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Here's Why You Should Add Maxar Stock to Your Portfolio Now

Shares of Maxar Technologies Inc. MAXR have risen 122.6% in the past six months compared with 9.2% growth of the industry. Currently, the stock carries a Zacks Rank #2 (Buy) and has a VGM Score of B.



In the June-ended quarter, the Westminster, CO-based company delivered a positive earnings surprise of 100%. The Zacks Consensus Estimate for its current-year earnings has been revised 281% upward over the past 60 days.

Business Drivers

Maxar’s growth strategy is focused on providing leading capabilities in Earth Intelligence and Space Infrastructure. The company is seeing strong demand as customers continue to rely on it for national security and commercial missions. Maxar is making progress on multi-year strategy to position itself for sustained revenue, earnings and cash flow growth.

The company is executing well its strategic priorities for 2020 while responding to the COVID-19 situation. It has hired space industry veteran Jim McClelland to lead its newly established Mission Architecture function. McClelland will play a key role in Maxar’s initiative to diversify the Space Infrastructure business and further penetrate U.S. civil and national security markets.

Maxar has been selected by the U.S. Army Geospatial Center to deliver multiple highly portable, direct-downlink tactical ground systems that provide critical geospatial intelligence to users in remote locations. It has secured a sole-source, indefinite-delivery/indefinite-quantity contract valued at up to $49 million over eight years, and two initial task orders worth a combined value of $8 million.

Maxar will build the Galaxy 37 geostationary communications satellite for Intelsat — operator of the world’s largest integrated satellite and terrestrial network. Galaxy 37 is the sixth Intelsat geostationary communications satellite awarded to Maxar in 2020.

On Apr 8, Maxar completed the sale of the MDA business to Neptune Acquisition for $729 million. On Jul 1, it concluded the buyout of 3D data and analytics firm, Vricon, for almost $140 million.

The company inked contracts with the U.S. National Geospatial-Intelligence Agency to deliver land cover classification and change detection services through a combination of the Janus Geography program and the General Services Administration’s IT Schedule 70. It has been selected to support Dynetics, a wholly owned subsidiary of Leidos, in designing and building a Human Landing System for NASA’s Artemis program, which will send the first woman and the next man to the Moon by 2024.

Other Key Choices

Some other top-ranked stocks in the broader industry are Corning Incorporated GLW, Vocera Communications, Inc. VCRA and Acacia Communications, Inc. ACIA, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Corning delivered a trailing four-quarter positive earnings surprise of 39.9%, on average.

Vocera delivered a trailing four-quarter positive earnings surprise of 70%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.

Acacia pulled off a trailing four-quarter positive earnings surprise of 17%, on average. The company’s earnings topped the consensus estimate in three of the last four quarters.

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