin.
Price Movement
In a year’s time, shares of Boeing have lost 2.5% against the industry’s 19.3% increase.
Leidos Holdings delivered average positive earnings surprise of 6.81% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has moved 1.1% up to $4.58 over the past 60 days.
Lockheed Martin delivered average positive earnings surprise of 17.35% in the trailing four quarters. The Zacks Consensus Estimate for 2019 earnings has climbed 4.7% to $20.41 over the past 90 days.
L3Harris Technologies delivered a positive earnings surprise of 5.02%, on average, in the last four quarters. The Zacks Consensus Estimate for 2020 earnings has climbed 6.6% over the past 90 days.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Boeing (BA) Wins $42M Navy Deal to Modify P-8A Jet Program
The Boeing Company (BA - Free Report) recently clinched a $42.3 million modification contract to provide integrated logistics services and site activation support for P-8A aircraft. The contract was awarded by the Naval Air Systems Command, Patuxent River, MD.
The majority of the work related to the deal will be performed in Seattle, WA and Oklahoma City, OK. The deal, expected to be completed by September 2021, will serve the U.S. Navy and Australia.
About P-8A
Boeing's P-8A is an aircraft designed for long-range anti-submarine warfare, anti-surface warfare, maritime surveillance and reconnaissance missions, capable of broad-area maritime and littoral operations. It is also effective at search and rescue missions.
What’s Favoring Boeing?
Being one of the major players in the defense business, Boeing stands out among its peers by virtue of its broadly diversified programs, strong order bookings and solid backlog. During third-quarter 2019, its defense segment — Boeing Defense, Space & Security (BDS) — witnessed solid top-line growth, courtesy of increased weapons deliveries. We believe that the latest contract win along with other notable ones in recent times will help the BDS segment to consistently deliver solid performances in the upcoming quarters.
In particular, among other defense equipment, Boeing’s strength lies in the development of combat-proven aircraft such as the P-8A Poseidon. Additionally, the company has started developing military aerial refueling and strategic transport aircraft for its fixed-wing military aircraft programs. These developments should support this aerospace giant’s growth, considering the increasing defense spending provisions made by the current U.S. administration.
Notably, the U.S. fiscal 2020 defense budget has allocated major war-fighting investments worth $57.7 billion for aircraft. The financial plan also includes an investment plan of $1.5 billion for 6 P-8A Poseidon jets. Such proposed inclusions highlight BDS segment’s solid prospects, which in turn, are likely to boost the company’s profit margin.
Price Movement
In a year’s time, shares of Boeing have lost 2.5% against the industry’s 19.3% increase.
Zacks Rank & Key Picks
Boeing has a Zacks Rank #3 (Hold). A few better-ranked companies in the same industry are Leidos Holdings Inc. (LDOS - Free Report) , Lockheed Martin Corp (LMT - Free Report) and L3Harris Technologies, Inc. (LHX - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Leidos Holdings delivered average positive earnings surprise of 6.81% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has moved 1.1% up to $4.58 over the past 60 days.
Lockheed Martin delivered average positive earnings surprise of 17.35% in the trailing four quarters. The Zacks Consensus Estimate for 2019 earnings has climbed 4.7% to $20.41 over the past 90 days.
L3Harris Technologies delivered a positive earnings surprise of 5.02%, on average, in the last four quarters. The Zacks Consensus Estimate for 2020 earnings has climbed 6.6% over the past 90 days.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>