lockheed is way to capitalize on defense spending as united tech, raytheon merge

by:INDUSTRIAL-MAN     2019-10-25
What do tariffs, Mexico, Europe and the defense industry have in common?
President Trump said on Twitter Saturday that,S.
Mexico has reached an agreement to avoid new tariffs.
Mexicans will send 6,000 soldiers to the southern border to slow down immigration in Central America.
The agreement supports the president\'s claim to weapons tariffs.
The strategy could go to Europe for the benefit of the United StatesS. defense sector.
Long before the 2016 presidential election, Trump promised that if elected, he would let Europeans pay their share for the defense spending of the North American Treaty Union.
When he met with NATO members in Brussels on May 2017, he reinforced that remark.
The president\'s statement, though rough, is basically correct.
NATO defense ministers set a guideline in 2006 that requires member states to spend 2% of their GDP on defense every year. The non-
The binding tag appeared in the United States. S.
Invest heavily in the war in Iraq and Afghanistan
When Russia annexed Crimea in 2014, NATO leaders gave more support.
Heads of state must sign an agreement to achieve the 2% target by 2024.
Only five of the 28 member states have achieved this goal today: the United StatesS.
Greece, Britain, Estonia and Poland.
Just like Mexico and border security, President Obama may threaten Europe with new tariffs to increase defense spending for NATO countries.
On August 2018, the president told supporters at a rally in West Virginia that he would impose a 25% tax on every car entering the United States, a foreshadowingS.
From the EU.
The president believes that tariffs are an effective weapon that forces countries to yield to his demands.
The aerospace and defense department executives received the message long ago.
They can see the obvious advantages of a better era and scale in the future.
PriceWaterhouseCoopers, the world\'s leading accounting and consulting firm, found that mergers and acquisitions within the industry reached $72 billion in 2017, surpassing the previous high set in 2015.
United Technologies on Sunday (UTX -Get Report)and Raytheon (RTN -Get Report)
They announced a merger of a heavy deal that would refocus the company on aerospace.
Working with Raytheon should be a boon for UTX shareholders.
Bring Pratt & Whitney jet engine business to Raytheon-
Partner of F-
35 manufacturer of fighter program and missile and aviation electronic equipment-
It is a natural cooperation with many synergies.
If the White House manages to increase defense spending in NATO countries, it is also the type of project that will ultimately benefit.
Lockheed Martin (LMT -Get Report)
This is another way for investors to be prepared.
In addition to being a leader in F-
35. Maryland is a pioneer in 3D printing, big data, space engineering and other important technologies for NATO allies.
As the world marvels at tiny satellites and reusable autonomous rockets, Lockheed engineers are busy pushing beyond the booster.
They want to build a satellite factory in space.
And it\'s not that far.
Looks very far-fetched.
On 2016, Lockheed printed 3D parts for Nasa\'s Juno Jupiter orbiter.
Two years later, the United States launched another satellite. S.
The air force was designed and manufactured using a 3D printing technology called laser powder bed fusion.
The robot arm placed a layer of aluminum powder precisely.
A laser guided by a digital file then melts the powder to form a custom part.
This process reduces production cycles and costs.
3D printing satellites in space will offset the need for expensive rocket launches.
The same is true of Lockheed engineers in solving cyber security issues.
They have been collecting, analyzing and using data to capture status for decades --
Sponsored hackers
In the new digital age, this technology is more popular than ever before.
Meanwhile, its defense business remains strong.
The company received a $1 bonus.
8 billion contracts in the United StatesS.
Air Force June 7, to develop the change of Lightning II, F-35 fighter jet. Sales shot 7.
It rose 6% in 2018 to a record $53. 7 billion.
Profits jumped 167% to $5 billion.
The 5-year average of return on investment capital is an astonishing 31%.
Shares of Lockheed have been rising 35 this year.
7%, and increased by 0 respectively. 8% to $355. 23 in pre-
Market trading on Monday.
Strength has raised the stock to 14.
3 times the forward return and 1. 7x sales.
The market value is now $100 billion.
While this momentum is strong, the best is yet to come, especially if the government continues to push NATO countries to increase their defense spending.
Investors should consider taking advantage of any weaknesses in the coming months to increase new long-term investmentsterm positions.
Based only on sales growth and internal momentum, stocks can trade to $500 in two years, 40% higher than the current level.
* To learn more about Jon Markman\'s stock options at the crossroads of culture and technology, check out his daily investment Communications strategic advantages.
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