The Zacks Analyst Blog Highlights: Lockheed Martin, Northrop Grumman, Raytheon and Boeing

Zacks Equity Research

For Immediate Release

Chicago, IL – February 26, 2020 – 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: Lockheed Martin Corp. LMT, Northrop Grumman Corporation’s NOC, Raytheon Company RTN and Boeing BA.

Here are highlights from Tuesday’s Analyst Blog:

U.S. India Set to Strike Defense Deal: Stocks to Watch

Crucial defense agreements have been the highlight of President Donald Trump’s two-day state visit to India this week. The United States is expected to strike military deals worth $3 billion with the South Asian country on Feb 25, which would have the country’s top defense contractors contend for inclusion.

Investors keen to consider defense stocks could watch these companies from an investment perspective as they strive for fitting into the much-awaited U.S.-India defense agreements.

Let’s delve deeper.

Defense Stocks Look Forward to Indian Deals

India, the world’s fourth biggest defense spender, is setting the stage for a string of defense contracts that could set the ball rolling for American defense firms.

In fact, in the week ended Feb 22, the South Asian country’s cabinet cleared $2.6 billion worth of purchase from Lockheed Martin Corp. to the Indian navy. The purchases include 24 multi-role MH-60R Seahawk maritime helicopters, which are equipped with Hellfire missiles as Times of India reported.

The Lockheed Martin helicopters will be procured via foreign military sales from the U.S. government. Shares of Lockheed Martin have risen 37.1%, outperforming the S&P 500 Index’s rally of 18.6% over a year.

Northrop Grumman Corporation’s joint venture with Lockheed Martin (LONGBOW Limited Liability Company) received a five-year sustainment indefinite delivery/indefinite quantity contract for up to $235.8 million to offer post-production support services for the AH-64 Apache helicopter AN/APG-78 LONGBOW Fire Control Radar to global customers.

This is crucial since the Indian Army is set to acquire six AH-64E Apache attack helicopters. Shares of Northrop Grumman have gained 25.2%, outperforming the S&P 500 Index’s gain of 18.5% over a year.

Per the U.S. Defense Security Cooperation Agency, earlier in February, the State Department also gave green signal to a possible sale to the country for $1.87 billion worth of arms and ammunitions. This deal comprises a Raytheon Company Integrated Air Defense Weapon System, which includes radars and missiles. The deal also consists of Raytheon Stinger FIM-92L missiles, M4A1 rifles and communications equipment among other products.

Earlier this month, Raytheon and Lockheed Martin’s Javelin Joint Venture signed a memorandum of understanding with the Indian company Bharat Dynamics to co-produce the Javelin anti-tank missile system in the South Asian country. Shares of Raytheon have risen 18.9%, outperforming the S&P 500 Index’s gain of 16.5% over the past six months.

Of course, these aren’t the only military deals that defense firms are banking on. Boeing and Lockheed Martin continue to compete for a huge fighter jet deal worth $15 billion. The contract is to deliver 114 combat planes to the Indian Air Force (IAF). Lockheed Martin even offered to shift its F-16 production line to India from the United States. The company plans to build an enhanced version of its F-21 aircraft as Reuters stated.

In order to vie for Lockheed Martin’s bid to the IAF, Boeing offered its F/A-18 Super Hornet. Overseas defense companies, such as France’s Dassault, Sweden’s Saab and Russia's United Aircraft Corp. are other contenders for this massive deal.

Lockheed Martin, Northrop Grumman and Raytheon carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
 
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
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