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Lockheed Martin to Offer Sustainment Services for F-22 Jets
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Lockheed Martin Corporation’s (LMT - Free Report) aeronautics division, Lockheed Martin Aeronautics Co., has secured a modification contract from the Air Force Life Cycle Management Center, UT, for the sustainment of previously delivered F-22 aircraft. The contract is worth $22.3 million.
Contract Details
Lockheed Martin will provide follow-on agile sustainment services as per the F-22 Raptor’s annual requirements.
Work will be executed in Utah and Georgia with expected completion by Dec 31, 2017.
A Brief Note on F-22
The Lockheed Martin F-22 Raptor is the fifth-generation, single-seat, twin-engine, all-weather stealth tactical fighter aircraft that boasts a unique combination of stealth, speed, agility and situational awareness, along with lethal long-range air-to-air and air-to-ground weaponry.
However, high development costs, ban on exports, and development of the more versatile F-35 aircraft led to the discontinuation of F-22 production.
Price Movement
Lockheed Martin's stock has improved about 13.5% in the last one year, outperforming the Zacks categorized Aerospace/Defense industry's gain of 10.3%. This could be because the company continues to witness a steady flow of contracts from the Pentagon and other international customers.
Company Outlook
Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a regular inflow of follow-on orders from a leveraged presence in the U.S. Army, Air Force, Navy and IT programs.
During the third quarter, Lockheed Martin raised its ownership interest in the AWE Management Limited (AWE) venture, which operates the UK’s nuclear deterrent program, by 18%. As a result, the company currently holds a 51% controlling interest in the AWE venture. Looking forward, management expects this venture to contribute $400 million to sales in 2016 and around $1–$1.1 billion in 2017.
Zacks Rank & Key Picks
Lockheed Martin currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in this space include Engility Holdings, Inc. , Leidos Holdings, Inc. (LDOS - Free Report) and General Dynamics Corporation (GD - Free Report) .
On an average, Engility has delivered a positive earnings surprise of 23.19% in the trailing four quarters. The company's 2016 earnings estimates increased 13.4% over the last 60 days. Engility sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Leidos Holdings carries a Zacks Rank #2 (Buy). The company's 2016 earnings estimates increased 9.9% over the last 60 days. On an average, the company has delivered a positive earnings surprise of 12.20% in the trailing four quarters.
General Dynamics, a Zacks Rank #2 stock, delivered a positive earnings surprise of 5.55% in the trailing four quarters. The company's 2016 earnings estimates increased from $9.77 to $9.79 over the last 60 days.
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Lockheed Martin to Offer Sustainment Services for F-22 Jets
Lockheed Martin Corporation’s (LMT - Free Report) aeronautics division, Lockheed Martin Aeronautics Co., has secured a modification contract from the Air Force Life Cycle Management Center, UT, for the sustainment of previously delivered F-22 aircraft. The contract is worth $22.3 million.
Contract Details
Lockheed Martin will provide follow-on agile sustainment services as per the F-22 Raptor’s annual requirements.
Work will be executed in Utah and Georgia with expected completion by Dec 31, 2017.
A Brief Note on F-22
The Lockheed Martin F-22 Raptor is the fifth-generation, single-seat, twin-engine, all-weather stealth tactical fighter aircraft that boasts a unique combination of stealth, speed, agility and situational awareness, along with lethal long-range air-to-air and air-to-ground weaponry.
However, high development costs, ban on exports, and development of the more versatile F-35 aircraft led to the discontinuation of F-22 production.
Price Movement
Lockheed Martin's stock has improved about 13.5% in the last one year, outperforming the Zacks categorized Aerospace/Defense industry's gain of 10.3%. This could be because the company continues to witness a steady flow of contracts from the Pentagon and other international customers.
Company Outlook
Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a regular inflow of follow-on orders from a leveraged presence in the U.S. Army, Air Force, Navy and IT programs.
During the third quarter, Lockheed Martin raised its ownership interest in the AWE Management Limited (AWE) venture, which operates the UK’s nuclear deterrent program, by 18%. As a result, the company currently holds a 51% controlling interest in the AWE venture. Looking forward, management expects this venture to contribute $400 million to sales in 2016 and around $1–$1.1 billion in 2017.
Zacks Rank & Key Picks
Lockheed Martin currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in this space include Engility Holdings, Inc. , Leidos Holdings, Inc. (LDOS - Free Report) and General Dynamics Corporation (GD - Free Report) .
On an average, Engility has delivered a positive earnings surprise of 23.19% in the trailing four quarters. The company's 2016 earnings estimates increased 13.4% over the last 60 days. Engility sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Leidos Holdings carries a Zacks Rank #2 (Buy). The company's 2016 earnings estimates increased 9.9% over the last 60 days. On an average, the company has delivered a positive earnings surprise of 12.20% in the trailing four quarters.
General Dynamics, a Zacks Rank #2 stock, delivered a positive earnings surprise of 5.55% in the trailing four quarters. The company's 2016 earnings estimates increased from $9.77 to $9.79 over the last 60 days.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>