We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Dynamics to Provide Support Services to DDG 51 Ships
Read MoreHide Full Article
General Dynamics Corp.’s (GD - Free Report) business unit, Bath Iron Works (“BIW”) recently secured a $126.2-million modification contract for providing integrated planning yard services for the DDG 51 class ship. The contract was awarded by Naval Sea Systems Command, Washington, DC.
Per the deal, BIW will provide designing, planning and material support services for both maintenance and modernization of the DDG 51 class ship. Work related to the deal will be performed in Bath, ME, and is scheduled to be complete by January 2024.
General Dynamics will utilize fiscal 2019 operations and maintenance (Navy), and other procurement (Navy) funds for the task.
A Brief Note on DDG-51
The DDG 51 Arleigh Burke-class is a multi-mission warship. It features an advanced anti-submarine warfare system, the AEGIS combat system, the Vertical Launching System, two embarked SH-60 helicopters, and advanced anti-aircraft and land-attack missiles. Impressively, the warship offers protection against a wide range of threats, including ballistic missiles.
What’s Favoring General Dynamics?
General Dynamics has been serving the U.S. Navy, by constructing and delivering next-generation combat ships for decades. Being the Navy's primary surface combatant, the Aegis-equipped Arleigh Burke-class (DDG 51) destroyers enjoy solid demand in the United States. Such steep demand grants General Dynamics at an advantageous position in the shipbuilding business, with the company being the lead designer and builder of DDG 51.
In fourth-quarter 2018, the company’s Marine Systems, which builds combat ships and provides technical integrated planning yard services, witnessed 11.5% revenue growth on a year-over-year basis. We may expect the latest contract win to add impetus to this segment’s growth in the coming quarters as well.
Furthermore, fiscal 2019 defense budget includes an investment plan of $18.3 billion for shipbuilding. Particularly, this investment comprises a $6-billion spending provision for procuring 3 DDG 51s compared with $4 billion allotted in the prior year’s budget. This has been beneficial for major shipbuilders like General Dynamics, as such favorable budgetary revisions increase the company’s possibility of winning shipbuilding and associated contracts.
Price Movement
General Dynamics’s stock has lost 13.3% in the past year against its industry’s growth of 8.5%.
Zacks Rank & Key Picks
General Dynamics currently carries a Zacks Rank #3 (Hold).
Boeing delivered average positive earnings surprise of 17.08% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has moved up 5.9% to $19.06 in the past 90 days.
Northrop Grumman came up with average positive earnings surprise of 19.93% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has increased 9.82% to $19.56 in the past 90 days.
Heico has a long-term growth rate of 12.10%. The Zacks Consensus Estimate for 2019 earnings has increased 4% to $2.08 in the past 90 days.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Image: Bigstock
General Dynamics to Provide Support Services to DDG 51 Ships
General Dynamics Corp.’s (GD - Free Report) business unit, Bath Iron Works (“BIW”) recently secured a $126.2-million modification contract for providing integrated planning yard services for the DDG 51 class ship. The contract was awarded by Naval Sea Systems Command, Washington, DC.
Per the deal, BIW will provide designing, planning and material support services for both maintenance and modernization of the DDG 51 class ship. Work related to the deal will be performed in Bath, ME, and is scheduled to be complete by January 2024.
General Dynamics will utilize fiscal 2019 operations and maintenance (Navy), and other procurement (Navy) funds for the task.
A Brief Note on DDG-51
The DDG 51 Arleigh Burke-class is a multi-mission warship. It features an advanced anti-submarine warfare system, the AEGIS combat system, the Vertical Launching System, two embarked SH-60 helicopters, and advanced anti-aircraft and land-attack missiles. Impressively, the warship offers protection against a wide range of threats, including ballistic missiles.
What’s Favoring General Dynamics?
General Dynamics has been serving the U.S. Navy, by constructing and delivering next-generation combat ships for decades. Being the Navy's primary surface combatant, the Aegis-equipped Arleigh Burke-class (DDG 51) destroyers enjoy solid demand in the United States. Such steep demand grants General Dynamics at an advantageous position in the shipbuilding business, with the company being the lead designer and builder of DDG 51.
In fourth-quarter 2018, the company’s Marine Systems, which builds combat ships and provides technical integrated planning yard services, witnessed 11.5% revenue growth on a year-over-year basis. We may expect the latest contract win to add impetus to this segment’s growth in the coming quarters as well.
Furthermore, fiscal 2019 defense budget includes an investment plan of $18.3 billion for shipbuilding. Particularly, this investment comprises a $6-billion spending provision for procuring 3 DDG 51s compared with $4 billion allotted in the prior year’s budget. This has been beneficial for major shipbuilders like General Dynamics, as such favorable budgetary revisions increase the company’s possibility of winning shipbuilding and associated contracts.
Price Movement
General Dynamics’s stock has lost 13.3% in the past year against its industry’s growth of 8.5%.
Zacks Rank & Key Picks
General Dynamics currently carries a Zacks Rank #3 (Hold).
A few better-ranked companies in the same sector are The Boeing Company (BA - Free Report) , Northrop Grumman Corporation (NOC - Free Report) and Heico Corporation (HEI - Free Report) .
While Boeing sports a Zacks Rank #1 (Strong Buy), Northrop Grumman and Heico carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boeing delivered average positive earnings surprise of 17.08% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has moved up 5.9% to $19.06 in the past 90 days.
Northrop Grumman came up with average positive earnings surprise of 19.93% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has increased 9.82% to $19.56 in the past 90 days.
Heico has a long-term growth rate of 12.10%. The Zacks Consensus Estimate for 2019 earnings has increased 4% to $2.08 in the past 90 days.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>