General Dynamics Corporation’s (GD - Free Report) business unit, General Dynamics Land Systems has won a contract from the U.S. Army to convert the Abrams M1A2 tanks into the M1A2S configuration.
Contract Details
The contract is worth $82.4 million. It was awarded by the Army Contracting Command, Warren, MI.
Work is scheduled to be complete by Mar 29, 2019. The majority of the work will be performed in Lima, OH, while the rest will be performed in Sterling Heights, MI. The contract will use fiscal 2016 (other) funds.
About the Abrams
The M1A2 is the advanced version of the M1A1, which includes a commander's independent thermal viewer, weapon station, position navigation equipment, and a full set of controls and displays connected by a digital data bus. Due to these upgrades, the M1A2 is equipped with an improved fire control system.
M1A2 System Enhancement Package (“SEP”) V2 is the most advanced digital tank with improved color displays, day and night thermal sights, commander remote-operated weapon station (“CROWS II”), a Thermal Management System (“TMS”), and a tank infantry phone.
Conversion into the M1A2S configuration will boost efficiency and capability of the tank. Moreover, M1A2S vehicles possess distinct capabilities that ramp up the weapon’s ability to kill, while limiting obsolescence.
Why General Dynamics?
General Dynamics has had a long-standing strategic alliance with the U.S. defense establishments, backed by its consistent efforts on trying to meet its commitments in terms of maintaining product and service standards, along with delivery timing. The company has been upgrading Saudi Arabia’s fleet of M1A1 and M1A2 tanks for a long time.
General Dynamics’ Abrams tanks provide troops with a proven and supreme decisive edge. In addition, survivability, mobility, adaptability and maintainability are important features of the tank. These capabilities make the tanks formidable and allow them to dominate the battlefield. Major international militaries of countries like Egypt, Kuwait, Saudi Arabia, Australia and Iraq are the primary customers of the Abrams tanks.
Price Movement
General Dynamics’s stock has improved about 26.3% in the last one year, outperforming the Zacks categorized Aerospace/Defense industry’s gain of 11.8%. This could be because General Dynamics consistently maintains a strategic alliance with the U.S. Department of Defense, which allows it to enjoy a steady flow of contracts.
Zacks Rank & Key Picks
General Dynamics currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the aerospace and defense space are Engility Holdings, Inc. , Northrop Grumman Corporation (NOC - Free Report) and Leidos Holdings, Inc. (LDOS - Free Report) .
On an average, Engility has delivered a positive earnings surprise of 23.19% in the trailing four quarters. The company’s 2016 earnings estimates increased 13.4% over the last 60 days. Engility sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Northrop Grumman, another Zacks Rank #1 stock, delivered a positive earnings surprise of 8.29% in the trailing four quarters. The company’s 2016 earnings estimates increased 6% in the last 60 days.
Leidos Holdings carries a Zacks Rank #2 (Buy). The company’s 2016 earnings estimates increased 10.3% over the last 60 days. On an average, the company has delivered a positive earnings surprise of 12.20% in the trailing four quarters.
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Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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General Dynamics Corporation’s (GD - Free Report) business unit, General Dynamics Land Systems has won a contract from the U.S. Army to convert the Abrams M1A2 tanks into the M1A2S configuration.
Contract Details
The contract is worth $82.4 million. It was awarded by the Army Contracting Command, Warren, MI.
Work is scheduled to be complete by Mar 29, 2019. The majority of the work will be performed in Lima, OH, while the rest will be performed in Sterling Heights, MI. The contract will use fiscal 2016 (other) funds.
About the Abrams
The M1A2 is the advanced version of the M1A1, which includes a commander's independent thermal viewer, weapon station, position navigation equipment, and a full set of controls and displays connected by a digital data bus. Due to these upgrades, the M1A2 is equipped with an improved fire control system.
M1A2 System Enhancement Package (“SEP”) V2 is the most advanced digital tank with improved color displays, day and night thermal sights, commander remote-operated weapon station (“CROWS II”), a Thermal Management System (“TMS”), and a tank infantry phone.
Conversion into the M1A2S configuration will boost efficiency and capability of the tank. Moreover, M1A2S vehicles possess distinct capabilities that ramp up the weapon’s ability to kill, while limiting obsolescence.
Why General Dynamics?
General Dynamics has had a long-standing strategic alliance with the U.S. defense establishments, backed by its consistent efforts on trying to meet its commitments in terms of maintaining product and service standards, along with delivery timing. The company has been upgrading Saudi Arabia’s fleet of M1A1 and M1A2 tanks for a long time.
General Dynamics’ Abrams tanks provide troops with a proven and supreme decisive edge. In addition, survivability, mobility, adaptability and maintainability are important features of the tank. These capabilities make the tanks formidable and allow them to dominate the battlefield. Major international militaries of countries like Egypt, Kuwait, Saudi Arabia, Australia and Iraq are the primary customers of the Abrams tanks.
Price Movement
General Dynamics’s stock has improved about 26.3% in the last one year, outperforming the Zacks categorized Aerospace/Defense industry’s gain of 11.8%. This could be because General Dynamics consistently maintains a strategic alliance with the U.S. Department of Defense, which allows it to enjoy a steady flow of contracts.
Zacks Rank & Key Picks
General Dynamics currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the aerospace and defense space are Engility Holdings, Inc. , Northrop Grumman Corporation (NOC - Free Report) and Leidos Holdings, Inc. (LDOS - Free Report) .
On an average, Engility has delivered a positive earnings surprise of 23.19% in the trailing four quarters. The company’s 2016 earnings estimates increased 13.4% over the last 60 days. Engility sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Northrop Grumman, another Zacks Rank #1 stock, delivered a positive earnings surprise of 8.29% in the trailing four quarters. The company’s 2016 earnings estimates increased 6% in the last 60 days.
Leidos Holdings carries a Zacks Rank #2 (Buy). The company’s 2016 earnings estimates increased 10.3% over the last 60 days. On an average, the company has delivered a positive earnings surprise of 12.20% in the trailing four quarters.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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