Zacks Industry Rank Analysis Highlights: Boeing, Lockheed Martin, Northrop Grumman, Precision Castparts and Rockwell Collins.CHICAGO -- Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week's analysis include Boeing (NYSE NYSE See: New York Stock Exchange : BA), Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. (NYSE: LMT LMT left mentotransverse (position of fetus). ), Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. (NYSE: NOC (Network Operations Center) A central or regional location for monitoring a large network. Also called a "network management center" (NMC), "service management center" (SMC) or "network control center" (NCC), a NOC may be used to manage a large enterprise network, ), Precision Castparts (NYSE: PCP PCP abbr. 1. phencyclidine 2. primary care physician Pneumocystis carinii pneumonia (PCP) ) and Rockwell Collins Rockwell Collins, Inc. (NYSE: COL) is a large United States-based international company headquartered in Cedar Rapids, Iowa, primarily providing aviation and information technology systems, solutions, and services to governmental agencies and aircraft manufacturers. (NYSE: COL). To see the Zacks Industry Rank and the trend in earnings estimates revisions for all 208 industry groups, visit http://at.zacks.com/?id=3154. Zacks Industry Rank Analysis is written by Charles Rotblut, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. , Senior Market Analyst for Zacks.com. Boeing's (NYSE: BA) report yesterday morning highlighted the positive business momentum occurring in the Aerospace sector. BA generated adjusted fourth-quarter earnings of $1.16, easily surpassing expectations for profits of 97 cents. Strength in both the company's defense and commercial aircraft units drove revenues up 26% to $17.54 billion. The company raised its 2007 earnings guidance by 10 cents to a range of $4.55 to $4.75 per share, though the consensus estimate, as of this morning, was at $4.77. Regular readers will know that Aerospace has continuously either had the best or one of the best Zacks Sector Ranks for several months. Higher government spending Government spending or government expenditure consists of government purchases, which can be financed by seigniorage, taxes, or government borrowing. It is considered to be one of the major components of gross domestic product. is playing a material role and the Democratic-led congress is unlikely to cut the defense budget ahead of the 2008 elections. (It should be noted, however, that there has recently been some calls to tighten the purse strings purse strings or purse·strings pl.n. Financial support or resources, or control over them: the politicians who control federal purse strings; tightened the corporate purse strings. in regards to the war in Iraq.) Healthy demand for commercial aircraft and parts is also helping to drive earnings. A total of 11 aerospace companies within the Zacks Rank universe (a) have reported fourth-quarter results, including BA. Nine have topped expectations, one has met and one has missed. The two primary industry groups in the Aerospace sector are Aerospace/Defense and Aerospace/Defense Equipment. BA is classified in Aerospace/Defense along with Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC). All are Zacks #2 Rank ("buy") stocks. Like BA, LMT and NOC topped expectations and raised their guidance. Lockheed Martin generated fourth-quarter earnings of $1.64, 19 cents above expectations. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight rose 6% to $10.8 billion. Looking ahead, LMT raised its profit guidance for 2007 to between $5.80 to $6.00 per share, from a range of $5.60 to $5.80 per share. Ten of the 15 covering analysts raised their forecasts in response, causing the consensus estimate to rise by 14 cents to $6.02 per share. Northrop Grumman earned $1.29 in the fourth quarter, besting expectations by three cents. Revenues rose 5% to $8 billion. NOC raised its profit guidance to between $4.80 and $5.05 per share, from a range of $4.65 to $4.90 per share. Ten of the 17 covering analysts adjusted their forecasts in response, causing the consensus estimate to rise by nine cents to $4.93 per share. The Aerospace/Defense Equipment group contains four Zacks #1 Rank stocks ("strong buy"), including Precision Castparts (NYSE: PCP) and Rockwell Collins (NYSE: COL), and five Zacks #2 Rank stocks. Precision Castparts recently topped fiscal third-quarter expectations by three cents with earnings of $1.29 per share. Revenues jumped by more than 60%, driven by aerospace demand for specialty metals. The combination of the strong performance, favorable industry conditions and upbeat comments by CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Mark Donegan led brokerage analysts to raise their forecasts for both fiscal 2007 and fiscal 2008. The new fiscal 2007 consensus estimate calls for profits of $4.24, an increase of 24 cents from a week ago. The new fiscal 2008 forecast calls for profits of $5.21, an increase of 49 cents from a week ago. Rockwell Collins generated fiscal first-quarter profits of 84 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , 11 cents above expectations. Revenues rose 13%, aided by both higher government spending and a material increase in commercial aircraft equipment. COL expects growth in its commercial division to continue to be a primary driver of overall earnings and raised its full-year guidance as a result. The company now anticipates that fiscal 2007 profits will be in a range of $3.25 to $3.35, versus its previous guidance for profits of $3.10 to $3.20 per share. Ten of the 13 covering brokerage analysts raised their forecasts in response, causing the consensus estimate to rise 16 cents to $3.34 per share. The interactive Zacks Industry Rank List allows you to see all of the companies, and their Zacks Rank, within more than 200 industries. See the list at http://at.zacks.com/?id=3208. (a)The Zacks Rank is assigned to companies with earnings estimates made available by brokerage analysts. The Zacks' database contains earnings estimates for approximately 4400 companies. About Zacks Industry Rank and the Zacks Rank Zacks Industry Rank is calculated by averaging the Zacks Rank for all covered companies within a given industry. The Zacks Rank is assigned to approximately 4400 stocks and ranges from #1 ("Strong Buy") to #5 ("Strong Sell"). Both the Zacks Industry Rank and the Zacks Rank are quantitative indicators designed to cover periods of 1-3 months. Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank stocks have generated an average annual return of +31.8%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 143.6% annually (+4.8% vs. +11.8%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively. Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the market. Subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; this free newsletter today by visiting http://at.zacks.com/?id=2564. About Zacks Zacks.com is a property of Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. , Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=2565. Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. (a)The Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect the reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. of dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money. (b)The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , and represents the gross returns before management fees. Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual to buy or sell any security. |
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