This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Boeing Stock Takes Off On New Defense Contracts

Stocks in this article: BA ERJ GD HII LMT NOC

Antonio Alfonso, Kapitall: Boeing stock is up two days in a row thanks to new contracts. What's next for the aerospace giant? 

Boeing (BA), has been making some major moves and winning some solid contracts, which may help the company and investors alike. The company’s stock rose as Boeing’s latest jet, the 787-9 Dreamliner, takes its first test flight today.

[Read more from Kapitall: 5 Undervalued Stocks Intruiging Institutional Investors]

The 787-9 Dreamliner, larger and able to fly farther than the current model, has been ordered by airlines eagerly awaiting a plane that should help them increase revenues. If all goes well, Boeing could begin reaping profits from the 853 orders it’s received, totaling over $146 billion. Monday brought the news that a Boeing subsidiary which makes unmanned aerial vehicles (UAVs), had also won a major defense contract.

Worth  $300 million, the indefinite quantity contract runs through 2016 and tasks Boeing with providing hardware and service in support of US Special Operations Command’s UAVs. This contract is the biggest of multiple wins for Boeing, which includes two additional contracts totaling an extra $30 million. Perhaps even more exciting is the recent news that  Boeing has emerged as the sole eligible bidder to help replace South Korea's aging aerospace fleet. 

Though Boeing’s more inexpensive bid helped it get this far, some analysts have mentioned that South Korea (paywall) should instead be looking at stealth technology, especially consiering the threat that North Korea still poses. But South Korea’s defense minister has stated other military capabilities are important too, and the bid’s low price tag has won some major support. Keeping true to its most recent motto, Boeing is pursuing new frontiers by working closely with NASA on its Commercial Crew Program, which aims to develop a system transporting astronauts to the International Space Station.

Boeing recently tested an interface alongside Mission Control Center (MCC) at Johnson Space Center in Houston, which will help astronauts in Boeing’s CST-100 capsule to communicate with MCC. Boeing shows good signs of progress with the Commercial Crew Program and is on track to complete all 20 milestones by summer 2014.

While many things are going well for Boeing, some challenges and threats to the company remain. A recently launched lightweight passenger jet from Bombardier (OTC:BDRPF) completed a successful test flight Monday. The Canadian manufacturer is poised to give both Boeing and Airbus (an EADS subsidiary) a run for their money, having already won a contract with a Latvian airline.

Do you think Boeing stock will continue to rise?

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,790.06 +11.91 0.07%
S&P 500 2,065.60 +4.37 0.21%
NASDAQ 4,755.7450 +7.3490 0.15%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs