Why Boeing (BA) Stock Is Up in After-Hours Trading Today

NEW YORK (TheStreet) -- Boeing (BA) was gaining 0.5% to $127.93 after-hours Tuesday after NASA confirmed the company and SpaceX won a contract to build "space taxis."

NASA will use the "space taxis" to fly U.S. astronauts to the International Space Station, ending the reliance on Russia for trips to the station.

Boeing and SpaceX will split up to $6.8 billion in funding to build the spacecraft, according to Bloomberg. Under the contract, Boeing will earn a maximum of $4.2 billion and SpaceX will earn a maximum of $2.6 billion.

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"We are one step closer to launching our astronauts from U.S. soil on American spacecraft and ending the nation's sole reliance on Russia by 2017," NASA Administrator Charlie Bolden said. "Turning over low-Earth orbit transportation to private industry will also allow NASA to focus on an even more ambitious mission -- sending humans to Mars."

TheStreet Ratings team rates BOEING CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate BOEING CO (BA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."

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