We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Dynamics (GD) Wins a $94M Deal to Build M1A2 Tanks
Read MoreHide Full Article
General Dynamics Corp.’s (GD - Free Report) business unit, Land Systems, recently secured a contract involving the M1A2 Abrams tank. The deal has been awarded by the U.S. Army Contracting Command, Detroit Arsenal, MI.
Valued at $93.5 million, the contract is expected to get completed by Sep 30, 2025. Per the terms, General Dynamics will conduct the production, manufacturing, design and engineering of the M1A2 Abrams.
Work related to this deal will be executed in Lima, OH.
Solid Demand for MBTs
Nations worldwide are developing advanced new generation main battle tanks (MBTs) to equip their militaries amid rising geopolitical tensions. General Dynamics’ Abrams battle tank is one such tank and thus its demand continues to soar.
Apart from solid demand on the domestic front, this program has a robust customer base overseas. Major international militaries of nations like Egypt, Kuwait, Saudi Arabia, Australia, and Iraq are the primary customers of Abrams battle tanks. Therefore, General Dynamics witnesses solid contract flow for Abrams from Pentagon and other U.S. allies.
The company won a $4.62 billion worth contract for manufacturing Abrams M1A2 SEPv3 tanks last year. The latest contract win is yet another bright example of the solid demand that this tank enjoys.
Growth Prospects
Per a report by Mordor Intelligence, the MBT market is expected to register a CAGR of more than 3% during 2020-2025, which bodes well for manufacturers of such battle tanks like General Dynamics and BAE Systems Plc (BAESY - Free Report) .
BAE Systems’ Land business unit designs, manufactures, upgrades and supports combat vehicles. The company’s significant ground vehicles include Armored Multi-Purpose Vehicle (AMPV), CV90, CV90 MkiV, CV90120, CV90 IFV, CV90 Armadillo, ADAPTIV and a few more.
BAE Systems boasts a solid long-term earnings growth rate of 3.6%. The stock has gained 7.5% in the past year.
Price Performance
Shares of General Dynamics have gained 33.7% in a year against the industry’s decline 32.9%.
Aerojet Rocketdyne delivered an earnings surprise of 23.40% in the last-reported quarter. The Zacks Consensus Estimate for its current-year earnings has improved 3.6% over the past 60 days.
Aerojet Rocketdyne’s third-quarter 2021 sales increased 3.3% year over year. AJRD has gained 140.3% in the past five years.
Elbit Systems delivered an earnings surprise of 25.95% in the last-reported quarter. The Zacks Consensus Estimate for its current-year earnings has improved 10% over the past 60 days.
Elbit’s third-quarter 2021 revenues increased 22.6% year over year. ESLT has gained 53.8% in the past five years.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
General Dynamics (GD) Wins a $94M Deal to Build M1A2 Tanks
General Dynamics Corp.’s (GD - Free Report) business unit, Land Systems, recently secured a contract involving the M1A2 Abrams tank. The deal has been awarded by the U.S. Army Contracting Command, Detroit Arsenal, MI.
Valued at $93.5 million, the contract is expected to get completed by Sep 30, 2025. Per the terms, General Dynamics will conduct the production, manufacturing, design and engineering of the M1A2 Abrams.
Work related to this deal will be executed in Lima, OH.
Solid Demand for MBTs
Nations worldwide are developing advanced new generation main battle tanks (MBTs) to equip their militaries amid rising geopolitical tensions. General Dynamics’ Abrams battle tank is one such tank and thus its demand continues to soar.
Apart from solid demand on the domestic front, this program has a robust customer base overseas. Major international militaries of nations like Egypt, Kuwait, Saudi Arabia, Australia, and Iraq are the primary customers of Abrams battle tanks. Therefore, General Dynamics witnesses solid contract flow for Abrams from Pentagon and other U.S. allies.
The company won a $4.62 billion worth contract for manufacturing Abrams M1A2 SEPv3 tanks last year. The latest contract win is yet another bright example of the solid demand that this tank enjoys.
Growth Prospects
Per a report by Mordor Intelligence, the MBT market is expected to register a CAGR of more than 3% during 2020-2025, which bodes well for manufacturers of such battle tanks like General Dynamics and BAE Systems Plc (BAESY - Free Report) .
BAE Systems’ Land business unit designs, manufactures, upgrades and supports combat vehicles. The company’s significant ground vehicles include Armored Multi-Purpose Vehicle (AMPV), CV90, CV90 MkiV, CV90120, CV90 IFV, CV90 Armadillo, ADAPTIV and a few more.
BAE Systems boasts a solid long-term earnings growth rate of 3.6%. The stock has gained 7.5% in the past year.
Price Performance
Shares of General Dynamics have gained 33.7% in a year against the industry’s decline 32.9%.
Zacks Rank & Key Picks
General Dynamics currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the same sector are Aerojet Rocketdyne and Elbit Systems (ESLT - Free Report) , both of which hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aerojet Rocketdyne delivered an earnings surprise of 23.40% in the last-reported quarter. The Zacks Consensus Estimate for its current-year earnings has improved 3.6% over the past 60 days.
Aerojet Rocketdyne’s third-quarter 2021 sales increased 3.3% year over year. AJRD has gained 140.3% in the past five years.
Elbit Systems delivered an earnings surprise of 25.95% in the last-reported quarter. The Zacks Consensus Estimate for its current-year earnings has improved 10% over the past 60 days.
Elbit’s third-quarter 2021 revenues increased 22.6% year over year. ESLT has gained 53.8% in the past five years.