General Dynamics Corp.’s (GD - Free Report) business unit, Land Systems, recently won a modification contract to provide technical support for Abrams Tank Systems. The U.S. Army Contracting Command, Detroit Arsenal, MI, has offered the award.
Valued at $38.9 million, the contract is expected to get completed by Apr 30, 2023. Work related to this deal will be performed in Sterling Heights, MI.
What’s Favoring General Dynamics?
Amid the rising geopolitical tensions and the recent tiff between Russia and Ukraine, the United States and other countries globally have increased their spending manifold for upgrading defense systems and improving warfare capabilities. In this context, main battle tanks form an integral part of any nation’s defense system.
General Dynamics’ Abrams battle tank enjoys significant demand from the U.S Army and several U.S. allies due to its advanced features and the company’s continuous efforts to configure it with additional advanced capabilities. The latest contract win is a bright example of that.
Growth Prospects
Going forward, the demand for the main battle tank is likely to soar. Per a report from Mordor Intelligence, the main battle tank market is projected to witness a CAGR of more than 3% during the 2022-2027 period. Such abounding growth trends indicate ample growth opportunities for General Dynamics as it enjoys a lucrative position in the main battle tank market.
One defense player likely to benefit from such favorable trends is BAE Systems (BAESY - Free Report) .
BAE System’s Challenger 2 is heavily armored, highly mobile and designed for use in the direct fire zone. Its primary role is to destroy or neutralize armor. It also has the ability to engage both hard and soft targets and can operate across a spectrum of high-intensity conflicts, counter insurgency and peacekeeping roles.
The long-term earnings growth rate of BAESY is pegged at 7.2%. The Zacks Consensus Estimate for 2022 earnings indicates a surge of 21.4% from the prior year reported figure.
Price Performance
Shares of General Dynamics have rallied 22.8% in the past year against the industry’s decline of 40.4%.
Zacks Rank & Stocks to Consider
General Dynamics currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same sector are Kratos Defense & Security Solutions. (KTOS - Free Report) and TransDigm Group (TDG - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kratos’ 2022 sales suggests growth of 10.3% from the prior year’s estimated figure. The Zacks Consensus Estimate for Kratos’ 2022 earnings has improved 2.9% over the past 60 days.
Kratos has a four-quarter earnings surprise of 87.70%. In the last reported quarter, KTOS delivered an earnings surprise of 300%.
The Zacks Consensus Estimate for TransDigm’s 2022 earnings suggests growth of 36.4% from the prior-year figure. The Zacks Consensus Estimate for TransDigm’s 2022 sales suggests growth of 12.8% from the prior-year figure.
TransDigm has a four-quarter earnings surprise of 6.61%. TDG boasts a long-term earnings growth rate of 22.2%.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
General Dynamics Corp.’s (GD - Free Report) business unit, Land Systems, recently won a modification contract to provide technical support for Abrams Tank Systems. The U.S. Army Contracting Command, Detroit Arsenal, MI, has offered the award.
Valued at $38.9 million, the contract is expected to get completed by Apr 30, 2023. Work related to this deal will be performed in Sterling Heights, MI.
What’s Favoring General Dynamics?
Amid the rising geopolitical tensions and the recent tiff between Russia and Ukraine, the United States and other countries globally have increased their spending manifold for upgrading defense systems and improving warfare capabilities. In this context, main battle tanks form an integral part of any nation’s defense system.
General Dynamics’ Abrams battle tank enjoys significant demand from the U.S Army and several U.S. allies due to its advanced features and the company’s continuous efforts to configure it with additional advanced capabilities. The latest contract win is a bright example of that.
Growth Prospects
Going forward, the demand for the main battle tank is likely to soar. Per a report from Mordor Intelligence, the main battle tank market is projected to witness a CAGR of more than 3% during the 2022-2027 period. Such abounding growth trends indicate ample growth opportunities for General Dynamics as it enjoys a lucrative position in the main battle tank market.
One defense player likely to benefit from such favorable trends is BAE Systems (BAESY - Free Report) .
BAE System’s Challenger 2 is heavily armored, highly mobile and designed for use in the direct fire zone. Its primary role is to destroy or neutralize armor. It also has the ability to engage both hard and soft targets and can operate across a spectrum of high-intensity conflicts, counter insurgency and peacekeeping roles.
The long-term earnings growth rate of BAESY is pegged at 7.2%. The Zacks Consensus Estimate for 2022 earnings indicates a surge of 21.4% from the prior year reported figure.
Price Performance
Shares of General Dynamics have rallied 22.8% in the past year against the industry’s decline of 40.4%.
Zacks Rank & Stocks to Consider
General Dynamics currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same sector are Kratos Defense & Security Solutions. (KTOS - Free Report) and TransDigm Group (TDG - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kratos’ 2022 sales suggests growth of 10.3% from the prior year’s estimated figure. The Zacks Consensus Estimate for Kratos’ 2022 earnings has improved 2.9% over the past 60 days.
Kratos has a four-quarter earnings surprise of 87.70%. In the last reported quarter, KTOS delivered an earnings surprise of 300%.
The Zacks Consensus Estimate for TransDigm’s 2022 earnings suggests growth of 36.4% from the prior-year figure. The Zacks Consensus Estimate for TransDigm’s 2022 sales suggests growth of 12.8% from the prior-year figure.
TransDigm has a four-quarter earnings surprise of 6.61%. TDG boasts a long-term earnings growth rate of 22.2%.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
Get the latest research report on GD - FREE
Get the latest research report on TDG - FREE
Get the latest research report on BAESY - FREE
Get the latest research report on KTOS - FREE