Boeing Secures a $2.8B Contract to Aid the Evolved Strategic Satellite

The Boeing Company (BA) recently clinched a contract involving the Evolved Strategic Satellite (ESS) program. The award has been provided by the Space Systems Command, Military Communication and Positioning, Navigation and Timing, Los Angeles Air Force Base, CA.Details of BA’s DealValued at $2.84 billion, the contract is expected to be completed by Dec. 31, 2033. Per the terms of the deal, BA will develop and produce four ESS space vehicles, which will provide increased capacity, flexibility, reliability and resilience compared with the strategic communications satellites currently in orbit. The work related to this contract will be performed in El Segundo, CA.What’s Favoring BA Stock?In the modern era of space exploration, factors like rapid technological advancements, the growing demand for satellite deployment, increasing commercial space activities and rising investments in space infrastructure are fueling the growth of the space launch services market.This must have prompted the Mordor Intelligence firm to estimate that the global space launch vehicles market will witness a compound annual growth rate of 18.4% during the 2025-2030 time period.Such robust market growth prospects are expected to benefit Boeing in the form of space technology-involved contracts like the latest one. BA has decades of experience supporting major U.S. space missions while actively contributing to both government and commercial projects. Notably, the ESS will provide persistent coverage to strategic warfighters worldwide. Moreover, Boeing's CST-100 Starliner spacecraft is a key part of returning human launch capabilities to U.S. soil.Opportunities for Other Space StocksOther companies that are expected to enjoy the perks of the expanding global space launch vehicles market have been discussed below.Northrop Grumman Corporation (NOC): It is one of the key players in the space industry, providing launch vehicles and propulsion systems through its space systems division. The company's innovations in rocket technology and satellite deployment make it a significant beneficiary of the growing demand for space services.The company’s long-term (three to five years) earnings growth rate is 3.3%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 2.8%.Rocket Lab USA Inc. (RKLB): Rocket Lab, with its advanced Electron rocket and expanding capabilities in small satellite launches, has already established itself as a prominent launcher in the space services market. It is currently developing the Neutron rocket, aimed at supporting larger payloads, thereby boosting its competitiveness in the medium-lift launch segment.The Zacks Consensus Estimate for RKLB’s 2025 sales indicates year-over-year growth of 32.8%. The consensus estimate for 2025 earnings indicates year-over-year growth of 29%.Lockheed Martin Corporation (LMT): Its space business segment plays a key role in areas such as satellite technology, missile warning systems and deep space exploration. Lockheed Martin built NASA’s first Mars lander and has been part of every NASA Mars mission since.The company has a long-term earnings growth rate of 10.5%. The Zacks Consensus Estimate for LMT’s 2025 sales indicates year-over-year growth of 4.7%.BA Stock’s Price MovementBA shares have risen 27.3% in the past six months compared with the industry’s 22% growth.Image Source: Zacks Investment ResearchBA’s Zacks RankBA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Rocket Lab Corporation (RKLB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks