Boeing Stock Rises After Pentagon Picks It for Navy Fighter

This article first appeared on GuruFocus. Boeing (NYSE:BA) rose 1.78% in premarket after the Pentagon said it had selected the company to build the US Navy's next-generation stealth fighter, beating Northrop Grumman (NYSE:NOC). The development contract to produce test aircraft is worth $20 billion, and the program could grow to hundreds of billions over its lifetime as production ramps up and international customers potentially place orders. Northrop shares fell 4.29% in premarket. Warning! GuruFocus has detected 2 Warning Signs with BA. Is BA fairly valued? Test your thesis with our free DCF calculator.