A wide variety of vital business and defense functions are now conducted with the aid of satellite-borne systems. A leader in the art of manufacturing both the satellites and the rockets that put them into orbit is headquartered in Dulles, Virginia.

Orbital Sciences Corporation (NYSE: ORB) develops and manufactures small rockets and space systems for commercial, military, and civil government customers in the United States. The firm's low-level earth orbit, geosynchronous, and planetary satellites are used for communications, remote sensing, and scientific purposes. Its launch vehicles put satellites into orbit and are used in suborbital missile defense applications. The company also makes satellite-based transportation management systems for mass transit agencies. Major competitors include Boeing (NYSE: BA) and Lockheed Martin (NYSE: LMT).

Orbital Sciences pleased investors this week, when it reported Q2 EPS of 23 cents and revenues of $273.3 million. Analysts had been expecting 21 cents and $228.8 million. Management also guided FY07 EPS to 82-87 cents (82 cent consensus) and FY07 revenues to $975M-$1.00B ($923.95M consensus). The CEO cited solid growth in satellite, space systems and launch vehicle endeavors for the good quarter and strong new bookings for the optimistic outlook. Friedman Billings subsequently reiterated its "outperform" rating on the issue and raised its price target to $30. The stock popped on the news and has now entered the initial stage of a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the shares with three "strong buys", two "buys" and four "holds". Analysts see an eighteen percent average annual growth rate, through the next five years. The ORB Price to Sales ratio (1.54), Price to Book ratio (3.33), Sales Growth rate (38.73%) and EPS Growth rate (43.75%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 91 percent of the outstanding shares. Over the past 52 weeks, the stock has traded between $16.30 and $24.98. A stop-loss of $20.70 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.