Science & Technology
Science and Technology
Science and Technology
Mon, October 4, 2010
Sat, October 2, 2010
Fri, October 1, 2010
Thu, September 30, 2010
Google, The Boeing Company, Lockheed Martin, Northrop Grumman and EMBRAER - Empresa Brasileira de Aeron
CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Google (Nasdaq: [ GOOG ]), The Boeing Company (NYSE: [ BA ]), Lockheed Martin Corporation (NYSE: [ LMT ]), Northrop Grumman Corporation (NYSE: [ NOC ]) and EMBRAER - Empresa Brasileira de Aeron (NYSE: [ ERJ ]).
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Here are highlights from Wednesdaya™s Analyst Blog:
Is There an Evil Side to Google?
Is there an evil side to Google (Nasdaq: [ GOOG ])? The company, which changed the way we define the Internet, appears to be increasingly attracting bad publicity as it enters the 13th year of its eventful journey. A rising number of lawsuits and accusations against the search giant are throwing bad light on Googlea™s do-no-evil image.
Regulators too have their eyes on Googlea™s business practices, as the company is repeatedly accused of killing competition and misusing its size and influence to muscle out smaller rivals. Is Google really evil?
Maybe not, because the company was set up with the mission of helping people find what they want. In most cases, it is Googlea™s growing popularity that seems to be the bone of contention. Save for a few lawsuits that may or may not lack substance, most cases appear to be an attempt to milk Googlea™s cash-rich balance sheet.
Undoubtedly, Google has set a very high standard for itself and as it gets there it is making some enemies in the process. Users, on the other hand, do not seem to mind when most of the services that the company offers come gratis.
Notwithstanding loudly professed claims that Googlea™s leanings are not idealistic and that the company tries to put its politically correct foot forward, the quality of its search results, the free email service and free mapping software all help make life easy and smooth. However, that is where some of the problems seem to emanate.
In an attempt to collate the worlda™s information and offer it through specific searches, the company ends up storing information about users that vexes advocates of privacy. Is it Googlea™s way of monopolizing the Web or simply its fascination with size?
Rush of Orders for Boeing
The Boeing Company (NYSE: [ BA ]) has been awarded a $5.3 billion, multi-year procurement (MYP) contract for 124 fighter aircrafts from the U.S. Navy. Under the terms of the agreement, Boeing will deliver 66 F/A-18E/F Super Hornet and 58 EA-18G Growlers to the Navy from 2012 through 2015.
The new contract is the third multi-year agreement between Boeing and the Navy for production of the F/A-18E/F, the Navy's frontline strike fighter, which delivers forward-deployed air combat capability around the world from the decks of 11 U.S. Navy aircraft carriers.
The EA-18G, the United States' newest combat aircraft, conducts advanced airborne electronic attack (AEA) missions to support Navy and joint force requirements. The EA-18G is scheduled for its first combat deployment in the final phase of 2010.
Earlier, Boeing delivered 210 Super Hornets to the Navy during the initial F/A-18E/F MYP, between 2000 and 2004. Boeing was then awarded a second MYP that included aircraft procurement between 2005 and 2009. Aircraft deliveries under that contract continue through 2011 and totaled 257 aircraft.
Boeing has a unique position as the largest aircraft manufacturer in the world in terms of revenues, orders and deliveries, and one of the largest aerospace and defense contractors in the world. Also its revenues are spread across more than 90 countries around the globe.
Over the past month, Boeing shares were up 2.14%, but underperformed the S&P 500 Index, which was up 7.80% over the same period. The level of underperformance has widened as the month progressed mainly owing to near-term headwinds over 787 delays along with expected cutbacks over the U.S. defense budget. Still the company is trading at a wide premium in terms of forward earnings estimates compared to its large cap defense prime peers like Lockheed Martin Corporation (NYSE: [ LMT ]) and Northrop Grumman Corporation (NYSE: [ NOC ]). So we see limited scope for additional outperformance by Boeing in the near term and retain a Zacks #3 Rank (short-term Hold rating) on the stock.
In the short run we, however, favor the Zacks #1 Rank (short-term Strong Buy rating) EMBRAER - Empresa Brasileira de Aeron (NYSE: [ ERJ ]) owing to the strong support of the Brazilian government, diversification into broader defense and corporate jets, apart from a strong liquidity profile.
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