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Raytheon Technologies Corp. (RTX - Free Report) and Lockheed Martin Corp’s (LMT - Free Report) joint venture (JV), Javelin, recently secured a contract for full-rate production of Javelin missiles. The award has been offered by the U.S. Army Contracting Command, Red Stone Arsenal, AL.
Valued at $311.2 million, the contract is projected to be completed by Nov 30, 2026. Work related to this deal will be carried out in Tucson, AZ.
Usefulness of Javelin
Javelin is the world's first one-man-portable, fire-and-forget, multipurpose missile system. This compact and lightweight missile was designed for one-soldier operations in all situations. It enhances direct-fire capability against armored vehicles, buildings and field fortifications. Armed forces all over the world have adopted Javelin.
This combat-proven weapon system boasts a reliability rate of more than 94%. It can be deployed from multiple platforms and used in all weather conditions, day or night operations.
Growth Prospects
Increasing geopolitical tensions across the globe have prompted nations, both developed and developing, to strengthen their defense systems manifold. Following rapid technological advancements, missile defense has steadily emerged as a key catalyst for nations’ defense strategy.
The United States is the world’s largest weapons supplier. Raytheon Technologies and Lockheed Martin, being two prominent U.S. missile makers, have been clinching significant awards for the enhancement of missile defense systems with the latest technologies and providing their end users with complex technical services. The latest contract is one such example.
Per a report by Mordor Intelligence, the global missiles and missile defense systems market is estimated to register a CAGR of more than 8% during the 2022-2031 period.
Such massive growth projections indicate solid opportunities for prominent missile manufacturers like Raytheon Technologies, Lockheed Martin along with Northrop Grumman (NOC - Free Report) and General Dynamics (GD - Free Report) .
Northrop Grumman is a prominent developer of missile systems and counter systems, including strategic deterrents, as well as sub-systems and components. In fact, to strengthen its position in the missile market, Northrop acquired Orbital ATK in 2018, which used to be one of the industry leaders in providing missile components across air-, sea- and land-based systems.
Northrop Grumman boasts a long-term earnings growth rate of 6.1%. The Zacks Consensus Estimate for NOC’s 2022 sales indicates an improvement of 2.6% from the 2021 reported figure.
General Dynamics’ Ordnance and Tactical Systems is the system integrator of the 2.75-inch Hydra-70 family of rockets. It also produces composite rocket motor cases and launch tubes for tactical and strategic missiles.
General Dynamics boasts a long-term earnings growth rate of 9.8%. The Zacks Consensus Estimate for GD’s 2022 sales indicates an improvement of 2.7% from the 2021 reported figure.
Price Movement
In the past year, Raytheon Technologies’ shares have lost 1.4% compared with the industry’s 3.3% decline.
Image Source: Zacks Investment Research
On the other hand, shares of Lockheed have gained 18.6% against the industry’s 34.3% decline in the past year.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed Martin currently carries a Zacks Rank #3 (Hold), while Raytheon has a Zacks Rank #4 (Sell).
Image: Bigstock
Raytheon (RTX), Lockheed (LMT) JV Wins Javelin Missiles Deal
Raytheon Technologies Corp. (RTX - Free Report) and Lockheed Martin Corp’s (LMT - Free Report) joint venture (JV), Javelin, recently secured a contract for full-rate production of Javelin missiles. The award has been offered by the U.S. Army Contracting Command, Red Stone Arsenal, AL.
Valued at $311.2 million, the contract is projected to be completed by Nov 30, 2026. Work related to this deal will be carried out in Tucson, AZ.
Usefulness of Javelin
Javelin is the world's first one-man-portable, fire-and-forget, multipurpose missile system. This compact and lightweight missile was designed for one-soldier operations in all situations. It enhances direct-fire capability against armored vehicles, buildings and field fortifications. Armed forces all over the world have adopted Javelin.
This combat-proven weapon system boasts a reliability rate of more than 94%. It can be deployed from multiple platforms and used in all weather conditions, day or night operations.
Growth Prospects
Increasing geopolitical tensions across the globe have prompted nations, both developed and developing, to strengthen their defense systems manifold. Following rapid technological advancements, missile defense has steadily emerged as a key catalyst for nations’ defense strategy.
The United States is the world’s largest weapons supplier. Raytheon Technologies and Lockheed Martin, being two prominent U.S. missile makers, have been clinching significant awards for the enhancement of missile defense systems with the latest technologies and providing their end users with complex technical services. The latest contract is one such example.
Per a report by Mordor Intelligence, the global missiles and missile defense systems market is estimated to register a CAGR of more than 8% during the 2022-2031 period.
Such massive growth projections indicate solid opportunities for prominent missile manufacturers like Raytheon Technologies, Lockheed Martin along with
Northrop Grumman (NOC - Free Report) and General Dynamics (GD - Free Report) .
Northrop Grumman is a prominent developer of missile systems and counter systems, including strategic deterrents, as well as sub-systems and components. In fact, to strengthen its position in the missile market, Northrop acquired Orbital ATK in 2018, which used to be one of the industry leaders in providing missile components across air-, sea- and land-based systems.
Northrop Grumman boasts a long-term earnings growth rate of 6.1%. The Zacks Consensus Estimate for NOC’s 2022 sales indicates an improvement of 2.6% from the 2021 reported figure.
General Dynamics’ Ordnance and Tactical Systems is the system integrator of the 2.75-inch Hydra-70 family of rockets. It also produces composite rocket motor cases and launch tubes for tactical and strategic missiles.
General Dynamics boasts a long-term earnings growth rate of 9.8%. The Zacks Consensus Estimate for GD’s 2022 sales indicates an improvement of 2.7% from the 2021 reported figure.
Price Movement
In the past year, Raytheon Technologies’ shares have lost 1.4% compared with the industry’s 3.3% decline.
Image Source: Zacks Investment Research
On the other hand, shares of Lockheed have gained 18.6% against the industry’s 34.3% decline in the past year.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed Martin currently carries a Zacks Rank #3 (Hold), while Raytheon has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.