The Zacks Analyst Blog Highlights: Boeing, Northrop Grumman, General Dynamics, United Technologies and Lockheed Martin

News provided by

Sep 17, 2014, 09:30 ET

CHICAGO, Sept. 17, 2014 /PRNewswire/ -- 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. (NYSE:BA-Free Report), Northrop Grumman Corp. (NYSE:NOC-Free Report), General Dynamics Corp. (NYSE:GD-Free Report), United Technologies (NYSE:UTX-Free Report) and Lockheed Martin Corp. (NYSE:LMT-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 Stock Roundup

Over the last five trading sessions, defense biggies received significant deals in an otherwise anemic budget environment. Among last week's important updates, The Boeing Co. (NYSE:BA-Free Report) has been able to snag a few defense deals. Also making it to the headlines over the last five trading sessions was Northrop Grumman Corp. (NYSE:NOC-Free Report), receiving fund for expanding its RQ-4 Global Hawk unmanned aircraft system fleet.

(Read the last recap here: Defense Stock Roundup for Sep 9, 2014.)

Iraq Update

As part of the planned expanded mission against Islamic State militants announced by President Obama last week, the U.S. military conducted its first airstrike in south-west Baghdad. The Pentagon also revealed plans about the deployment of approximately 475 additional service members to Iraq to fight Islamic extremists in the country as announced by Obama on the eve of the 9/11 attacks. The president vowed to reduce and ultimately destroy the Islamic State of Iraq and the Levant (ISIL).

Last week Obama announced the expanded campaign, pledging to help drive the Islamic State militants out of Iraq and to strike them in Syria as well. Obama is expected to begin with conducted airstrikes in Iraq to protect U.S. interests and personnel, while assisting Iraqi refugees as well as securing significant infrastructure. The U.S. fighter planes have conducted more than 160 airstrikes across Iraq since August.

With the U.S. administration's pledge to engage in a long-term and more proactive intervention in Iraq, the defense stocks might see some gains going ahead.

Recap of the Week's Most Important Stories

1. The Boeing Co. has struck a $1 billion deal with the aluminum giant Alcoa Inc., under which the latter will supply aluminum sheet and plate products to the former. The contract is the largest ever between the two companies. With this deal, Alcoa becomes Boeing's sole supplier of wing skins on all of its metallic structure airplanes.

This defense giant also secured a few awards from the Pentagon's funding list. The company won a $293.2 million contract for performance-based support used across supported platforms. The original contact has a five-year base period with one five-year option. This fixed-price-incentive, requirements-type contract has a performance completion date of Sep 19, 2019. Boeing also won a $130 million modification contract to build seven new Apache AH-64E helicopters.

2. Northrop Grumman Corp. also got a slice of the U.S. defense department's funding allocation last week. The company received a $354 million contract from the U.S. Air Force to expand its RQ-4 Global Hawk unmanned aircraft system fleet by three aircraft and also to bring in additional multi-intelligence capability.

Northrop Grumman is to furnish retrofit kits to add Airborne Signals Intelligence Payload (ASIP) sensors to two existing RQ-4s. This will bring the Air Force's RQ-4 fleet size to 37 in 2017, while the ASIP retrofit kits are slated for delivery in late 2016 and 2017.

3. General Dynamics Corp.'s (NYSE:GD-Free Report) unit Electric Boat received an award worth $234.2 million from the U.S. Navy for support of active nuclear submarines. The company is one of the two contractors equipped to build nuclear-powered submarines in the U.S. (read more: General Dynamics Electric Boat Wins $234.2M Navy Contract).

4. Sikorsky Aircraft Corp. – a unit of United Technologies (NYSE:UTX-Free Report) – won a $203.6 million order from the U.S. Army for 18 UH-60M Blackhawk helicopters for the Mexican Air Force under the foreign military sales program. Estimated completion date is May 30, 2016.

5. Defense prime Lockheed Martin Corp.'s (NYSE:LMT-Free Report) business unit Mission Systems and Training won a U.S. Navy contract for low rate initial production and fielding of Surface Electronic Warfare Improvement Program (SEWIP) Block 2 systems (read more: Lockheed Secures US Navy's Electronic Warfare Contract).

Meanwhile, Pratt & Whitney − the engine manufacturer of Lockheed Martin's F-35 Joint Strike Fighter (JSF) and a unit of United Technologies – stated that its contracts with the DoD for the next two batches of engines for the F-35 fighter jet will result in combined cost savings of 7% to 8%. Pratt & Whitney stated that it had already cut costs of its F-35 engine by over 50%.

Lockheed Martin's F-35 JSF is the most pricey weapons system in U.S. history and has a potential price tag of $400 billion to $1 trillion. Its development has been marked by cost overruns, schedule delays and technical problems.

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 NOC - FREE

Get the full Report on GD - FREE

Get the full Report on UTX - FREE

Get the full Report on LMT - FREE

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
[email protected]
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.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.