We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Boeing Foresees $2.5T Defense Market Opportunities til 2028
Read MoreHide Full Article
The Boeing Company (BA - Free Report) recently revealed its market outlook (BMO) that forecasted $2.5 trillion of defense and space opportunities through 2028. The current forecast has been made keeping in mind the U.S. government’s ongoing efforts in modernizing various military platforms and systems, inventing and adapting to military platforms and systems, and accelerating new exploration opportunities within the defense space.
Recent Budget Proposal to Aid Defense Market
In March 2019, the U.S. government proposed its fiscal 2020 defense budget, under which the Department of Defense would receive $718 billion, reflecting a 4.9% increase from the prior year. Boeing itself could be a significant beneficiary, as the proposed budget includes a spending plan of $57.7 billion on military aircraft, reflecting a 166% surge from the approved fiscal 2019 defense spending.
If approved, this increased spending provision will surely boost the aerospace and defense market across the United States, as it would usher in more contracts for the nation’s major defense companies.
Expected Rise in Foreign Military Sales
Increasing geo-political tensions across the globe have prompted nations to strengthen their defense systems manifold. Evidently, in the recent past, there has been a rise in demand for missile defense systems, fighter jets, autonomous systems, satellites, spacecraft and other critical defense products. Such steady rise in the global demand will lead to an increase in the foreign military sales of U.S.-based defense companies alongside improving inter-personal relationship among nations.
Mergers and Acquisitions to Boost Industry
In recent times, rising focus on cost-reduction initiatives, widespread competition and increased control over production procedures have prompted defense industry giants to engage in mergers and acquisitions. Moreover, the current U.S. administration has been increasing the defense budget over the past couple of years, which has enticed defense companies to strengthen product portfolio through mergers and acquisitions.
Raytheon Company’s latest all-stock merger deal with multinational conglomerate United Technologies Corp. is expected to create an entity worth $121 billion. Also, Harris Corporation and L3 Technologies are expected to combine in Merger of Equals, which will be one of the biggest defense mergers in recent years. Such consolidations by leading industry players should improve economies of scale for the aerospace-defense industry as a whole.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Image: Bigstock
Boeing Foresees $2.5T Defense Market Opportunities til 2028
The Boeing Company (BA - Free Report) recently revealed its market outlook (BMO) that forecasted $2.5 trillion of defense and space opportunities through 2028. The current forecast has been made keeping in mind the U.S. government’s ongoing efforts in modernizing various military platforms and systems, inventing and adapting to military platforms and systems, and accelerating new exploration opportunities within the defense space.
Recent Budget Proposal to Aid Defense Market
In March 2019, the U.S. government proposed its fiscal 2020 defense budget, under which the Department of Defense would receive $718 billion, reflecting a 4.9% increase from the prior year. Boeing itself could be a significant beneficiary, as the proposed budget includes a spending plan of $57.7 billion on military aircraft, reflecting a 166% surge from the approved fiscal 2019 defense spending.
If approved, this increased spending provision will surely boost the aerospace and defense market across the United States, as it would usher in more contracts for the nation’s major defense companies.
Expected Rise in Foreign Military Sales
Increasing geo-political tensions across the globe have prompted nations to strengthen their defense systems manifold. Evidently, in the recent past, there has been a rise in demand for missile defense systems, fighter jets, autonomous systems, satellites, spacecraft and other critical defense products. Such steady rise in the global demand will lead to an increase in the foreign military sales of U.S.-based defense companies alongside improving inter-personal relationship among nations.
Mergers and Acquisitions to Boost Industry
In recent times, rising focus on cost-reduction initiatives, widespread competition and increased control over production procedures have prompted defense industry giants to engage in mergers and acquisitions. Moreover, the current U.S. administration has been increasing the defense budget over the past couple of years, which has enticed defense companies to strengthen product portfolio through mergers and acquisitions.
Raytheon Company’s latest all-stock merger deal with multinational conglomerate United Technologies Corp. is expected to create an entity worth $121 billion. Also, Harris Corporation and L3 Technologies are expected to combine in Merger of Equals, which will be one of the biggest defense mergers in recent years. Such consolidations by leading industry players should improve economies of scale for the aerospace-defense industry as a whole.
Price Movement
In a year’s time, shares of this Zacks Rank #3 (Hold) company have gained 9.3% compared with the industry’s 6.2% growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>