General Dynamics ( GD Quick Quote GD - Free Report) announced that its unit General Dynamics Information Technology (GDIT) has received a contract from The General Services Administration to provide Enterprise Mission Information Technology Services. The deal is valued at $695 million. Details
Per the terms of the deal, the subsidiary’s services will include delivering enterprise information technology, communications and mission command support services to the United States Army Europe (USAREUR) headquarters, US North Atlantic Treaty Organization operations, and other forward deployed Department of Defense organizations and Regionally Aligned Forces in Europe. The task order will span over a five-year period comprising a three-month transition, one-year base period and four one-year options.
Previously, GDIT was awarded the Theater Mission Command Contract (TMCC) II task order in 2016. Backed by this order, the unit will deliver technical expertise in cybersecurity solutions to further optimize the critical mission command networks and systems, thus enabling USAREUR operations to advance its global mission. Strong Demand
During the third quarter of 2020, General Dynamics witnessed strong order growth, in line with its usual trend. This, in turn, boosted its backlog, which grew 21% year over year to $81.5 billion. Such impressive backlog trends indicate solid demand for the company’s products, thereby bolstering its revenue generation prospects significantly.
On Dec 23, 2020, General Dynamics’ business unit Land Systems was awarded a $4.6-billion fixed-price-incentive contract to produce M1A2 SEPv3 Abrams main battle tanks for the U.S. Army. Earlier in November, GDIT was awarded a contract by the Department of Health and Human Services Centers for Medicare and Medicaid Services to provide cloud services and software tools. Also, in the same month, another unit of the company, General Dynamics Electric Boat, was awarded a $9.5-billion contract by the U.S. Navy for construction and trial of the lead and second ships of the Columbia class as well as for associated design and engineering support. Zacks Rank & Price Performance
The stock currently carries a Zacks Rank #4 (Sell).
You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Shares of General Dynamics have gained 2.3% in the past month against the industry’s decline of 1.1%. Stocks to Consider
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Leidos Holdings, Inc. ( LDOS Quick Quote LDOS - Free Report) , Transdigm Group Incorporated ( TDG Quick Quote TDG - Free Report) and Ducommun Incorporated ( DCO Quick Quote DCO - Free Report) , all carrying a Zacks Rank#2 (Buy), at present. Leidos Holdings has a long-term (three-five years) earnings growth rate of 10.84%. It delivered an earnings surprise of 17.57%, on average, in the last four quarters. Transdigm Group delivered an earnings surprise of 37.24%, on average, in the last four quarters. The company has a long-term earnings growth rate of 4.03%. Ducommun delivered an earnings surprise of 66.73%, on average, in the trailing four quarters. The Zacks Consensus Estimate for 2021 earnings has moved 1.1% north in the past 60 days. Breakout Biotech Stocks with Triple-Digit Profit Potential
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