Lockheed Martin Corporation (LMT - Free Report) announced that it has received a contract worth $22.4 million from the U.S. Army for providing engineering services to the Hellfire missile and Joint-Air-to-Ground Missile (“JAGM”). Work on the contract will be performed in Orlando, FA, with an estimated completion date of Sep 2, 2022.
Joint Air-to-Ground Missile and Hellfire
After years of research and development, Lockheed Martin's JAGM system successfully passed its Defense Acquisition Board review and achieved milestone C in 2018. JAGM is a multi-sensor air-to-ground missile that is the successor to the combat-proven Hellfire Romeo and Hellfire Longbow missiles. AGM employs a multi-mode guidance section that offers enhanced performance on the battlefield when compared with Hellfire missiles.
JAGM also ensures precision strike and fire-and-forget capability against stationary and moving land as well as maritime targets in adverse weather and obscured battlefield conditions. The JAGM system hardware is built on the active HELLFIRE® missile family production line of Lockheed Martin.
The Lockheed Missions and Fire Control business continues to develop high-quality missiles for the United States and its allies. Courtesy of higher sales from tactical and strike missile programs, as well as integrated air and missile defense programs in second-quarter 2020, quarterly sales improved 16% year over year to $2.80 billion.
Focus on Missile Defense
The high-quality missiles system provides U.S. air dominance and helps in protecting ground installations from enemy fire. The U.S. Army is trying to improve its existing missile systems. This is evident from the U.S. fiscal 2021 defense budget proposal.
The fiscal 2021 defense budget has provisioned $20.3 billion investment for missile defense. Lockheed Martin provides high-quality missile solutions and its capability to develop new products per the requirement of the U.S. defense establishments make us hopeful that the company will grab more deals going forward.
Since the defense missile is a large market, other major U.S. missile defense players like General Dynamics (GD - Free Report) , Raytheon Technologies (RTX - Free Report) and Boeing (BA - Free Report) are also expected to benefit from the aforementioned budget provision.
Price Performance & Zacks Rank
Lockheed Martin stock has gained 21.7% in the past six months compared with the industry’s rally of 11.8%.
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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