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Northrop's (NOC) Unit Wins $3.9B Deal to Aid Minuteman ICBM
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Northrop Grumman Corp.’s (NOC - Free Report) business unit, Northrop Grumman Systems Corp., recently clinched a contract to provide ground subsystems support for Minuteman III Intercontinental Ballistic Missile. The award has been offered by the Air Force Nuclear Weapons Center, Hill AFB, UT.
Details of the Deal
Valued at $3.86 billion, the contract is expected to get completed by Jul 6, 2039. Northrop will offer sustaining engineering, maintenance engineering, test and assessment, modification of systems and equipment, software maintenance, developmental engineering, production engineering, repair and procurement involving the Minuteman III missile.
Work related to the deal will be executed in Hill AFB, UT; Vandenberg AFB, CA; Malmstrom AFB, MT; Minot AFB, ND; FE Warren AFB, WY; and Offutt AFB, NE.
Usage of Minuteman III ICBM
The Minuteman III ICBM, built by Boeing (BA - Free Report) , is a strategic weapon system using a ballistic missile of intercontinental range. These ballistic missiles are dispersed in hardened silos to protect against attack and connected to an underground launch control center through a system of hardened cables.
Missile Demand & Northrop
In recent times, heightened geopolitical tensions, conflicts and rising terrorism across the globe have compelled nations to fortify their military arsenals, with ballistic missile systems constituting an integral part of it. Such inflating missile demand has significantly boosted the business of major missile makers, such as Northrop Grumman.
Notably, the company is a prominent developer of missile systems, and counter systems, including strategic deterrents, as well as subsystems and components. In fact, to strengthen its position in the missile market, Northrop 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. Since then, Northrop has been witnessing increased flow of contracts involving its missile products and associated upgrades. The latest contract win is a bright example of that.
Growth Prospects
Considering the global geopolitical background, which is favorable for missile market growth as a whole, and the fact that the United States is the largest military weapon exporter globally, prominent missile makers in the nation, such as General Dynamics (GD - Free Report) and Raytheon Technologies (RTX - Free Report) , along with Northrop, are poised to benefit.
Notably, General Dynamics’ Ordnance and Tactical Systems are the system integrators 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.
Similarly, Raytheon Technologies' missile defense capabilities include Patriot GEM-T missiles, SM-6 missile destroys cruise missiles and ballistic missiles, and NASAMS, among others.
Shares of Northrop have gained 29.9% in the past year compared with the industry’s growth of 26%.
Image Source: Zacks Investment Research
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Northrop's (NOC) Unit Wins $3.9B Deal to Aid Minuteman ICBM
Northrop Grumman Corp.’s (NOC - Free Report) business unit, Northrop Grumman Systems Corp., recently clinched a contract to provide ground subsystems support for Minuteman III Intercontinental Ballistic Missile. The award has been offered by the Air Force Nuclear Weapons Center, Hill AFB, UT.
Details of the Deal
Valued at $3.86 billion, the contract is expected to get completed by Jul 6, 2039. Northrop will offer sustaining engineering, maintenance engineering, test and assessment, modification of systems and equipment, software maintenance, developmental engineering, production engineering, repair and procurement involving the Minuteman III missile.
Work related to the deal will be executed in Hill AFB, UT; Vandenberg AFB, CA; Malmstrom AFB, MT; Minot AFB, ND; FE Warren AFB, WY; and Offutt AFB, NE.
Usage of Minuteman III ICBM
The Minuteman III ICBM, built by Boeing (BA - Free Report) , is a strategic weapon system using a ballistic missile of intercontinental range. These ballistic missiles are dispersed in hardened silos to protect against attack and connected to an underground launch control center through a system of hardened cables.
Missile Demand & Northrop
In recent times, heightened geopolitical tensions, conflicts and rising terrorism across the globe have compelled nations to fortify their military arsenals, with ballistic missile systems constituting an integral part of it. Such inflating missile demand has significantly boosted the business of major missile makers, such as Northrop Grumman.
Notably, the company is a prominent developer of missile systems, and counter systems, including strategic deterrents, as well as subsystems and components. In fact, to strengthen its position in the missile market, Northrop 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. Since then, Northrop has been witnessing increased flow of contracts involving its missile products and associated upgrades. The latest contract win is a bright example of that.
Growth Prospects
Considering the global geopolitical background, which is favorable for missile market growth as a whole, and the fact that the United States is the largest military weapon exporter globally, prominent missile makers in the nation, such as General Dynamics (GD - Free Report) and Raytheon Technologies (RTX - Free Report) , along with Northrop, are poised to benefit.
Notably, General Dynamics’ Ordnance and Tactical Systems are the system integrators 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.
Similarly, Raytheon Technologies' missile defense capabilities include Patriot GEM-T missiles, SM-6 missile destroys cruise missiles and ballistic missiles, and NASAMS, among others.
Zacks Rank & Price Performance
Northrop carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Northrop have gained 29.9% in the past year compared with the industry’s growth of 26%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>