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Northrop (NOC) Wins $12.7M Deal for Non-Standard Ammunition
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Northrop Grumman Corporation (NOC - Free Report) recently secured a contract involving the procurement of non-standard ammunition. The U.S. Army Contracting Command, Rock Island Arsenal, IL, has awarded the deal.
Valued at $12.7 million, the work is scheduled to be completed by Dec 31, 2024.
What’s Favoring Northrop Grumman?
A strong defense structure acts as a deterrent against potential threats. The need to strengthen the defense structure has thrived the demand for technologically advanced arms and ammunition, across the globe. The highly sought-after demand for military ammunition acts as a catalyst for the growth of Northrop Grumman, whose technologically advanced products act as a cornerstone for many military warships.
NOC is a leading producer of small, medium and large-caliber tactical and training ammunition for the United States and allied militaries. It is at the forefront of developing new, advanced ammunition types that include armor penetration, air bursting, proximity-fused and guided munitions to enhance lethality and overmatch on the battlefield.
Such strategic capabilities in manufacturing ammunition assist the company in witnessing a steady inflow of orders involving military arms and ammunition, like the latest one.
Growth Prospects
Per a report published by Mordor Intelligence, the global ammunition market is projected to witness a CAGR of 4.1% during the 2023-2028 period. This should benefit NOC and prominent defense majors like General Dynamics (GD - Free Report) and BAE Systems (BAESY - Free Report) as these play a significant role in manufacturing ammunition.
General Dynamics’ Ordnance and Tactical Systems (“OTS”) has a long legacy of producing high-quality ammunition. OTS’ munitions manufacture large-caliber tank ammunition, medium-caliber ammunition, military propellants, mortar and artillery projectiles.
General Dynamics has a long-term earnings growth rate of 8.9%. Its investors have gained 3.1% in the past month.
BAE Systems’ Ordnance Systems produces mass quantities of solvent and solventless propellants to support direct fire, indirect fire and rocket applications. It is also a major supplier of explosive materials to the U.S. Department of Defense.
The long-term growth rate of BAESY is projected at 13.7%. Its shares have rallied 21.9% in the past year.
Price Movement
In the past month, shares of Northrop Grumman have risen 2.9% compared with the industry’s growth of 1.7%.
The Zacks Consensus Estimate for Spire’s 2023 sales suggests a growth rate of 32.9% from the prior-year reported figure. The Zacks Consensus Estimate for Spire’s 2024 sales calls for a growth rate of 34.3% from the prior-year estimated figure.
The company delivered an earnings surprise of 16.67% in the last reported quarter. SPIR has a four-quarter average earnings surprise of 10.37%.
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Northrop (NOC) Wins $12.7M Deal for Non-Standard Ammunition
Northrop Grumman Corporation (NOC - Free Report) recently secured a contract involving the procurement of non-standard ammunition. The U.S. Army Contracting Command, Rock Island Arsenal, IL, has awarded the deal.
Valued at $12.7 million, the work is scheduled to be completed by Dec 31, 2024.
What’s Favoring Northrop Grumman?
A strong defense structure acts as a deterrent against potential threats. The need to strengthen the defense structure has thrived the demand for technologically advanced arms and ammunition, across the globe. The highly sought-after demand for military ammunition acts as a catalyst for the growth of Northrop Grumman, whose technologically advanced products act as a cornerstone for many military warships.
NOC is a leading producer of small, medium and large-caliber tactical and training ammunition for the United States and allied militaries. It is at the forefront of developing new, advanced ammunition types that include armor penetration, air bursting, proximity-fused and guided munitions to enhance lethality and overmatch on the battlefield.
Such strategic capabilities in manufacturing ammunition assist the company in witnessing a steady inflow of orders involving military arms and ammunition, like the latest one.
Growth Prospects
Per a report published by Mordor Intelligence, the global ammunition market is projected to witness a CAGR of 4.1% during the 2023-2028 period. This should benefit NOC and prominent defense majors like General Dynamics (GD - Free Report) and BAE Systems (BAESY - Free Report) as these play a significant role in manufacturing ammunition.
General Dynamics’ Ordnance and Tactical Systems (“OTS”) has a long legacy of producing high-quality ammunition. OTS’ munitions manufacture large-caliber tank ammunition, medium-caliber ammunition, military propellants, mortar and artillery projectiles.
General Dynamics has a long-term earnings growth rate of 8.9%. Its investors have gained 3.1% in the past month.
BAE Systems’ Ordnance Systems produces mass quantities of solvent and solventless propellants to support direct fire, indirect fire and rocket applications. It is also a major supplier of explosive materials to the U.S. Department of Defense.
The long-term growth rate of BAESY is projected at 13.7%. Its shares have rallied 21.9% in the past year.
Price Movement
In the past month, shares of Northrop Grumman have risen 2.9% compared with the industry’s growth of 1.7%.
Image Source: Zacks Investment Research
Zacks Rank
Northrop Grumman currently carries a Zacks Rank #3 (Hold). One better-ranked stock from the same industry is Spire (SPIR - Free Report) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Spire’s 2023 sales suggests a growth rate of 32.9% from the prior-year reported figure. The Zacks Consensus Estimate for Spire’s 2024 sales calls for a growth rate of 34.3% from the prior-year estimated figure.
The company delivered an earnings surprise of 16.67% in the last reported quarter. SPIR has a four-quarter average earnings surprise of 10.37%.