The Zacks Analyst Blog Highlights: Boeing, Lockheed Martin, Raytheon, L-3 Communications Holdings and Textron
For Immediate Release
Chicago, IL – July 09, 2014 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Boeing Co. (BA-Free Report), Lockheed Martin Corp. (LMT-Free Report), Raytheon Co. (RTN-Free Report), L-3 Communications Holdings Inc. (LLL-Free Report) and Textron Inc. (TXT-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday’s Analyst Blog:
Defense Industry Stock Update
Among the important updates over the past five trading days, The Boeing Co. (BA-Free Report) reported upbeat first half 2014 delivery numbers, thereby retaining its title of the world’s largest airplane manufacturer. Lockheed Martin Corp. (LMT-Free Report) announced that it will shift active salaried workers to an enhanced defined-contribution program in order to manage rising costs and reduce long-term liabilities (see the last recap here: Defense Stock Roundup for Jul 1, 2014).
Iraq Update
Iraq's new parliament delayed its next session for five weeks, further deepening the country's political turmoil. The al-Qaeda-connected Sunni militant group, the Islamic State in Iraq and Syria (ISIS), also claimed the life of an army general near Baghdad. The insurgents had already declared the establishment of a caliphate, an Islamic state, spanning large areas of Iraq and Syria.
As per media reports, Iraq’s Prime Minister, Nouri al-Maliki might cut defense ties with the U.S. and collaborate with Iran and Russia instead. Mr Maliki is already under pressure from Washington to step down. Signed in 2008, the Strategic Framework Agreement with the U.S. sought to arrive at a long-lasting relationship between the two countries that would encourage peace, stability and democracy in Iraq. In return, the country granted defense contracts worth billions of dollars. The severing of defense ties with the U.S. will thus be a breach of contract.
Recap of the Week’s Most Important Stories
1. Boeing reported strong delivery numbers for the second quarter as well as the first half of 2014, beating its archrival, Airbus (read more: Boeing Beats Airbus in 1H14 Deliveries).
Boeing also secured a sizable contract from the National Aeronautics and Space Administration (:NASA) to develop the core stage of the largest ever Space Launch System (:SLS) rocket (read more: Boeing Gets NASA Contract for Largest Space Launch System).
2. Lockheed Martin announced that it will freeze its defined benefit pension plan and move active salaried workers to an enhanced defined-contribution program (read more: Lockheed Martin to Freeze Pension Program). This Bethesda, MD-based prime defense contractor beat Raytheon Co. (RTN-Free Report) to clinch a $200 million missile contract from the U.S. Department of Defense (DoD).
In a separate development, most of Lockheed Martin’s F-35 fighter jets are undergoing inspections, following the grounding of the entire fleet last week. Moreover, contract negotiations for the next batch of fighter jets and engines have been put on hold. The jet was expected to make its planned international debut at two upcoming airshows in the U.K. starting Friday. No decision has been taken on whether to allow the jets to fly to Britain yet.
3. A Raytheon and Lockheed Martin joint venture – Javelin – won a $162 million modification to a firm-fixed foreign military sales contract from the U.S. Army Contracting Command, Huntsville, AL. Javelin will purchase 361 Block 1 tactical missiles and 137 commands launch unit retrofits for the U.S. Army; 189 Block 1 tactical missiles and 147 Block 1 tactical missiles for the U.S. Marine Corps; and 20 Block 1 tactical missiles for New Zealand and Jordan.
4. An L-3 Communications Holdings Inc. (LLL-Free Report) unit received a $151.4 million T-45 aircraft maintenance contract (read more: L-3 Communications Gets US Navy T-45 Maintenance Contract).
5. The latest defense contractor to join the acquisition drive is Textron Inc. (TXT-Free Report). The company’s business arm TRU Simulation + Training Inc. acquired ProFlight, LLC, a leading innovative and advanced pilot training service provider (read more: Textron Unit Acquires ProFlight, LLC).
Performance
In the past one week, a few defense companies appear to have been recovering from their earlier lows. Importantly, Boeing gained 2.27% over the past five trading days.
The biggest loser was Lockheed Martin, dropping 1.99% over the time frame, with Textron following suit. In the past six months, the companies have reported in the green (except for Boeing). All the other big firms have reported single-digit share price appreciation in the last six-month time fame. Boeing has, however, lost 8.33%.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on BA - FREE
Get the full Report on LMT - FREE
Get the full Report on RTN - FREE
Get the full Report on LLL - FREE
Get the full Report on TXT - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Read the analyst report on BA
Read the analyst report on LMT
Read the analyst report on RTN
Read the analyst report on LLL
Read the analyst report on TXT
Zacks Investment Research
