Back to top

Analyst Blog

Aerospace and defense operator General Dynamics Corp. (GD - Analyst Report) received a $562.2 million contract from the U.S. Department of Defense (DoD) to supply Ground Mobility Vehicles 1.1 (GMV 1.1), a modified Humvee. This contract is a part of 17 contracts worth above $1.4 billion awarded by the DoD on Aug 22.

Ground Mobility Vehicles 1.1 will feature a heavier suspension, more powerful engine, more rugged tires, improved ground clearance, and an open bed that is used by the U.S. Special Forces.

These vehicles will be used by defense personnel for support operations such as direct action, special reconnaissance, unconventional warfare, counter-terrorism, security force assistance and counterinsurgency (COIN) missions. The U.S. defense forces often have to operate in difficult terrain and extremely hostile conditions to counter terrorism and neutralize high value targets. The vehicle will provide a tactical advantage to defense personnel in combat.

General Dynamics' Ordnance and Tactical Systems division will be looking after the delivery of the vehicles. These vehicles will be highly mobile and could be transported by a Chinook helicopter. The production contract is expected to run for seven years and conclude in Sep 2020, ensuring a steady flow of revenue.

The company registered a positive earnings surprise of 11.73% in the second quarter. The positive results and consistent contract wins have driven the Zacks Consensus Estimate for 2013 2.9% higher in the last 30 days to $6.96 per share, reflecting  year-over-year growth of 7.3%.

General Dynamics currently retains a Zacks Rank #2 (Buy). The long-term earnings growth of the company is 5.57% on the back of sales growth of 1.31%.

Some of its main competitors, Lockheed Martin Corp. (LMT - Analyst Report), Northrop Grumman Corp. (NOC - Analyst Report) and The Boeing Company (BA - Analyst Report) also carry a Zacks Rank #2.
 

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
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%