Back to top

Analyst Blog

Lockheed Martin Corporation (LMT - Analyst Report) has clinched a $320 million contract from the Air Force to provide enhanced communications reliability, survivability, and information capabilities.

Per the contract, Lockheed Martin will run the Air Force’s Network Command Center, an IT communications network used by Air Force personnel in Washington, DC. The company will provide the network center with enterprise applications and desktop support and projects, plans and engineering services. It comprises desktop support, enterprise applications, plans, projects and engineering services, and National Military Command Center (NMCC) support.

Bethesda, MD-based Lockheed Martin is a security and aerospace company engaged in the research, design, development, manufacture, and integration of defense products. One of the basic parameters is innovation, which allows Lockheed to stay ahead in the race. This guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs.

So the threat of sequestration notwithstanding, the diverse product offerings, strong program execution and cost reduction measures will help the company to sustain its profitability. Lockheed Martin has significant upside potential based on the Obama administration’s focus on ISR, unmanned systems, force protection, cyber security, and missile defense.

The company secured a series of international contracts which will likely boost Lockheed Martin’s growth opportunities. Recently, the joint establishment of Lockheed Martin and Northrop Grumman Corp. (NOC - Analyst Report), LONGBOW Limited Liability Company, received a $90 million contract from Saudi Arabia for the supply of LONGBOW Fire Control Radars (FCRs) for their AH-64 Apache Attack Helicopters.

Lockheed currently retains a Zacks Rank #3 (Hold). Other companies in the industry worth considering are Erickson Air-Crane Inc. (EAC - Snapshot Report) and The Boeing Company (BA - Analyst Report). Erickson Air-Crane presently has a Zacks Rank #1 (Strong Buy) while Boeing holds a Zacks Rank # 2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%