Bell-Boeing has recently signed a contract to support the sustainment of flight tests for the MV-22 variant of the V-22 tiltrotor family. Bell-Boeing is a joint venture between The Boeing Company BA and Bell Helicopter – a unit of Textron Inc. TXT. The work related to the transaction is expected to be completed by December 2019.

Of $ 23.2 million worth, the contract was awarded by the Navy Air Systems Command, Patuxent River, MD. Under the terms of the agreement, the joint venture will provide an analysis of flight tests, in addition to providing support for flight testing of five MV-22 aircraft. The agreement will serve the US Navy, the Air Force and the Government of Japan. The joint venture will complete the tasks in Patuxent River, Maryland.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "A brief note on the V-22 jets"data-reactid =" 13 ">A brief note on the V-22 jets

Bell-Boeing's flagship product, the V-22 Osprey, is a family of multi-mission tiltrotop military aircraft with both vertical and vertical take-off and landing capabilities. It is designed to combine the features of a conventional helicopter with the long-range and high-speed cruise performance of a turboprop aircraft. This military aircraft has the capacity to carry 24 combat troops or up to 20,000 pounds of inland freight or 15,000 pounds of external freight. Notably, the MV-22 is a variant of the V-22 Osprey.

In addition to wide use on the home front, this family of tiltrotors has been deployed in many missions abroad, including the evacuation of the wounded, tactical recovery of aircraft and personnel, assistance humanitarian / disaster relief, replenishment, VIP transport, and security cooperation in the theater.

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The proliferation of terrorist attacks around the world and the rise of the Islamic State have forced countries to strengthen their arsenal and increase their defense budget recently. The current US administration is also in favor of an increase in defense spending, contrary to the sequestration of the budget adopted by the previous government.

The defense budget of the 2019 US fiscal year, worth $ 716 billion, corroborates this fact. The financial plan includes a base budget of $ 617.1 billion, highlighting a 17.8% increase over the 2018 CR level. As a result, defense majors like Boeing and Textron should receive increased flow of Pentagon contracts for their high-end defense equipment. In fact, the last contract won by Bell-Boeing is the same.

We anticipate that such contracts will further enhance the performance of these two defense contractors and strengthen their respective short-term profit margins.

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In one year, Boeing's shares grew by about 11.3%, compared to 7% for the sector. This outperformance can be attributed to the company's record backlog that has supported revenue growth, increased commercial aircraft orders, and increased presence in domestic and international markets.

At the same time, Textron, action Zacks of rank 4 (sale), lost 19.9% ​​in one year, which is superior to the decrease of 7% observed by the sector. Underperformance can contribute to increased competition for the company in the defense sector.

The story continues

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Boeing is currently wearing a Zacks Rank # 2 (Buy From Other companies in the same sector include AeroVironment, Inc. AVAV and Teledyne Technologies Incorporated TDY, both ranked Zacks at Tier 1 (Strong Buy). the complete list of current stocks of Zacks # 1. "data-reactid =" 60 "> Boeing currently owns the Zacks Rank # 2 (Buy), and other companies in the same sector include AeroVironment, Inc. AVAV and Teledyne Technologies Incorporated TDY, each carrying the Zacks Rank # 1. Strong purchase You can see the complete list of current stocks of Zacks # 1.

AeroVironment has generated a positive average earnings surprise of 257.01% in the last four quarters. The Zacks consensus estimates for the 2019 fiscal year grew 8.8% in the north, to 1.48 USD over the last 90 days.

Teledyne Technologies had an average positive earnings surprise of 12.92% in the previous four quarters. Zacks Consensus estimates for 2019 increased 5.3% to $ 9 in the last 90 days.

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The Boeing Company (BA): Free Stock Analysis Report

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To read this article on Zacks.com, click here."data-reactid =" 64 ">
Do you want to know the latest Zacks Investment Research recommendations? Today, you can download 7 best actions for the next 30 days. Click to get this free report

The Boeing Company (BA): Free Stock Analysis Report

AeroVironment, Inc. (AVAV): Report of Analysis of Free Shares

Textron Inc. (TXT): Free Stock Analysis Report

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