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General Dynamics' (GD) NASSCO Wins $67M Deal to Repair DDG 51
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General Dynamics Corp.’s (GD - Free Report) business subsidiary, National Steel and Shipbuilding Co. (NASSCO), recently secured a $67.2-million contract for performing fiscal 2019 dry-docking phased maintenance, modernization and repair works on the USS Arleigh Burke DDG 51 ship. The contract was awarded by Naval Sea Systems Command, Washington, DC.
Per the deal, NASSCO will provide facilities and human resources for coordinating, integrating and completing multiple areas of ship maintenance, repair, and modernization of the DDG 51 class ship. Work related to the deal will be performed in Norfolk, VA and is scheduled to be completed by November 2019.
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 Favors General Dynamics’ NASSCO Unit?
General Dynamics’ NASSCO unit conducts full-service maintenance and surface-ship repair operations in four primary locations within the Navy’s largest U.S. ports and at customer locations across the globe. Also, it designs and delivers the world’s first liquefied natural gas (LNG)- powered containerships, using green ship technology, to dramatically decrease emissions while increasing fuel efficiency.
NASSCO, between 2014 and 2017, constructed and delivered eight LNG-conversion-ready product tankers for commercial customers. This reflects the subsidiary’s strong potential in generating revenues for General Dynamics. Furthermore, fiscal 2019 defense budget includes an investment plan of $18.3 billion for shipbuilding, which comprises a $6-billion spending provision for procuring 3 DDG 51 ships. Such budgetary developments should benefit General Dynamics' NASSCO unit, in terms of more contract wins, as the company is a prominent ship builder in the United States.
Price Movement
General Dynamics’ stock has lost 16.2% in the past year against its industry’s growth of 3.8%.
Zacks Rank & Key Picks
General Dynamics currently carries a Zacks Rank #4 (Sell).
Boeing delivered average positive earnings surprise of 17.08% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has moved up 8.4% to $19.51 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 7.2% to $19.09 in the past 90 days.
Heico Corporation’s long-term growth estimates currently stands at 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, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
Image: Bigstock
General Dynamics' (GD) NASSCO Wins $67M Deal to Repair DDG 51
General Dynamics Corp.’s (GD - Free Report) business subsidiary, National Steel and Shipbuilding Co. (NASSCO), recently secured a $67.2-million contract for performing fiscal 2019 dry-docking phased maintenance, modernization and repair works on the USS Arleigh Burke DDG 51 ship. The contract was awarded by Naval Sea Systems Command, Washington, DC.
Per the deal, NASSCO will provide facilities and human resources for coordinating, integrating and completing multiple areas of ship maintenance, repair, and modernization of the DDG 51 class ship. Work related to the deal will be performed in Norfolk, VA and is scheduled to be completed by November 2019.
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 Favors General Dynamics’ NASSCO Unit?
General Dynamics’ NASSCO unit conducts full-service maintenance and surface-ship repair operations in four primary locations within the Navy’s largest U.S. ports and at customer locations across the globe. Also, it designs and delivers the world’s first liquefied natural gas (LNG)- powered containerships, using green ship technology, to dramatically decrease emissions while increasing fuel efficiency.
NASSCO, between 2014 and 2017, constructed and delivered eight LNG-conversion-ready product tankers for commercial customers. This reflects the subsidiary’s strong potential in generating revenues for General Dynamics. Furthermore, fiscal 2019 defense budget includes an investment plan of $18.3 billion for shipbuilding, which comprises a $6-billion spending provision for procuring 3 DDG 51 ships. Such budgetary developments should benefit General Dynamics' NASSCO unit, in terms of more contract wins, as the company is a prominent ship builder in the United States.
Price Movement
General Dynamics’ stock has lost 16.2% in the past year against its industry’s growth of 3.8%.
Zacks Rank & Key Picks
General Dynamics currently carries a Zacks Rank #4 (Sell).
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 8.4% to $19.51 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 7.2% to $19.09 in the past 90 days.
Heico Corporation’s long-term growth estimates currently stands at 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, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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