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 Contract to Aid Anti-Ship Missile Production
Read MoreHide Full Article
Lockheed Martin Corp.’s (LMT - Free Report) Missiles and Fire Control business unit recently clinched a modification contract involving anti-ship missiles. The award has been offered by the Air Force Life Cycle Management Center, Eglin Air Force Base, FL.
Details of the Deal
Valued at $12 million, the contract is expected to be completed by Jul 18, 2027. This modification brings the total cumulative face value of the contract to $633.3 million.
Per the terms of the deal, Lockheed will be involved in manufacturing of four additional Long Range Anti-Ship Missiles with containers from the 8th lot. The defense contractor will also supply replenishment spares for these missiles to the U.S. Navy.
Work related to this deal will be carried out in Orlando, FL and Troy, AL.
What’s Favoring Lockheed?
Rising geopolitical tensions have led nations across the globe to bolster their missile capabilities to ensure strategic interests and effectively respond to potential threats. Particularly, following the Russian invasion in Ukraine and the ongoing unrest in the Middle-East, thanks to the war between Hamad and Palestine’s military group, the need to defend a country’s border has increased manifold.
On a positive note, technological advancements in missiles have made them more versatile and efficient for nuclear warheads, thereby leading nations to increasingly spend on modernizing their missile arsenals.
Such an increased expenditure tends to be advantageous for LMT as its Missiles and Fire Control business unit excels in manufacturing and supporting advanced missile systems for military customers, including the U.S. Army, Navy, Air Force, Marine Corps and a handful of U.S. allies.
Lockheed’s product portfolio includes notable missiles like GMLRS Munitions, Enhanced Laser Guided Training Round, JASSM and a few more, which have a significant presence in the military weaponry space and continue to witness solid demand. This has led to increased order inflows for LMT to manufacture such missiles for the military, like the latest one, which in turn are expected to boost its revenue generation prospects.
Growth Prospects
With more and more nations ramping up their missile arsenal, the growth prospects for the missile market are gaining increased traction. To this end, it is imperative to mention that the Mordor Intelligence projects the missiles and missile defense system market to witness a CAGR of 4.8% during the 2023-2028 period. Such an expanding market is likely to benefit LMT as it enjoys a solid position in the military missile market.
Other prominent players in the defense landscape poised to gain from the growing missile and missile defense market have been discussed below.
RTX Corporation (RTX - Free Report) : RTX offers a variety of combat-proven missile defense systems, including the Patriot missile, Standard Missile-6 (SM-6), AIM-9X missiles, Standard Missile-3 (SM-3), the Advanced Medium-Range Air-to-Air Missile, the Evolved Seasparrow Missile, the Tomahawk cruise missile and a few more.
RTX’s long-term earnings growth rate is 9.4%. The Zacks Consensus Estimate for RTX’s 2023 sales indicates an improvement of 10.5% from the 2022 reported figure.
Northrop Grumman Corporation (NOC - Free Report) : Northrop manufactures a variety of air, sea and land-based missile systems’ propulsion control systems that support the U.S. Missile Defense Agency. It also produces airborne missile warning systems and medium-class solid rocket motors for the U.S. Navy's Trident II Fleet Ballistic Missile program.
NOC’s long-term earnings growth rate is 2.4%. The Zacks Consensus Estimate for NOC’s 2023 sales indicates an improvement of 6.6% from the 2022 reported figure.
The Boeing Company (BA - Free Report) : Boeing’s missile systems within the Integrated Air & Missile Defense portfolio include Arrow 3, which offers regional missile defense capabilities for an effective response to short and medium-range ballistic missiles. Some other missiles in Boeing’s product portfolio are the supersonic Harpoon missiles, the Bomarc missile, the Thor missile, the AGM-86B/C Air Launched Cruise Missile and the GAM-77 Hound Dog Missile.
BA’s long-term earnings growth rate is 4%. The Zacks Consensus Estimate for BA’s 2023 sales indicates an improvement of 15.6% from the 2022 reported figure.
Price Movement
In the past year, shares of Lockheed have lost 6.9% compared with the industry’s decline of 12.2%.
Image: Bigstock
Lockheed (LMT) Wins Contract to Aid Anti-Ship Missile Production
Lockheed Martin Corp.’s (LMT - Free Report) Missiles and Fire Control business unit recently clinched a modification contract involving anti-ship missiles. The award has been offered by the Air Force Life Cycle Management Center, Eglin Air Force Base, FL.
Details of the Deal
Valued at $12 million, the contract is expected to be completed by Jul 18, 2027. This modification brings the total cumulative face value of the contract to $633.3 million.
Per the terms of the deal, Lockheed will be involved in manufacturing of four additional Long Range Anti-Ship Missiles with containers from the 8th lot. The defense contractor will also supply replenishment spares for these missiles to the U.S. Navy.
Work related to this deal will be carried out in Orlando, FL and Troy, AL.
What’s Favoring Lockheed?
Rising geopolitical tensions have led nations across the globe to bolster their missile capabilities to ensure strategic interests and effectively respond to potential threats. Particularly, following the Russian invasion in Ukraine and the ongoing unrest in the Middle-East, thanks to the war between Hamad and Palestine’s military group, the need to defend a country’s border has increased manifold.
On a positive note, technological advancements in missiles have made them more versatile and efficient for nuclear warheads, thereby leading nations to increasingly spend on modernizing their missile arsenals.
Such an increased expenditure tends to be advantageous for LMT as its Missiles and Fire Control business unit excels in manufacturing and supporting advanced missile systems for military customers, including the U.S. Army, Navy, Air Force, Marine Corps and a handful of U.S. allies.
Lockheed’s product portfolio includes notable missiles like GMLRS Munitions, Enhanced Laser Guided Training Round, JASSM and a few more, which have a significant presence in the military weaponry space and continue to witness solid demand. This has led to increased order inflows for LMT to manufacture such missiles for the military, like the latest one, which in turn are expected to boost its revenue generation prospects.
Growth Prospects
With more and more nations ramping up their missile arsenal, the growth prospects for the missile market are gaining increased traction. To this end, it is imperative to mention that the Mordor Intelligence projects the missiles and missile defense system market to witness a CAGR of 4.8% during the 2023-2028 period. Such an expanding market is likely to benefit LMT as it enjoys a solid position in the military missile market.
Other prominent players in the defense landscape poised to gain from the growing missile and missile defense market have been discussed below.
RTX Corporation (RTX - Free Report) : RTX offers a variety of combat-proven missile defense systems, including the Patriot missile, Standard Missile-6 (SM-6), AIM-9X missiles, Standard Missile-3 (SM-3), the Advanced Medium-Range Air-to-Air Missile, the Evolved Seasparrow Missile, the Tomahawk cruise missile and a few more.
RTX’s long-term earnings growth rate is 9.4%. The Zacks Consensus Estimate for RTX’s 2023 sales indicates an improvement of 10.5% from the 2022 reported figure.
Northrop Grumman Corporation (NOC - Free Report) : Northrop manufactures a variety of air, sea and land-based missile systems’ propulsion control systems that support the U.S. Missile Defense Agency. It also produces airborne missile warning systems and medium-class solid rocket motors for the U.S. Navy's Trident II Fleet Ballistic Missile program.
NOC’s long-term earnings growth rate is 2.4%. The Zacks Consensus Estimate for NOC’s 2023 sales indicates an improvement of 6.6% from the 2022 reported figure.
The Boeing Company (BA - Free Report) : Boeing’s missile systems within the Integrated Air & Missile Defense portfolio include Arrow 3, which offers regional missile defense capabilities for an effective response to short and medium-range ballistic missiles. Some other missiles in Boeing’s product portfolio are the supersonic Harpoon missiles, the Bomarc missile, the Thor missile, the AGM-86B/C Air Launched Cruise Missile and the GAM-77 Hound Dog Missile.
BA’s long-term earnings growth rate is 4%. The Zacks Consensus Estimate for BA’s 2023 sales indicates an improvement of 15.6% from the 2022 reported figure.
Price Movement
In the past year, shares of Lockheed have lost 6.9% compared with the industry’s decline of 12.2%.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.