U.S. Markets closed
  • S&P 500

    +32.40 (+0.88%)
  • Dow 30

    +248.74 (+0.83%)
  • Nasdaq

    +87.05 (+0.70%)
  • Russell 2000

    +43.75 (+2.37%)
  • Crude Oil

    +0.46 (+1.01%)
  • Gold

    +0.90 (+0.05%)
  • Silver

    +0.18 (+0.76%)

    -0.0022 (-0.1819%)
  • 10-Yr Bond

    +0.0490 (+5.33%)
  • Vix

    -0.49 (-2.30%)

    -0.0015 (-0.1088%)

    +0.2800 (+0.2696%)

    -132.10 (-0.70%)
  • CMC Crypto 200

    -10.84 (-2.86%)
  • FTSE 100

    +59.96 (+0.92%)
  • Nikkei 225

    -58.13 (-0.22%)

Honeywell Secures Deal From Lockheed Martin for NASA Project

Zacks Equity Research

Honeywell International Inc. HON recently secured a long-term contract from Lockheed Martin Corporation LMT to produce NASA’s Orion spacecraft. As part of the upcoming Artemis missions, the spacecraft will aid NASA in taking man back to the moon for the first time since the Apollo program of 1972. The terms of the deal have been kept under wraps.

Per the agreement, Honeywell will provide major components of the Orion crew module and service module from its facility in Clearwater, FL. In addition, the company will perform some of the work pertaining to the deal from its facilities based in Arizona, Glendale and Puerto Rico. Notably, the company will work on providing 14 product types for Artemis missions III through V.

Honeywell will collaborate with Lockheed Martin and its partners in developing and manufacturing several advanced technologies over the coming decade. These include key guidance and navigation systems like barometric altimeter, inertial measurement system and GPS receiver in addition to several display and control products like display units and struts, control panels, and hand controllers. Additionally, the company will be responsible for supplying command data handling products, including vehicle management computer and flight software solutions like integrated modular avionics.

Our Take

Healthy global demand for guidance and navigation systems coupled with higher aftermarket volumes on the U.S. Department of Defense programs is likely to strengthen Honeywell’s Aerospace segment’s revenues. It is also witnessing robust demand for aftermarket service business. Strength in the company’s process solutions business, driven by solid automation portfolio, coupled with strong demand for equipment, is likely to keep boosting revenues of its Performance Materials and Technology segment.

However, lower volumes of sales due to softness in its productivity products business, distributor destocking and fewer large project rollouts pose a concern for its Safety and Productivity Solutions segment.

Over the past year, the Zacks Rank #3 (Hold) company’s shares have gained 29.2% compared with the industry’s rally of 25.4%.

Key Picks

A couple of better-ranked stocks are Berry Global Group, Inc. BERY and Crane Co. CR. While Berry Global sports a Zacks Rank #1 (Strong Buy), Crane carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Berry Global outpaced estimates twice in the preceding four quarters, the positive earnings surprise being 0.70%, on average.

Crane surpassed estimates thrice in the preceding four quarters, the positive earnings surprise being 0.77%, on average.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks 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
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Berry Global Group, Inc. (BERY) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
Crane Company (CR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research