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General Dynamics (GD) Wins $257M Deal for Booker Combat Vehicle
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General Dynamics Corporation’s (GD - Free Report) business unit, Land Systems, recently clinched a $257.6-million modification contract involving the M10 Booker Combat Vehicle, earlier known as Mobile Protected Firepower.
Per the deal, General Dynamics will be engaged in the second phase of the Low-Rate Initial Production of 26 M10 Booker Combat Vehicles. The contract has been awarded by the U.S. Army.
What’s Favoring General Dynamics?
The M10 Booker Combat is a highly-lethal, survivable and mobile direct-fire combat vehicle that features the recently developed and battle-tested designs to dominate ground threats on the multi-domain battlefield.
It employs a four-person crew and features an enhanced thermal viewer, a large-caliber cannon, a lightweight hull and turret, and a modern diesel engine, transmission and suspension system. It has been designed from the start for capability upgrades based on future operational needs.
In the current scenario of increased defense spending on armored vehicles by nations, the combat vehicle that commands such remarkable features is likely to attract significant orders, like the latest one.
Going forward, per the report from Markets and Markets, the global armored vehicle market is projected to witness a CAGR of 2.7% by 2027. Thus, GD stands to benefit from the aforementioned market growth projections as its Land Systems is a forerunner in manufacturing combat vehicles. This is likely to enhance the defense giant’s revenue generation prospects from combat vehicles.
Peer Moves
Defense majors that are likely to gain from the expanding global armored vehicle market are BAE Systems (BAESY - Free Report) , Northrop Grumman (NOC - Free Report) and Raytheon Technologies (RTX - Free Report) .
BAE Systems designs, manufactures, upgrades and supports tracked, specialty-tracked, and wheeled and amphibious combat vehicles. Some of BAE Systems’ combat vehicles include the Armored Multi-Purpose Vehicle, CV90, CV90MkIV, CV90 IFV, etc.
BAE Systems boasts a long-term earnings growth rate of 13.7%. Shares of BAESY have returned 19.2% in the past year.
Northrop Grumman specializes in innovating low-cost, highly-reliable precise weapons and ammunition for artillery and mortar systems, medium-caliber weapon platforms, battle tanks and individual soldiers.
Northrop’s long-term earnings growth rate is pegged at 3.8%. NOC shares have delivered 0.1% in the past month.
Raytheon is currently teaming up with American Rheinmetall Vehicles to meet the U.S. Army’s current requirement for a true, next-generation Optionally Manned Fighting Vehicle, namely the Lynx Infantry Fighting Vehicle. A next-generation, tracked, armored fighting vehicle, the Lynx Infantry Fighting Vehicle is designed to address the critical challenges of the future battlefield.
Raytheon has a long-term earnings growth rate of 8.3%. RTX shares have increased 3.1% in the past year.
Price Performance
Shares of General Dynamics have increased 0.7% in the past month against the industry’s decline of 0.7%.
Image: Bigstock
General Dynamics (GD) Wins $257M Deal for Booker Combat Vehicle
General Dynamics Corporation’s (GD - Free Report) business unit, Land Systems, recently clinched a $257.6-million modification contract involving the M10 Booker Combat Vehicle, earlier known as Mobile Protected Firepower.
Per the deal, General Dynamics will be engaged in the second phase of the Low-Rate Initial Production of 26 M10 Booker Combat Vehicles. The contract has been awarded by the U.S. Army.
What’s Favoring General Dynamics?
The M10 Booker Combat is a highly-lethal, survivable and mobile direct-fire combat vehicle that features the recently developed and battle-tested designs to dominate ground threats on the multi-domain battlefield.
It employs a four-person crew and features an enhanced thermal viewer, a large-caliber cannon, a lightweight hull and turret, and a modern diesel engine, transmission and suspension system. It has been designed from the start for capability upgrades based on future operational needs.
In the current scenario of increased defense spending on armored vehicles by nations, the combat vehicle that commands such remarkable features is likely to attract significant orders, like the latest one.
Going forward, per the report from Markets and Markets, the global armored vehicle market is projected to witness a CAGR of 2.7% by 2027. Thus, GD stands to benefit from the aforementioned market growth projections as its Land Systems is a forerunner in manufacturing combat vehicles. This is likely to enhance the defense giant’s revenue generation prospects from combat vehicles.
Peer Moves
Defense majors that are likely to gain from the expanding global armored vehicle market are BAE Systems (BAESY - Free Report) , Northrop Grumman (NOC - Free Report) and Raytheon Technologies (RTX - Free Report) .
BAE Systems designs, manufactures, upgrades and supports tracked, specialty-tracked, and wheeled and amphibious combat vehicles. Some of BAE Systems’ combat vehicles include the Armored Multi-Purpose Vehicle, CV90, CV90MkIV, CV90 IFV, etc.
BAE Systems boasts a long-term earnings growth rate of 13.7%. Shares of BAESY have returned 19.2% in the past year.
Northrop Grumman specializes in innovating low-cost, highly-reliable precise weapons and ammunition for artillery and mortar systems, medium-caliber weapon platforms, battle tanks and individual soldiers.
Northrop’s long-term earnings growth rate is pegged at 3.8%. NOC shares have delivered 0.1% in the past month.
Raytheon is currently teaming up with American Rheinmetall Vehicles to meet the U.S. Army’s current requirement for a true, next-generation Optionally Manned Fighting Vehicle, namely the Lynx Infantry Fighting Vehicle. A next-generation, tracked, armored fighting vehicle, the Lynx Infantry Fighting Vehicle is designed to address the critical challenges of the future battlefield.
Raytheon has a long-term earnings growth rate of 8.3%. RTX shares have increased 3.1% in the past year.
Price Performance
Shares of General Dynamics have increased 0.7% in the past month against the industry’s decline of 0.7%.
Image Source: Zacks Investment Research
Zacks Rank
General Dynamics currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.