|Bid||153.02 x 800|
|Ask||155.49 x 1200|
|Day's Range||153.68 - 155.53|
|52 Week Range||110.65 - 155.53|
|Beta (5Y Monthly)||1.22|
|PE Ratio (TTM)||26.05|
|Earnings Date||Jan 27, 2020|
|Forward Dividend & Yield||2.94 (1.91%)|
|Ex-Dividend Date||Nov 12, 2019|
|1y Target Est||165.69|
Fastenal warned of weakness into the first half of 2020. Investors should pay attention to the industrial distributors results. They know industrial markets have been weak, but were waiting for a pickup in activity in the new year.
NORESCO, a national leader in energy efficiency, resiliency and infrastructure solutions, has been awarded an energy savings performance contract (ESPC) to implement 10 megawatts of onsite power generation at Kadena Air Base in Okinawa, Japan. As home to the U.S. Air Force's largest combat wing, Kadena Air Base is vital to the security of the Pacific region and the United States. The power generation assets will be part of a new advanced microgrid that will enable the Base to more effectively sustain operations and meet critical mission requirements during utility outages. The $85.7 million project, contracted through DLA Energy and in collaboration with the Air Force Civil Engineer Center (AFCEC), requires no upfront capital from the Air Force and will generate more than $153 million in guaranteed cost savings over the performance period.
(Bloomberg Opinion) -- There’s no clearer sign we’ve reached peak breakup in industrials than a pure-play transportation and logistics company blaming a “conglomerate discount” for its decision to consider cleaving itself into smaller pieces.XPO Logistics Inc. confirmed late Wednesday that it was exploring strategic alternatives including the possible sale or spinoff of one or more of its units. The review could see businesses that generate as much as 75% of XPO’s revenue jettisoned, with the European, North American and Asia-Pacific supply-chain operations and its European and North American transportation arms all potentially on the block, people familiar with the matter told Bloomberg News. That would leave XPO with its North American short-haul trucking business. XPO CEO Brad Jacobs told Bloomberg TV he’s exploring breakup options because the company is suffering from a “conglomerate discount” and “Wall Street understands pure plays.”Those are in-vogue words right now for industrial CEOs after an unprecedented wave of breakups. But the majority of those splits involved businesses that had little or only tenuous connections to each other – think the separation of Ingersoll-Rand Plc’s golf cart, tools and pumps business from its HVAC division, or United Technologies Corp.’s breakup of its aviation, climate and elevator businesses. Even controversial breakups such as Honeywell International Inc.’s spinoff of its Resideo Technologies Inc. thermostat and Garrett Motion Inc. turbochargers businesses, or Fortive Corp.’s plan to carve out its legacy industrial products, involved divisions that clearly didn’t fit. XPO is splitting the hairs much more finely. According to its most recent annual filing, the company gets 65% of its revenue from transportation and 35% from logistics.All the same, the market clearly does love this move. The stock climbed more than 10% on the news, with some of that likely reflecting a squeeze on short sellers who have a 13.1% interest in shares outstanding, according to Markit. Citigroup Inc. analyst Christian Wetherbee estimated a breakup could add as much as $66 a share to XPO’s equity value. And that’s likely appealing for investors looking for a story to bet on amid generally elevated valuations elsewhere in industrial stocks. But it’s hard not to view this breakup plan as a waving of the white flag for a company that was built via consolidation but has struggled of late to get deals done. XPO hasn’t announced a major acquisition since 2015, despite Jacobs’s exclamation in 2017 that he was ready to spend up to $8 billion. Last year, XPO said it would pivot away from M&A and plow billions into share buybacks instead. That helped drive XPO shares to a 40% gain in 2019, despite a recession in freight markets.With its debt levels rising and little in the way of real earnings growth, keeping the party going presented a challenge. Jacobs laid out a plan in August to add as much as $1 billion of profit by 2022 via cost cuts and new business. Bloomberg Intelligence analyst Lee Klaskow, who noted at the time that such a push carried significant execution risk, says the breakup may be a sign that XPO had already squeezed all it could from the business as far as operating improvements and technology investments.The point of all of XPO’s M&A activity was to wring costs out of the combined operations and gain more negotiating clout with suppliers. Jacobs told Bloomberg TV that XPO’s combination of businesses had helped it add more than $2 billion of revenue organically. “We actually will lose some bargaining power as smaller companies with vendors because we won’t have the global procurement capability,” Jacobs said. But he thinks smaller, more agile businesses will be more appealing to both customers and shareholders.When a CEO is talking out of two sides of his mouth, it sure sounds like financial engineering.To contact the author of this story: Brooke Sutherland at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
United Technologies Corp. (NYSE: UTX) unit Collins Aerospace will build life support, environmental, waste management and temperature control subsystems, along with power hardware for NASA's Orion spacecraft fleet that's aiming to put "boots on the moon," by 2024, the company said Wednesday. The $320 million contract Collins signed with the mission's prime contractor, Lockheed Martin Corporation (NYSE: LMT), will be for the subsystem work on Orion ships to be used in the Artemis III through Artemis VIII missions, which are not only aimed at putting people back on the moon, but keeping a sustained presence there in preparation for continuing on to Mars.
Collins Aerospace Systems, a unit of United Technologies Corp. (NYSE: UTX), has signed a contract with Lockheed Martin to provide critical subsystems to support production of NASA's Orion spacecraft fleet for Artemis missions III through VIII. Valued at $320 million, the systems being provided by Collins Aerospace will play an important role in enabling NASA's goal of boots on the Moon by 2024, as well as establishing a sustained presence on and around the Moon to prepare for missions to Mars.
Defense contractors have continued to outpace the market as tensions heat up and the Pentagon focuses on Russia and China. So is Raytheon stock a good buy?
(Bloomberg Opinion) -- A would-be Boeing Co. takeover target has found its own dance partner.Woodward Inc., a maker of cockpit controls and engine-actuation systems, announced late Sunday that it’s merging with fellow aerospace supplier Hexcel Corp. The all-stock deal values Hexcel, a maker of lightweight composite materials, at about $7.5 billion including debt, with Woodward shareholders set to own about 55% of the combined company. While both suppliers have felt the sting of Boeing’s 737 Max grounding, executives said Sunday that the deal wasn’t a response to that crisis but rather an effort to position the combined company to better compete in the pursuit of more fuel-efficient engines.The effort to sell this merger as a play on climate change is interesting, and it shows the degree to which companies are taking seriously the increasing criticism of greenhouse-gas emissions. At the same time, it’s hard to extricate Boeing and its Max woes from the context of the deal. Just two years ago, it might have been Boeing making these kinds of arguments about the benefits of scale and combined research-and-development budgets.Boeing held preliminary talks with Woodward as it scouted targets for its push to build a services division with $50 billion in sales, according to reports in early 2018 from Bloomberg News and the Wall Street Journal. Woodward pushed back on those reports and said it wasn’t in discussions with Boeing on a possible sale. Boeing instead acquired KLX Inc.’s aerospace-distribution business for $4.25 billion and announced an auxiliary power unit joint venture with Safran SA. This added to home-grown efforts in avionics and cabin interiors and spooked investors in traditional suppliers of those parts and services.As recently as May, ex-Boeing CEO Dennis Muilenburg was talking about the prospect of additional deals in the vein of KLX – “a substantial, multi-billion dollar acquisition, but one that was complementary.” With the now 10-month Max grounding draining Boeing’s cash flow and mounting scrutiny over the company’s corporate culture and the integrity of its design process, it’s highly unlikely the company will be making acquisitions anytime soon, and entirely possible that its parts and services ambitions go no further.That creates an opportunity for its suppliers, and Woodward and Hexcel are right to seize the moment to gain more clout, particularly as it looks increasingly likely that Boeing will have to speed up development of a narrow-body successor to the 737. With new technologies requiring ever-higher levels of spending, it also just helps to have a bigger balance sheet. Woodward and Hexcel expect to spend $250 million on R&D in the first year after the deal closes, or about 5% of combined sales. That’s a roughly 15% step-up from estimated 2019 levels, notes Jefferies analyst Sheila Kahyaoglu. “Woodward and Hexcel touch nearly every aspect of aerospace design,” Hexcel CEO Nick Stanage, who will retain that role at the combined company, said on a conference call Sunday. The merged entity will be well-positioned to deliver “integrated systems that satisfy demands for aircraft aerodynamics, energy efficiency, improved safety and reduced emissions and noise.”The Woodward-Hexcel combination follows a United Technologies Corp. $100 billion buying spree over the past two years that saw the engine maker link up with avionics supplier Rockwell Collins Inc. and defense contractor Raytheon Co., as well as smaller tie-ups between Parker-Hannifin Corp. and Exotic Metals Forming Co. and TransDigm Group Inc. and Esterline Technologies Corp. Analysts expressed some caution on Hexcel and Woodward’s ambitious goal of generating $1 billion of cash flow in the first fiscal year after closing, and time will tell if the companies can follow through. But strategically, it’s a bold and smart move that should give the companies an upper hand in both the battle against climate change and any future battles with Boeing. To contact the author of this story: Brooke Sutherland at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
United Technologies is under the scanner as the Pentagon reviews Pratt & Whitney's costs for Lockheed Martin F-35 stealth fighters.
DOW UPDATE Dragged down by negative returns for shares of Boeing and Travelers, the Dow Jones Industrial Average is trading down Friday afternoon. Shares of Boeing (BA) and Travelers (TRV) are contributing to the blue-chip gauge's intraday decline, as the Dow (DJIA) was most recently trading 153 points, or 0.
DOW UPDATE The Dow Jones Industrial Average is declining Friday morning with shares of Boeing and Travelers facing the biggest declines for the index. The Dow (DJIA) was most recently trading 78 points lower (-0.
Boeing is slowly losing support on Wall Street. Less than 40% of analysts who cover the stock rate it Buy, down from 83% a year ago.
Defense stocks are flying high amid fears of escalating U.S. and Iran tensions. But President Trump on Wednesday eased immediate fears of military conflict.
United Technologies' (UTX) HUD VR device offers high flexibility and efficacy to FAA experts that are required for performing research in advanced vision systems on HUDs.
The Federal Aviation Administration (FAA) has ordered a Head-Up Display (HUD) Virtual-Reality (VR) training device from Collins Aerospace Systems, a unit of United Technologies Corp. (NYSE: UTX), to be used in scientific research in areas such as pilot-HUD interface, pilot performance and crew workload.
United Technologies Corp. (NYSE:UTX) will issue its fourth quarter 2019 earnings press release on Tuesday, January 28, prior to the stock market opening. A conference call will take place at 8:00 a.m. ET.
The geopolitical situation is intensifying following last week's surprise takeout of a key Iranian military commander by President Donald Trump and the United States military. Tehran is threatening retaliation. Trump is calling for possible attacks on Iran's cultural sites. Things are surely going to get worse before they get better.Wall Street is growing increasingly nervous about a cycle of escalation that could disrupt global oil supplies, just to name one possible consequence. Gold and gold mining stocks have been a key area of strength amid the tensions. But other areas are perking up as well. Here are four defense stocks that are taking flight.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Defense Stocks to Buy: General Dynamics (GD)Source: Chart courtesy of StockCharts.com Shares of General Dynamics (NYSE:GD) are bouncing once again off of critical support near its 200-day moving average, setting up a return to prior highs set back in September near $192 per share. Such a move would be worth a gain of 5% from here, adding to the 2.3% dividend yield the stock pays.When the company next reports results, analysts are looking for earnings of $3.44 per share on revenues of $10.7 billion. Lockheed Martin (LMT)Source: Chart courtesy of StockCharts.com Lockheed Martin (NYSE:LMT) shares are blasting to new highs, exiting a multi-month consolidation range going back to September. The company pays a 2.5% dividend yield and continues to enjoy the benefits of the rollout of the F-35 Joint Strike Fighter program.The company will next report results on Jan. 28. Analysts are looking for earnings of $5.01 per share on revenues of $15.3 billion. Raytheon (RTN)Source: Chart courtesy of StockCharts.com Missile maker Raytheon (NYSE:RTN) is also breaking to new highs, pushing closer to the $230 level as it further stretches away from its 200-day moving average. The company pays a 1.7% dividend yield.When the company next reports results, analysts are looking for earnings of $3.12 per share on revenues of $8 billion. The company was recently awarded a nearly $1 billion U.S. Air Force contract for missile production. United Technologies (UTX)Source: Chart courtesy of StockCharts.com Shares of United Technologies (NYSE:UTX) are pushing up and out of a two-month trading range in a push up and over prior highs set back in early 2018. The company pays a 2% dividend yield.When the company next reports results, analysts are looking for earnings of $1.84 per share on revenues of $19.4 billion.As of this writing, William Roth did not hold any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy to Kick Off the New Year * 7 Buyout Targets to Watch For 2020 * 9 Boring Stocks to Buy You Should Never Let Go Of The post 4 Strong Defense Stocks to Buy on 'War Against Iran' Headlines appeared first on InvestorPlace.
General Electric is making major changes after a brutal couple of years. Here is what the fundamentals and technical analysis say about buying GE stock now.
Shares of Northrop Grumman on Friday are among the few stocks to gain on Friday as investors react to escalating tensions between Iran and the U.S. in the aftermath of the killing of Iranian Major General Qassem Soleimani.
Broad U.S. equity markets open lower, but well above the levels that the pajama crew had placed equity index futures through the dark hours of Friday morning. Right now, the firm is somewhat difficult to understand.