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Boeing shares (BA – Free Report) appeared Friday after the Aerospace Center won a major Defense Department contract to help develop its long life cycle. So, let's take a look at what's going on with Boeing to see if investors could consider buying BA shares for now.
L & # 39; agreement
The US Department of Defense announced Thursday that it has awarded Boeing its relatively standard "indefinite / indeterminate" contract, worth up to $ 9.2 billion for its training aircraft. advanced piloting. Boeing is expected to initially build 351 new T-X jets and provide 46 ground-based training devices or simulators, as well as "other supplies and ancillary services" for the Air Force.
Boeing could produce 475 aircraft and 120 drive systems, which are expected to be completed by 2034. This contract was won by Boeing in partnership with Sweden's Saab AB. The group defeated rival Boeing, Lockheed Martin (LMT – Free report). "We anticipate that T-X will be a franchise program for most of this century," said Leanne Caret, Boeing's CEO, in a statement.
The Air Force aims to replace its fleet of T-38 aircraft by nearly 50 years. Analysts said the air force could eventually buy up to 600 aircraft. General Arnold Bunch of the Air Force told reporters that "two-thirds of what we train for fourth and fifth generation fighters that we can not actually accomplish in the T -38 ".
The US aerospace company has also recently signed helicopter manufacturing contracts for the Air Force and refueling UAVs for the US Navy. That being said, analysts said the huge T-X program was a vital long-term victory and a sign of Boeing's competitiveness.
Overview
To go further, it's worth taking a look at what's going on at Boeing for the moment, as he fights Airbus and the emerging emerging commercial threats in China, Japan and Japan. Russia.
Last week, Boeing delivered one of its 787-9 Dreamliners to Shanghai Airlines, whiche the subsidiary of China Eastern Airlines bought Boeing and the first 787-9 Dreamliner. China is a key growth sector for Boeing, so the success of its relationship with China Eastern Airlines will likely be decisive for the future. Boeing boasts that more than 60 Dreamliners have entered service across China since 2013.
The company's revenue for the second quarter rose 5% to $ 24.26 billion. BA also obtained $ 27 billion in new orders and increased its full-year revenue forecast by $ 1 billion to $ 97 billion to $ 99 billion.
Price movement and evaluation
We can see that Boeing stocks have outperformed their sector over the past five years and have also crushed the S & P 500's approximately 77% rise. More recently, BA shares have risen by 184% over the past five years. Last 24 months, exceeding those of Amazonia (AMZN – Free Report) increase of about 140%. Boeing's stock has also risen by about 11% in the last six months.
Boeing is currently trading at 22.1X based on EPS consensus estimates for Zacks' 12-month Zacks, which is a premium over S & P's 17.5x and 19.4x sector. BA was traded up to 30.6 times last year, with a median of one year of 23.1 times.
Boeing's stock is trading above its 20.4X year-over-year low However, over the last 15 years, we have found that BA's shares are still trading as a premium to their sector and that they were not too far away for the moment.
Growth prospects
According to Zacks' current estimates, Boeing's revenues are expected to fall by 0.22% to $ 24.25 billion. That said, the company's revenue for the full year is expected to increase 5.71% to $ 98.73 billion and increase 6.08% in the next fiscal year.
On the other side of the income statement, Boeing's adjusted quarterly earnings are expected to grow by 28.31% to $ 3.49 per share, while full year earnings per share are expected to increase by 21.8%. %.
Boeing is currently ranked 3rd (maintain) Zacks rank according to the revision trends of its mixed profit estimates, but enjoys an "A" for growth in our style score system. BA's shares are near their historic highs, so investors could monitor Boeing's stock closely and look for a better time to buy.
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