NEW YORK (TheStreet) -- General Electric (GE) - Get Report shares are up on 0.1% to $30.11 in Thursday's pre-market trading session after South Korea selected the multinational conglomerate as the preferred bidder to supply engines for its next-generation fighter jets.
The value of the deal, estimated to be around $3.5 billion, makes GE the big winner over Eurojet Turbo GmbH, a European engine maker. The country picked the F414-GE-400 engines instead of the Eurojet EJ200.
This is part of South Korea's Korean Fighter Experimental (KF-X) project, which was launched early last year. Seoul is planning to replace its old fleet of F-4s and F-5s as part of the country's most ambitious weapons-development programs, the Wall Street Journal reports.
The leaders of the project will be a consortium of Korea Aerospace Industries, which makes military aircrafts, and Lockheed Martin (LMT), its technology-support partner.
According to South Korea's Defense Acquisition Program Administration, the decision was finalized today and a final contract is expected to be signed next month.
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Separately, General Electric has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's revenue growth, solid stock price performance and impressive record of earnings per share growth, which offsets generally higher debt management risk, weak operating cash flow and poor profit margins.
You can view the full analysis from the report here: GE
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.