Back to top

Analyst Blog

Aerospace and defense major Raytheon Company (RTN - Analyst Report) has been awarded a $9.9 million contract by Pentagon to continue with research and development work on Border Tunnel Activity Detection Systems in Egypt.  The contract is provided under an Egyptian Foreign Military Sales Letter of Agreement with the U.S. Army Corps of Engineers.

On detection, the Egyptian authorities will plug these tunnels which were abused by terrorists to smuggle arms across the border into Gaza for use against Israel. According to rough estimates, nearly 2,000 tunnels still exist in the Egypt and Gaza border.

Raytheon possesses advanced technology in detecting tunnels. In Apr 2009, the company received a $19 million contract from the Defense Advanced Research Projects Agency for the development and demonstration of technology to detect and locate buried land mines and tunnels.

The Egyptian government is also taking due steps to destroy these tunnels and, as per directives issued by the Cairo court, it has already destroyed a few of the existing tunnels. However, a good number of them still remain. The primary problem is their detection,  as these tunnels are concealed very craftily.

Raytheon with its advanced sensor technology and MONARCH-equipped sensor on the Seismic and Acoustic Vibration Imaging program will be able to detect more tunnels, invisible to human eyes. The destruction of these tunnels will be a major counter-terrorist move, easing to some extent the violence that has despoiled the region.

This contract is a part of an $801 million contact award made by the Pentagon on Aug 28, 2013. Other publicly traded companies receiving minor contracts included Southern Company (SO - Analyst Report) and Valeant Pharmaceuticals (VRX - Analyst Report) among others. A Southern Company unit received a contract worth $16.1 million to supply power to different agency locations in California. Through a $13.5 million contract, Valeant will supply various medicines and surgical items in different agency locations in California.

Raytheon presently carries a short-term Zacks Rank #2 (Buy). Another leading defense operator, Lockheed Martin Corporation (LMT - Analyst Report), is also performing well and shares the same Zacks Rank.

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%