U.S. Markets open in 5 hrs 9 mins
  • S&P Futures

    3,417.50
    -34.25 (-0.99%)
     
  • Dow Futures

    27,899.00
    -290.00 (-1.03%)
     
  • Nasdaq Futures

    11,567.00
    -96.50 (-0.83%)
     
  • Russell 2000 Futures

    1,612.40
    -23.20 (-1.42%)
     
  • Crude Oil

    38.48
    -1.37 (-3.44%)
     
  • Gold

    1,903.10
    -2.10 (-0.11%)
     
  • Silver

    24.35
    -0.32 (-1.30%)
     
  • EUR/USD

    1.1830
    -0.0038 (-0.3194%)
     
  • 10-Yr Bond

    0.8410
    0.0000 (0.00%)
     
  • Vix

    29.93
    +1.82 (+6.47%)
     
  • GBP/USD

    1.3009
    -0.0029 (-0.2225%)
     
  • USD/JPY

    104.8730
    +0.1830 (+0.1748%)
     
  • BTC-USD

    13,035.72
    -41.30 (-0.32%)
     
  • CMC Crypto 200

    262.10
    +0.64 (+0.24%)
     
  • FTSE 100

    5,799.12
    -61.16 (-1.04%)
     
  • Nikkei 225

    23,494.34
    -22.25 (-0.09%)
     

Bell-Boeing JV Wins $46M Contract to Upgrade MV-22 Program

Zacks Equity Research
·3 mins read

Bell-Boeing, a joint venture (JV) between The Boeing Company BA and Bell Helicopter — a unit of Textron Inc. TXT, recently secured a modification contract for supporting the V-22 Common Configuration-Readiness and Modernization (CC-RAM) effort. The deal also entails upgrade of three MV-22 aircraft from a Block B to Block C configuration.

Valued at $46.1 million, the contract was awarded by the Naval Air Systems Command, Patuxent River, MD. Work related to the deal is scheduled to be completed by March 2022.

Jet Demand & V-22 Jets

A rapid increase in terror attacks has compelled nations to strengthen their arsenal and bump up defense budget. With the United States being the largest exporter of defense equipment across the world, the nation enjoys a steady flow of contracts for its combat-proven weaponries from both Pentagon and its foreign allies. With military jets and helicopters constituting a major portion of a nation’s armaments, there is a steady flow of contracts for these weaponries.

Notably, Bell-Boeing’s primary product, V-22 Osprey is a family of multi-mission, tiltrotor military aircraft with both vertical as well as short takeoff and landing capabilities. It is designed to combine the functionality of a conventional helicopter with long-range, high-speed cruise performance of a turboprop aircraft. Notably, MV-22 and CV-22 are two variants of the V-22 family of jets.

Apart from its wide usage domestically, this family of tiltrotors has been deployed in numerous missions overseas including casualty evacuation, tactical recovery of aircraft and personnel, humanitarian assistance/disaster relief, resupply, VIP transport along with theater security cooperation. No doubt with growing demand for military aircraft these tiltrotors enjoy decent demand across the globe, which is evident from the latest contract win. Such contract wins in turn tend to boost the operational performance of Bell-Boeing JV.

Looking Ahead

Per a forecast made by Fortune Business Insights, the global military aircraft market size is projected to reach $58 billion by 2026 from 2018 at a CAGR of 3.1%. This surely is going to benefit major U.S. combat aircraft manufacturers like Bell-Boeing, Lockheed LMT and Northrop Grumman NOC with North America dominating this market space.

Price Movement & Zacks Rank

Textron’s stock has lost 24.9% in the past year compared with the industry’s decline of 36.3%.



Boeing’s shares have lost 56.3% in the past year compared with the industry’s decline of 36.3%.

 

While Textron currently carries a Zacks Rank #3 (Hold), Boeing has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>

 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
 
The Boeing Company (BA) : Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
Textron Inc. (TXT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research