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Boeing (BA) Wins $1.7B Deal to Support KC-46 Aircraft Program
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The Boeing Company (BA - Free Report) recently won a modification contract involving the production of KC-46 aircraft. The deal was awarded by the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH.
Valued at $1.69 billion, the contract is scheduled to be completed by Apr 30, 2023. Through the latest contract modification, Boeing will offer 12 KC-46 aircraft, data, subscriptions and licenses, and G081 flat file in addition to those being produced under the basic contract.
Work related to the deal will be executed in Seattle, WA.
Significance of KC-46
The KC-46 Pegasus is a wide-body, multirole tanker that can refuel all U.S., allied and coalition military aircraft compatible with international aerial refueling procedures. Boeing had initially designed KC-46 to carry passengers, cargo and patients. The aircraft is also equipped to detect, avoid, defeat and survive threats using multiple layers of protection, which will enable it to operate safely in medium-threat environments.
Rising Demand for Combat Jets Aids Boeing
With growing security threats across the globe, emerging economies like the Asia Pacific, the Middle East and South America are spending a lot on enhancing their defense arsenals. Meanwhile, developed nations like the United States and Europe have already been leading the defense market for some time now.
It is imperative to mention in this context that military aircraft, both manned and unmanned, form an integral constituent of a country’s defense products. Notably, emerging trends in the combat aircraft space like the fifth-generation technology aircraft, advanced composite materials, stealth technology and refueling jets like KC-46 have been driving demand substantially.
Being the United States’ largest jet maker, Boeing enjoys a smooth flow of contracts for military jets and its associated upgrades. The latest contract win is an example of the same.
Looking Ahead
Per a Morder Intelligence report, the global combat aircraft market is expected to witness a CAGR of 4% during the 2020-2025 time period. Such growth can be attributed to increasing global threats, geopolitical instabilities and higher spending on defense. These projections should benefit combat jet manufacturers like Boeing, Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and Airbus (EADSY - Free Report) .
Price Performance
In a year’s time, shares of Boeing have plunged 36.8% compared with the industry’s decline of 24.2%.
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
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Boeing (BA) Wins $1.7B Deal to Support KC-46 Aircraft Program
The Boeing Company (BA - Free Report) recently won a modification contract involving the production of KC-46 aircraft. The deal was awarded by the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH.
Valued at $1.69 billion, the contract is scheduled to be completed by Apr 30, 2023. Through the latest contract modification, Boeing will offer 12 KC-46 aircraft, data, subscriptions and licenses, and G081 flat file in addition to those being produced under the basic contract.
Work related to the deal will be executed in Seattle, WA.
Significance of KC-46
The KC-46 Pegasus is a wide-body, multirole tanker that can refuel all U.S., allied and coalition military aircraft compatible with international aerial refueling procedures. Boeing had initially designed KC-46 to carry passengers, cargo and patients. The aircraft is also equipped to detect, avoid, defeat and survive threats using multiple layers of protection, which will enable it to operate safely in medium-threat environments.
Rising Demand for Combat Jets Aids Boeing
With growing security threats across the globe, emerging economies like the Asia Pacific, the Middle East and South America are spending a lot on enhancing their defense arsenals. Meanwhile, developed nations like the United States and Europe have already been leading the defense market for some time now.
It is imperative to mention in this context that military aircraft, both manned and unmanned, form an integral constituent of a country’s defense products. Notably, emerging trends in the combat aircraft space like the fifth-generation technology aircraft, advanced composite materials, stealth technology and refueling jets like KC-46 have been driving demand substantially.
Being the United States’ largest jet maker, Boeing enjoys a smooth flow of contracts for military jets and its associated upgrades. The latest contract win is an example of the same.
Looking Ahead
Per a Morder Intelligence report, the global combat aircraft market is expected to witness a CAGR of 4% during the 2020-2025 time period. Such growth can be attributed to increasing global threats, geopolitical instabilities and higher spending on defense. These projections should benefit combat jet manufacturers like Boeing, Northrop Grumman (NOC - Free Report) , Lockheed Martin (LMT - Free Report) and Airbus (EADSY - Free Report) .
Price Performance
In a year’s time, shares of Boeing have plunged 36.8% compared with the industry’s decline of 24.2%.
Zacks Rank
Boeing currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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