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.
General Dynamics (GD) Wins $519M Deal to Aid Stryker Combat Vehicle
Read MoreHide Full Article
General Dynamics Corp.’s (GD - Free Report) Land Systems recently clinched a contract to provide technical support for the Stryker battle tank system. The contract has been awarded by the Army Contracting Command, Detroit Arsenal, MI.
Valued at $518.8 million, the contract is expected to be completed by Mar 31, 2029.
What’s Favoring General Dynamics?
Over the past few years, there has been a significant expansion in military spending by nations across the globe. This is because the countries are increasingly focused on modernizing and upgrading their defense systems to meet the current warfare requirements. In such a scenario, the demand for military tanks has increased manifold as these tanks form an integral part of any land warfare system.
Amid such a solid demand trend, General Dynamics stands with Land Systems, the sole-source producer of two foundational products central to the U.S. Army’s warfighting capabilities — the M1A1 Abrams main battle tank and the Stryker wheeled combat vehicle.
Notably, the Stryker is an eight-wheeled, armored combat vehicle that provides an effective mix of capabilities that enables soldiers to successfully execute their missions across the spectrum of operations. All 10 Stryker variants combine maximum commonality and proven performance with low operating and life cycle costs.
To further enhance its growth opportunities in the armored vehicle market, General Dynamics has upgraded its combat-proven armored vehicles. Its Stryker Double-V Hull (DVH) comes with a 450 hp engine to buy back mobility, power, and support a larger alternator. Its power generation system offers improved power pack thermal management with additional environmental conditioning.
Such an evolution in manufacturing state-of-the-art combat vehicles must have enabled General Dynamics to win multiple orders for the Stryker combat vehicle as well as system and sustainment technical support services contracts involving the same, like the latest one. Such contract wins bolster the defense giant’s revenue generation prospects from combat vehicles.
Growth Prospects
The changing dynamics of the military landscape and the rising geopolitical tension have made it mandatory for a country to continuously evolve and strengthen its defense structure. To this end, military tanks form an integral part of any combat mission and land warfare affair.
Going forward, per a report from the Mordor Intelligence firm, the global armored fighting vehicles market is projected to witness a CAGR of 5% during 2024-2029. The expanding size of this market should benefit General Dynamics, with its Land Systems unit being the sole-source producer of two renowned lethal tank fleets — the Abrams battle tank and the Stryker wheeled combat vehicle.
Other defense majors that are likely to benefit from the growing global armored fighting vehicles market are BAE Systems Plc (BAESY - Free Report) , Northrop Grumman (NOC - Free Report) and RTX Corp. (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 are the Armored Multi-Purpose Vehicle, CV90, CV90MkIV, CV90 IFV, etc.
The company currently boasts a long-term earnings growth rate of 12.9%. The Zacks Consensus Estimate for BAESY’s 2024 sales indicates an improvement of 34.1% from the 2023 reported figure.
Northrop Grumman specializes in innovating low-cost, highly reliable and precise weapons and ammunition for battle tanks. Its Bushmaster Chain Gun has been protecting the United States and 65 allied countries across the globe from land, air and naval combat weapon platforms.
The company currently boasts a long-term earnings growth rate of 10.1%. The consensus estimate for NOC’s 2024 sales implies an improvement of 4.6% from the 2023 reported figure.
RTX is currently teaming up with a handful of companies like American Rheinmetall Vehicles as well as Textron, L3Harris Technologies and a few more to meet the U.S. Army’s current requirement for a true, next-generation Optionally Manned Fighting Vehicle, namely the Lynx XM30 Combat Vehicle. This is a next-generation, tracked, armored fighting vehicle, designed to address the critical challenges of the future battlefield.
The company currently boasts a long-term earnings growth rate of 10.2%. The consensus mark for RTX’s 2024 sales implies an improvement of 5.7% from the 2023 reported figure.
Price Movement
In the past year, shares of General Dynamics have risen 27.9% against the industry’s 15% decline.
Image: Bigstock
General Dynamics (GD) Wins $519M Deal to Aid Stryker Combat Vehicle
General Dynamics Corp.’s (GD - Free Report) Land Systems recently clinched a contract to provide technical support for the Stryker battle tank system. The contract has been awarded by the Army Contracting Command, Detroit Arsenal, MI.
Valued at $518.8 million, the contract is expected to be completed by Mar 31, 2029.
What’s Favoring General Dynamics?
Over the past few years, there has been a significant expansion in military spending by nations across the globe. This is because the countries are increasingly focused on modernizing and upgrading their defense systems to meet the current warfare requirements. In such a scenario, the demand for military tanks has increased manifold as these tanks form an integral part of any land warfare system.
Amid such a solid demand trend, General Dynamics stands with Land Systems, the sole-source producer of two foundational products central to the U.S. Army’s warfighting capabilities — the M1A1 Abrams main battle tank and the Stryker wheeled combat vehicle.
Notably, the Stryker is an eight-wheeled, armored combat vehicle that provides an effective mix of capabilities that enables soldiers to successfully execute their missions across the spectrum of operations. All 10 Stryker variants combine maximum commonality and proven performance with low operating and life cycle costs.
To further enhance its growth opportunities in the armored vehicle market, General Dynamics has upgraded its combat-proven armored vehicles. Its Stryker Double-V Hull (DVH) comes with a 450 hp engine to buy back mobility, power, and support a larger alternator. Its power generation system offers improved power pack thermal management with additional environmental conditioning.
Such an evolution in manufacturing state-of-the-art combat vehicles must have enabled General Dynamics to win multiple orders for the Stryker combat vehicle as well as system and sustainment technical support services contracts involving the same, like the latest one. Such contract wins bolster the defense giant’s revenue generation prospects from combat vehicles.
Growth Prospects
The changing dynamics of the military landscape and the rising geopolitical tension have made it mandatory for a country to continuously evolve and strengthen its defense structure. To this end, military tanks form an integral part of any combat mission and land warfare affair.
Going forward, per a report from the Mordor Intelligence firm, the global armored fighting vehicles market is projected to witness a CAGR of 5% during 2024-2029. The expanding size of this market should benefit General Dynamics, with its Land Systems unit being the sole-source producer of two renowned lethal tank fleets — the Abrams battle tank and the Stryker wheeled combat vehicle.
Other defense majors that are likely to benefit from the growing global armored fighting vehicles market are BAE Systems Plc (BAESY - Free Report) , Northrop Grumman (NOC - Free Report) and RTX Corp. (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 are the Armored Multi-Purpose Vehicle, CV90, CV90MkIV, CV90 IFV, etc.
The company currently boasts a long-term earnings growth rate of 12.9%. The Zacks Consensus Estimate for BAESY’s 2024 sales indicates an improvement of 34.1% from the 2023 reported figure.
Northrop Grumman specializes in innovating low-cost, highly reliable and precise weapons and ammunition for battle tanks. Its Bushmaster Chain Gun has been protecting the United States and 65 allied countries across the globe from land, air and naval combat weapon platforms.
The company currently boasts a long-term earnings growth rate of 10.1%. The consensus estimate for NOC’s 2024 sales implies an improvement of 4.6% from the 2023 reported figure.
RTX is currently teaming up with a handful of companies like American Rheinmetall Vehicles as well as Textron, L3Harris Technologies and a few more to meet the U.S. Army’s current requirement for a true, next-generation Optionally Manned Fighting Vehicle, namely the Lynx XM30 Combat Vehicle. This is a next-generation, tracked, armored fighting vehicle, designed to address the critical challenges of the future battlefield.
The company currently boasts a long-term earnings growth rate of 10.2%. The consensus mark for RTX’s 2024 sales implies an improvement of 5.7% from the 2023 reported figure.
Price Movement
In the past year, shares of General Dynamics have risen 27.9% against the industry’s 15% decline.
Image Source: Zacks Investment Research
Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.