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Northrop (NOC) Wins $409M Air Force Deal for NGT-PAC Project
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Defense giant, Northrop Grumman Corp. (NOC - Free Report) recently clinched a contract for Next Generation Thermal, Power and Controls (NGT-PAC) program. Work related to this deal is scheduled to be over by Jul 2024.
Details of the Deal
Valued at $409 million, the contract was awarded by the Air Force Research Laboratory, Wright-Patterson Air Force Base, OH.
Per the terms, Northrop will develop revolutionary and innovative technologies to conduct applied research for enhancing knowledge and understanding of future power, thermal and controls requirements. The work will also include improving technological feasibility, and assessing their operability and productivity through proof of principal demonstrations.
The company will perform the entire work at Redondo Beach, CA, within the scheduled time.
Our View
Northrop offers a broad portfolio of capabilities and technologies. These include cyber; command, control, communications and computers, intelligence, surveillance, and reconnaissance (C4ISR); strike; and logistics and modernization. Based on the heightened focus of the U.S. government on Intelligence Surveillance Reconnaissance (ISR), unmanned systems, force protection, cyber security and missile defense, we believe that Northrop has significant upside potential.
Meanwhile, the company’s fiscal 2017 budget reflected an annual increase of approximately $2.2 billion. The increased spending would be allocated to certain key areas that can unlock higher opportunities for Northrop Grumman.
Interestingly, Trump’s presidency seems to have created a win-win situation for the Aerospace and Defense big shots like Lockheed Martin Corp. (LMT - Free Report) , The Boeing Co. (BA - Free Report) and Huntington Ingalls Industries, Inc. (HII - Free Report) . These stocks saw a notable rise after Trump presented his “America First” budget. An increase in fund flow from the Pentagon has also added to the optimism. We expect these factors to enable Northrop in winning more such scrumptious orders in the days ahead.
Price Movement
Northrop’s stock has returned 19.1% in the last one year, underperforming the Zacks categorized Aerospace–Defense industry’s gain of 27.3%. This could be because higher operating expenses continue to partially impact the company’s profit margin. Moreover, Northrop faces stiff competition from other defense majors in the nation.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Northrop (NOC) Wins $409M Air Force Deal for NGT-PAC Project
Defense giant, Northrop Grumman Corp. (NOC - Free Report) recently clinched a contract for Next Generation Thermal, Power and Controls (NGT-PAC) program. Work related to this deal is scheduled to be over by Jul 2024.
Details of the Deal
Valued at $409 million, the contract was awarded by the Air Force Research Laboratory, Wright-Patterson Air Force Base, OH.
Per the terms, Northrop will develop revolutionary and innovative technologies to conduct applied research for enhancing knowledge and understanding of future power, thermal and controls requirements. The work will also include improving technological feasibility, and assessing their operability and productivity through proof of principal demonstrations.
The company will perform the entire work at Redondo Beach, CA, within the scheduled time.
Our View
Northrop offers a broad portfolio of capabilities and technologies. These include cyber; command, control, communications and computers, intelligence, surveillance, and reconnaissance (C4ISR); strike; and logistics and modernization. Based on the heightened focus of the U.S. government on Intelligence Surveillance Reconnaissance (ISR), unmanned systems, force protection, cyber security and missile defense, we believe that Northrop has significant upside potential.
Meanwhile, the company’s fiscal 2017 budget reflected an annual increase of approximately $2.2 billion. The increased spending would be allocated to certain key areas that can unlock higher opportunities for Northrop Grumman.
Interestingly, Trump’s presidency seems to have created a win-win situation for the Aerospace and Defense big shots like Lockheed Martin Corp. (LMT - Free Report) , The Boeing Co. (BA - Free Report) and Huntington Ingalls Industries, Inc. (HII - Free Report) . These stocks saw a notable rise after Trump presented his “America First” budget. An increase in fund flow from the Pentagon has also added to the optimism. We expect these factors to enable Northrop in winning more such scrumptious orders in the days ahead.
Price Movement
Northrop’s stock has returned 19.1% in the last one year, underperforming the Zacks categorized Aerospace–Defense industry’s gain of 27.3%. This could be because higher operating expenses continue to partially impact the company’s profit margin. Moreover, Northrop faces stiff competition from other defense majors in the nation.
Zacks Rank
Northrop currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>