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The largest U.S. defense operator Lockheed Martin Corporation (LMT - Analyst Report) recently received two contracts from the Department of Defense (DoD). Together these contracts fetched $24.1 million and are part of number of contracts awarded by the DoD on Jan 2.

The largest among these two defense contracts is worth $14.4 million. Per the contract, Lockheed will produce one Mission Signal Processor equipment suite and two array simulator cabinets in support of the Aegis Training and Readiness Center.

The second contract is worth $9.7 million. This is for a modification to the previously awarded contract (N00024-11-C-5302) for MK 41 Vertical Launching System AEGIS Modernization module electronics production.

Recently, Lockheed received a $574.5 million order to build the Aegis weapon system for the U.S. Navy. Aegis weapon system will enhance the capability of the Navy, as it can defend beyond its line of sight by integrating data from a remote sensor to intercept a target.

Although small, these new contracts are logical extensions to the previous contracts. The proper training of personnel in the new weapon system is essential, which enables them to use it effectively during a combat.

In the past seven days, Lockheed has received a series of contracts from the DoD. The combined value of those contracts exceeded $1 billion. These defense deals bear testimony to the cutting edge technology and the wide range of products at the disposal of Lockheed.

Apart from Lockheed, defense operator Northrop Grumman Corporation (NOC - Analyst Report) also received a defense contract worth $12.1 million from the U.S. Navy. Per the contract, the company will procure 11 AN/APR-39D(V)2 test assets for various naval aviation platforms, including testing support and travel costs.  

Lockheed currently has a Zacks Rank #2 (Buy). Other players in the aerospace/defense sector, which look attractive at current levels, include Huntington Ingalls Industries, Inc. (HII - Snapshot Report) and Alliant Techsystems Inc. (ATK - Analyst Report). All these stocks carry the same rank as Lockheed.

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