Honeywell International Inc. (HON - Free Report) recently secured a long-term contract from Lockheed Martin Corporation (LMT - Free Report) to produce NASA’s Orion spacecraft. As part of the upcoming Artemis missions, the spacecraft will aid NASA in taking man back to the moon for the first time since the Apollo program of 1972. The terms of the deal have been kept under wraps.
Per the agreement, Honeywell will provide major components of the Orion crew module and service module from its facility in Clearwater, FL. In addition, the company will perform some of the work pertaining to the deal from its facilities based in Arizona, Glendale and Puerto Rico. Notably, the company will work on providing 14 product types for Artemis missions III through V.
Honeywell will collaborate with Lockheed Martin and its partners in developing and manufacturing several advanced technologies over the coming decade. These include key guidance and navigation systems like barometric altimeter, inertial measurement system and GPS receiver in addition to several display and control products like display units and struts, control panels, and hand controllers. Additionally, the company will be responsible for supplying command data handling products, including vehicle management computer and flight software solutions like integrated modular avionics.
Healthy global demand for guidance and navigation systems coupled with higher aftermarket volumes on the U.S. Department of Defense programs is likely to strengthen Honeywell’s Aerospace segment’s revenues. It is also witnessing robust demand for aftermarket service business. Strength in the company’s process solutions business, driven by solid automation portfolio, coupled with strong demand for equipment, is likely to keep boosting revenues of its Performance Materials and Technology segment.
However, lower volumes of sales due to softness in its productivity products business, distributor destocking and fewer large project rollouts pose a concern for its Safety and Productivity Solutions segment.
Over the past year, the Zacks Rank #3 (Hold) company’s shares have gained 29.2% compared with the industry’s rally of 25.4%.
A couple of better-ranked stocks are Berry Global Group, Inc. (BERY - Free Report) and Crane Co. (CR - Free Report) . While Berry Global sports a Zacks Rank #1 (Strong Buy), Crane carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Berry Global outpaced estimates twice in the preceding four quarters, the positive earnings surprise being 0.70%, on average.
Crane surpassed estimates thrice in the preceding four quarters, the positive earnings surprise being 0.77%, on average.
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