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Raytheon Company (RTN - Analyst Report) received a $115.9 million contract extension from the U.S. Army Aviation and Missile Command for the delivery of engineering support services to the Patriot Air and Missile Defense System. The original contract was awarded in the first quarter of 2013.

Patriot missile upgrades will be carried out by Raytheon at the Integrated Air Defense Center in Andover, Mass.; IDS Headquarters in Tewksbury, Mass.; the Warfighter Protection Center in Huntsville, Ala.; and the Mission Capability Verification Center in White Sands, N.M.

Under the contract, Raytheon will continue to offer improved capability support which includes system analysis, software advancement, testing and logistics support and other country-specific system needs. Raytheon intends to upgrade the Patriot Missiles to better equip the U.S. Army and Foreign Military Sales customers to meet evolving threats.

Raytheon is a key contractor of the Patriot missiles both in the U.S. and internationally and is the system integrator for Patriot Advanced Capability-3 missiles. The patriot missiles have revolutionized defense systems all over the world with North American Treaty Organization and 12 Patriot partners currently relying on the Patriot system for protection against outside forces. However, the number might rise as negotiations with Kuwait for the Patriot system are nearing completion.

The Post Deployment Build-7 is the latest software addition to the Patriot Missile and Defense systems. This will provide cutting edge capabilities to soldiers by leveraging the Patriot Configuration-3 hardware modernization in the radar and battle management command, control, communication, computers, and intelligence areas.

Recently, the company was able to secure sizeable contracts from the Department of Defense of which the biggest was valued at $534.8 million for the production of Advanced Medium-Range Air-to-Air Missiles for the U.S. Air Force and the militaries of Oman and Saudi Arabia.

The series of contracts will certainly prove beneficial for Raytheon and will enable the company to maintain a stable earnings stream amidst the current budget sequestration in the U.S. At present, Raytheon retains a Zacks Rank #2 (Buy).

Other stocks looking good are Zacks Ranked #1 (Strong Buy) Erickson Air-Crane Inc. (EAC - Snapshot Report) and Zacks Ranked #2 (Buy) Wesco Aircraft Holdings, Inc. (WAIR - Snapshot Report) as well as Alliant Techsystems Inc. (ATK - Analyst Report).

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