CHICAGO, May 21, 2014 /PRNewswire/ -- 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 the Lockheed Martin Corp. (NYSE:LMT-Free Report), Alliant Techsystems Inc. (NYSE:ATK-Free Report), Huntington Ingalls Industries, Inc. (NYSE:HII-Free Report), Northrop Grumman Corp. (NYSE:NOC-Free Report) and Raytheon Co. (NYSE:RTN-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday's Analyst Blog:
Defense Industry Stock Performance Update
FMS or the shorthand for Foreign Military Sales was the key for the defense sector last week with sales of $1 billion promised to Iraq. In spite of this, investors remained unimpressed as budget cuts continued to impact the order book of big contractors, leading to big sell-offs in many names. Yet, the sector is trying to plug the challenges with acquisitions and business diversifications besides boosting international orders.
Among the important updates last week, Pentagon's Defense Security Cooperation Agency has given the green signal for almost $1 billion of military hardware sales to Iraq. Lockheed Martin Corp. (NYSE:LMT-Free Report) – the largest defense contractor – seems to have gained the most from last week's DoD funding list, grabbing a chunk of various big as well as small ticket programs.
Again, Alliant Techsystems Inc. (NYSE:ATK-Free Report) came up with bright earnings results, surpassing the Zacks Consensus Estimate on both lines.Huntington Ingalls Industries, Inc. (NYSE:HII-Free Report), originally an affiliate of Northrop Grumman Corp. (NYSE:NOC-Free Report), now has plans to take over a provider of engineering and project management services, UniversalPegasus International, to diversify into the energy market.
Recap of the Week's Most Important Stories
1. The Pentagon has cleared about $1 billion worth of light-attack planes, surveillance aerostats and up-armored Humvees for the Iraqi military. The major part of the deal comprises 24 Beechcraft AT-6C Texan II attack aircraft, associated equipment spares and repair parts and other support. The turboprop aircraft and related services and equipment are estimated to cost $790 million.
In the second part of this potential FMS contract, Iraq requested an estimated $101 million of M1151A Up-Armored Humvees and associated support. AM General will likely be the prime contractor for this award. Additionally, the deal also comprises the potential sale of aerostats and Rapid Aerostat Initial Deployment tower systems and associated support for $90 million. Raytheon Co. (NYSE:RTN-Free Report) will pick up this contract for seven 17-meter aerostats and 14 Rapid Aerostat Initial Deployment Tower systems and support.
2. Lockheed Martin secured a handful of contracts in the past one week. The largest of these contracts was not surprisingly an FMS valued at $212.3 million for offering modification services to the Patriot Advanced Capability-3 (PAC-3) Missile Support Center to prominent customers like Japan, Taiwan, Germany, Netherlands, Kuwait, and the United Arab Emirates. Lockheed Martin Aeronautics Company won a $101.9 million modification contract from the DoD also under its FMS program (read more: Lockheed Martin Wins $101.9M DoD Contract).
3. Alliant Techsystems reported fourth-quarter fiscal 2014 earnings results. Its adjusted earnings of $2.59 per share surpassed the Zacks Consensus Estimate by 7.9%. Quarterly earnings also surged 16.7% year over year, buoyed by higher revenues (read more: Alliant Beats Q4 Earnings & Revs).
4. In a striking move, Huntington Ingalls, noted for its nuclear and non-nuclear submarines, has entered into a definitive agreement to acquire UniversalPegasus International Holdings or UPI. The latter is a provider of engineering and project management services to the domestic and international energy markets. The deal marks Huntington Ingalls' entry into the oil and gas market (read more: Huntington Ingalls to Buy UPI).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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