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.
Lockheed (LMT) Wins $101M Contract to Support HIMARS/MLRS
Read MoreHide Full Article
Lockheed Martin Corp.’s (LMT - Free Report) business segment, Missile and Fire Control (“MFC”), recently clinched a modification contract involving High Mobility Artillery Rocket Systems/ Multiple Launch Rocket System (HIMARS/MLRS). Valued at $100.9 million, the deal has been awarded by the U.S. Army Contracting Command, Redstone Arsenal, AL.
Per the deal, LMT will provide launcher-loader module logistics support services for HIMARS/MLRS fire control systems. The contract is expected to be completed by Dec 31, 2025. The work related to the deal will be carried out at multiple locations in the United States.
What’s Favoring Lockheed?
Nations are reinforcing their military capabilities to strengthen their defense structure in the growing threat environment. In this context, increased spending has been witnessed on missile capabilities, resulting in a significant order inflow for companies like Lockheed Martin, which enjoy a dominant position in the development of missiles.
Its HIMARS is the most technically advanced, affordable and sustainable artillery solution that provides cutting-edge technology on an indigenous platform. HIMARS carries a six-pack of GMLRS rockets or one TACMS missile and is designed to launch the entire MLRS family of munitions.
Apart from this, LMT boasts an impressive range of missiles like Trident II D5, Precision Strike Missile, PAC3 and a few more. Such a remarkable portfolio stands to gain from the heightened demand environment and enables the company to secure impressive contracts from the Pentagon, like the latest one. This tends to boost Lockheed’s revenue generation prospects.
Growth Prospects
Per a report from the Mordor Intelligence firm, the missile and missile defense system market is likely to witness a CAGR of more than 4.8% during the 2023-2028 period. LMT’s proficiency in missile manufacturing positions it favorably to capitalize on such growth opportunities.
Other defense companies that stand to benefit from the expanding missile market are as follows:
Northrop Grumman (NOC - Free Report) : Northrop is a prominent developer of missile systems and counter systems, including strategic deterrents, subsystems and components. To strengthen its position in the missile market, the company 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.
NOC boasts a long-term earnings growth rate of 2.4%. The Zacks Consensus Estimate for Northrop’s 2023 sales indicates an improvement of 6.4% from the 2022 reported figure.
General Dynamics (GD - Free Report) : 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.
GD boasts a long-term earnings growth rate of 8.9%. The Zacks Consensus Estimate for General Dynamics’ 2023 sales indicates growth of 9% from the 2022 reported figure.
RTX Corp. (RTX - Free Report) : RTX’s business unit, Missiles and Defense, is a prominent U.S. missile maker. Its portfolio includes the AIM-9X Sidewinder missile, AIM-9X Block II missile, RAM-guided missile weapon system, etc.
RTX boasts a long-term earnings growth rate of 9.4%. Its share price has appreciated 9.1% in the past month.
Price Movement
In the past month, shares of Lockheed Martin have increased 1% compared with the industry’s 4.7% growth.
Image: Bigstock
Lockheed (LMT) Wins $101M Contract to Support HIMARS/MLRS
Lockheed Martin Corp.’s (LMT - Free Report) business segment, Missile and Fire Control (“MFC”), recently clinched a modification contract involving High Mobility Artillery Rocket Systems/ Multiple Launch Rocket System (HIMARS/MLRS). Valued at $100.9 million, the deal has been awarded by the U.S. Army Contracting Command, Redstone Arsenal, AL.
Per the deal, LMT will provide launcher-loader module logistics support services for HIMARS/MLRS fire control systems. The contract is expected to be completed by Dec 31, 2025. The work related to the deal will be carried out at multiple locations in the United States.
What’s Favoring Lockheed?
Nations are reinforcing their military capabilities to strengthen their defense structure in the growing threat environment. In this context, increased spending has been witnessed on missile capabilities, resulting in a significant order inflow for companies like Lockheed Martin, which enjoy a dominant position in the development of missiles.
Its HIMARS is the most technically advanced, affordable and sustainable artillery solution that provides cutting-edge technology on an indigenous platform. HIMARS carries a six-pack of GMLRS rockets or one TACMS missile and is designed to launch the entire MLRS family of munitions.
Apart from this, LMT boasts an impressive range of missiles like Trident II D5, Precision Strike Missile, PAC3 and a few more. Such a remarkable portfolio stands to gain from the heightened demand environment and enables the company to secure impressive contracts from the Pentagon, like the latest one. This tends to boost Lockheed’s revenue generation prospects.
Growth Prospects
Per a report from the Mordor Intelligence firm, the missile and missile defense system market is likely to witness a CAGR of more than 4.8% during the 2023-2028 period. LMT’s proficiency in missile manufacturing positions it favorably to capitalize on such growth opportunities.
Other defense companies that stand to benefit from the expanding missile market are as follows:
Northrop Grumman (NOC - Free Report) : Northrop is a prominent developer of missile systems and counter systems, including strategic deterrents, subsystems and components. To strengthen its position in the missile market, the company 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.
NOC boasts a long-term earnings growth rate of 2.4%. The Zacks Consensus Estimate for Northrop’s 2023 sales indicates an improvement of 6.4% from the 2022 reported figure.
General Dynamics (GD - Free Report) : 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.
GD boasts a long-term earnings growth rate of 8.9%. The Zacks Consensus Estimate for General Dynamics’ 2023 sales indicates growth of 9% from the 2022 reported figure.
RTX Corp. (RTX - Free Report) : RTX’s business unit, Missiles and Defense, is a prominent U.S. missile maker. Its portfolio includes the AIM-9X Sidewinder missile, AIM-9X Block II missile, RAM-guided missile weapon system, etc.
RTX boasts a long-term earnings growth rate of 9.4%. Its share price has appreciated 9.1% in the past month.
Price Movement
In the past month, shares of Lockheed Martin have increased 1% compared with the industry’s 4.7% growth.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed Martin currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.