For Immediate Release

Chicago, IL – June 26, 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 Lockheed Martin Corp. (LMT-Free Report), United Technologies Corp. (UTX-Free Report), Boeing Co. (BA-Free Report), Raytheon Co. (RTN-Free Report), Northrop Grumman Corp. (NOC-Free Report), General Dynamics Corp. (GD-Free Report) and L-3 Communications Holdings Inc. (LLL-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday’s Analyst Blog:

Defense Stock Roundup: Lockheed Wins SBRIS Missile Deal, U.S. Military Advisers Start Work in Iraq

Over the past five trading days, there has been a lull in the defense sector with the major companies continuing to trade in the red. Although the sector snapped up a few big deals, investors were not too impressed with defense stocks leading to big sell-offs in many names. Yet, the sector tried to plug the budget challenges and resorted to acquisitions.

Among the important updates in the past one week, Lockheed Martin Corp. (LMT-Free Report) was once again in the headlines with a big satellite deal. Just as Pentagon strives to develop a more resilient space division to counter emerging security threats, the defense contractors specializing in space systems continue to gain from it. Again, United Technologies Corp. (UTX-Free Report) signed a deal with Canada for the delivery of 28 maritime helicopters on the Canadian Maritime Helicopter Program. On the flipside, The Boeing Co.’s (BA-Free Report) share price continued to suffer, failing to win back investor confidence (see the last recap here: Defense Stock Roundup for June 17, 2014).

Iraq Anarchy

Bloodshed in Iraq saw no respite this last week with the al-Qaeda connected Sunni militant group, the Islamic State in Iraq and Syria (ISIS), capturing a pair of crucial border crossings with Syria and Jordan. In addition to their control in northern Iraq, the insurgents have now strengthened their hold in the western province of Anbar and were controlling Al-Qaim, Rawa, Ana and Husaybah.

With mounting pressure on the U.S. to intervene, the first U.S. service troops arrived in Iraq to help the Iraqi military to counter the advancing Sunni insurgency. About 90 troops have arrived in Baghdad and they will join some 40 others attached to the U.S. Embassy. They will establish assessment teams and a joint operations center with Iraqi forces. These troops were amongst the first that President Barack Obama had in mind last week when he ordered to send up to 300 military troops to Iraq. Moreover, four additional teams totaling about 50 people will arrive in Iraq in the coming days.

Pentagon said that the U.S. and Iraq have struck a deal under which legal protections will be given to American commandos deployed in Iraq. The department also confirmed that the troops will only assess the state of the Iraqi army and will not stage any attacks against ISIS.

Ominously, the insurgents, who want to establish their own state in Iraq and Syria, are reportedly pushing toward the capital city of Baghdad. With the possibility of rising aggression in Iraq, the defense stocks may see some quick gains.

Recap of the Week’s Most Important Stories

1. Lockheed Martin – Pentagon’s prime contractor – continues to defy sequestration. It grabbed a U.S. Air Force deal valued at $1.9 billion. The contract calls for Lockheed Martin to complete work on two missile-warning satellites as part of the Space-Based Infrared System (:SBIRS) program (read more: Lockheed Martin Clinches $1.9B GEO-5 and GEO-6 Satellite Contract).

2. In a separate development, Lockheed Martin recently entered into a definite agreement to acquire Deposition Science Inc., a supplier of thin-film coatings. The to-be-acquired business will merge with its Aeronautics business arm. More goods news flowed in at Lockheed Martin’s Aeronautics division as it won a $222.9 million Air Force modification contract for lending services to the C-5 Reliability Enhancement and Re-engining Program (read more: Lockheed Boosts Asset Portfolio, Seals an Air Force Deal).

3. Defense contractor Raytheon Co.’s (RTN-Free Report) Missile Systems division will build radio-controlled anti-tank missiles for the U.S. Army and Marine Corps, as well as for the Saudi Arabia and Oman militaries under a contract modification valued at $391.5 million. Deliveries will continue through Mar 2018.

4. Los Angeles based defense contractor Northrop Grumman Corp. (NOC-Free Report) won a $238 million modification contract to provide infrared countermeasure systems to the U.S. Air Force. The deal entails Northrop Grumman to deliver additional transmitters, missile warning sensors, processors, lasers, control interface units and supporting equipment over the next two years for the Large Aircraft Infrared Countermeasure (:LAIRCM) system.

5. Sikorsky Aircraft Corp., a unit of diversified conglomerate United Technologies, signed a deal with Canada for the delivery of 28 maritime helicopters, thereby ending a long and costly dispute (read more: United Tech Amends Canada Deal, Reaffirms Guidance).

Performance

Despite important deals won from the Pentagon in the past one week, shares of all defense biggies were in the red. The biggest loser Textron Inc. dropped 4.38% over the time frame, with Boeing following suit. In the past 6 months, the companies have reported in the green (except for Boeing), though they are gradually losing their momentum. General Dynamics Corp. (GD-Free Report) and L-3 Communications Holdings Inc. (LLL-Free Report) registered double-digit share price growth, with the former leading the way. All other biggies have reported single-digit share price appreciation in the six months time fame while Boeing is slowly losing its spot with a telling 6.60% decline. The following table shows the price movement of the major defense players over the past 5 trading days and during the last 6 months.

What’s Next in the Defense World?

The aerospace and defense sector is getting accustomed to budget cuts and the easy upward slope of last year is likely to hit a plateau. Yet, the ongoing Iraqi civil war, escalating tensions in Eastern Europe and demand for defense products in the Middle East and other Asian nations may keep the hope alive.

We remind investors that the Zacks Industry Rank for aerospace/defense is within the top one-third of the list of 260-plus industries. Hence, the prospects for this industry are still very much in place. We however expect the slightly flat-to-bearish run of the defense stocks to persist in the coming days (to know more please see: Zacks Industry Rank).

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 LMT - FREE
Get the full Report on UTX - FREE
Get the full Report on BA - FREE
Get the full Report on RTN - FREE
Get the full Report on NOC - FREE
Get the full Report on GD - FREE
Get the full Report on LLL - 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 LMT

Read the analyst report on UTX

Read the analyst report on BA

Read the analyst report on RTN

Read the analyst report on NOC

Read the analyst report on GD

Read the analyst report on LLL


Zacks Investment Research