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Lockheed Martin (LMT) Secures $23M Contract From U.S. Navy
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Lockheed Martin Corp. (LMT - Free Report) has won a modification contract to exercise an option for providing class services in support of the Littoral Combat Ship program. The contract includes foreign military sales (FMS) to the Kingdom of Saudi Arabia.
Contract Details
Valued at $22.7 million, this contract has been awarded by the Naval Sea Systems Command, Washington, DC. While the majority of the work will be carried out in Hampton, VA, the rest will be executed in Moorestown, NJ, and Washington, DC.
Lockheed Martin will utilize FMS funds for the Navy to complete the work by July 2018.
A Brief Note on LCS
An LCS is a type of relatively small surface vessel used for operations in the littoral zone. These are well designed to tackle rapidly changing global threats and provide a cost-effective solution.
Our View
Lockheed Martin is the chief contractor of the U.S. Navy’s newest LCS. The program of building these Freedom-class ships involves 900 companies in 43 states.
Although the Navy is most likely to purchase 52 LCS ships, government officials have asked them to reduce the count. Earlier, Defense Secretary Carter had made a proposal to the Navy for lowering the purchases to 40 ships. However, Navy officials have remained unchanged in their initial target of 52 ships.
In fact, being the Pentagon’s prime defense contractor, Lockheed Martin enjoys a lion’s share of the aerospace-defense industry in the United States.
Moreover, the fiscal 2018 defense policy has authorized the United States to spend $700 billion on defense. This, in turn, has enhanced the prospect of increased order flow from Pentagon for major defense contractors like Lockheed Martin, Raytheon Company , Northrop Grumman Corporation (NOC - Free Report) , The Boeing Company (BA - Free Report) and others.
Considering the aforementioned developments, Lockheed Martin is expected to win more of such contracts in the long run.
Price Movement
Lockheed Martin’s stock was up about 19% in a year, underperforming the broader industry’s gain of 36%. This could have been caused by the intense competition that the company faces for its broad portfolio of products and services domestically as well as internationally.
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Lockheed Martin (LMT) Secures $23M Contract From U.S. Navy
Lockheed Martin Corp. (LMT - Free Report) has won a modification contract to exercise an option for providing class services in support of the Littoral Combat Ship program. The contract includes foreign military sales (FMS) to the Kingdom of Saudi Arabia.
Contract Details
Valued at $22.7 million, this contract has been awarded by the Naval Sea Systems Command, Washington, DC. While the majority of the work will be carried out in Hampton, VA, the rest will be executed in Moorestown, NJ, and Washington, DC.
Lockheed Martin will utilize FMS funds for the Navy to complete the work by July 2018.
A Brief Note on LCS
An LCS is a type of relatively small surface vessel used for operations in the littoral zone. These are well designed to tackle rapidly changing global threats and provide a cost-effective solution.
Our View
Lockheed Martin is the chief contractor of the U.S. Navy’s newest LCS. The program of building these Freedom-class ships involves 900 companies in 43 states.
Although the Navy is most likely to purchase 52 LCS ships, government officials have asked them to reduce the count. Earlier, Defense Secretary Carter had made a proposal to the Navy for lowering the purchases to 40 ships. However, Navy officials have remained unchanged in their initial target of 52 ships.
In fact, being the Pentagon’s prime defense contractor, Lockheed Martin enjoys a lion’s share of the aerospace-defense industry in the United States.
Moreover, the fiscal 2018 defense policy has authorized the United States to spend $700 billion on defense. This, in turn, has enhanced the prospect of increased order flow from Pentagon for major defense contractors like Lockheed Martin, Raytheon Company , Northrop Grumman Corporation (NOC - Free Report) , The Boeing Company (BA - Free Report) and others.
Considering the aforementioned developments, Lockheed Martin is expected to win more of such contracts in the long run.
Price Movement
Lockheed Martin’s stock was up about 19% in a year, underperforming the broader industry’s gain of 36%. This could have been caused by the intense competition that the company faces for its broad portfolio of products and services domestically as well as internationally.
Zacks Rank
Lockheed Martin carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>