Boeing (BA) has significantly outperformed in the Aerospace/Defense sector over the past year and is poised for a strong 2019. The defense giant has just been awarded a $26.7 MM contract to provide maintenance and technical support for the Trident II D5 missile over the next two years at its facilities in Huntington Beach, CA and Heath, OH.
The Trident II (D5) is a long range missile equipped on submarines since the early 1990s. It remains a critical piece of ordnance for both the US and the UK. It is capable of being launched from under the surface of the ocean and delivering multiple, separately-targeted warheads. Its guidance and delivery systems are constantly upgraded as technology evolves, and the missiles are intended to remain in service for at least another decade.
The United States defense budget has been approved for an increase of 5% in 2019, totaling $717 billion, which could contribute to strong years for Beoing (BA), Lockheed Martin (LMT), Huntington Ingalls Industries (HII) and other defense contractors.