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.
Teledyne's (TDY) Unit Wins $114M Contract for Missile Defense
Read MoreHide Full Article
Teledyne Technologies, Inc.’s (TDY - Free Report) subsidiary, Teledyne Brown Engineering, recently received a $114-million contract from the U.S. Army Space and Missile Defense Command.
Teledyne Brown Engineering will be in charge of designing, producing and launching realistic-threat ballistic target missiles under this contract, which are essential for testing cutting-edge missile defense systems.
What’s Favoring TDY?
Rapidly increasing geopolitical tensions worldwide, along with heightened regional conflicts in different parts of the globe, like the Middle East, and the Russian invasion of Ukraine, have prompted nations to bolster their defense capabilities. Since missiles constitute a large share of a nation’s defense arsenals, countries are investing heftily these days in advanced missile systems for deterrence and defense. This, in turn, has been boosting the demand for technologically advanced missile systems.
To this end, the Mordor Intelligence firm predicts the global market for missiles and missile defense systems to witness a CAGR of 5% between 2024 and 2029. Such growth opportunities offered by the aforementioned market should bode well for Teledyne, which is a prominent missile component manufacturer.
In particular, Teledyne develops missile defense components and systems, such as radar systems, infrared sensors and electronic warfare solutions, which are critical for detecting, tracking and intercepting threats. The company is intimately familiar with all the missile system requirements, from design to production to maintenance. It also supplies energetics, radar, comms and propulsion elements to these systems, as well as relays, connectors, cables, wire and more for missiles.
Peer Moves
As global threats rise, apart from TDY, defense contractors that are likely to benefit from the growth prospects presented by the missiles and missile defense system industry are as follows:
Northrop Grumman (NOC - Free Report) : The company develops and manufactures warheads, fuses, advanced high-speed propulsion systems and other missile components. It is a leading supplier of solid rocket propulsion for air-launched missiles, interceptors, submarine-launched weapons and hypersonic missile systems.
Northrop has a long-term (three to five years) earnings growth rate of 8.7%. The Zacks Consensus Estimate for NOC’s 2024 sales suggests growth of 5.4% from the prior-year reported figure.
Lockheed Martin (LMT - Free Report) : The company’s Missiles and Fire Control business unit develops, manufactures and supports advanced missiles and rockets. Some of its renowned products are the PAC-3 family of missiles, M270, RRPR and THHAD.
Lockheed has a long-term earnings growth rate of 4.7%. The Zacks Consensus Estimate for LMT’s 2024 sales implies growth of 5.3% from the prior-year reported figure.
The Boeing Company (BA - Free Report) : For almost 25 years, the company has been providing air and missile defense systems to the United States, its allies, and international partners. Its offerings include the Avenger Air Defense System and Ground-Based Midcourse Defense.
Boeing boasts a long-term earnings growth rate of 21.3%. The Zacks Consensus Estimate for BA’s 2025 sales implies growth of 20.3% from the prior-year projected figure.
Price Movement
In the past three months, shares of Teledyne have risen 5% compared with the industry’s growth of 6%.
Image: Bigstock
Teledyne's (TDY) Unit Wins $114M Contract for Missile Defense
Teledyne Technologies, Inc.’s (TDY - Free Report) subsidiary, Teledyne Brown Engineering, recently received a $114-million contract from the U.S. Army Space and Missile Defense Command.
Teledyne Brown Engineering will be in charge of designing, producing and launching realistic-threat ballistic target missiles under this contract, which are essential for testing cutting-edge missile defense systems.
What’s Favoring TDY?
Rapidly increasing geopolitical tensions worldwide, along with heightened regional conflicts in different parts of the globe, like the Middle East, and the Russian invasion of Ukraine, have prompted nations to bolster their defense capabilities. Since missiles constitute a large share of a nation’s defense arsenals, countries are investing heftily these days in advanced missile systems for deterrence and defense. This, in turn, has been boosting the demand for technologically advanced missile systems.
To this end, the Mordor Intelligence firm predicts the global market for missiles and missile defense systems to witness a CAGR of 5% between 2024 and 2029. Such growth opportunities offered by the aforementioned market should bode well for Teledyne, which is a prominent missile component manufacturer.
In particular, Teledyne develops missile defense components and systems, such as radar systems, infrared sensors and electronic warfare solutions, which are critical for detecting, tracking and intercepting threats. The company is intimately familiar with all the missile system requirements, from design to production to maintenance. It also supplies energetics, radar, comms and propulsion elements to these systems, as well as relays, connectors, cables, wire and more for missiles.
Peer Moves
As global threats rise, apart from TDY, defense contractors that are likely to benefit from the growth prospects presented by the missiles and missile defense system industry are as follows:
Northrop Grumman (NOC - Free Report) : The company develops and manufactures warheads, fuses, advanced high-speed propulsion systems and other missile components. It is a leading supplier of solid rocket propulsion for air-launched missiles, interceptors, submarine-launched weapons and hypersonic missile systems.
Northrop has a long-term (three to five years) earnings growth rate of 8.7%. The Zacks Consensus Estimate for NOC’s 2024 sales suggests growth of 5.4% from the prior-year reported figure.
Lockheed Martin (LMT - Free Report) : The company’s Missiles and Fire Control business unit develops, manufactures and supports advanced missiles and rockets. Some of its renowned products are the PAC-3 family of missiles, M270, RRPR and THHAD.
Lockheed has a long-term earnings growth rate of 4.7%. The Zacks Consensus Estimate for LMT’s 2024 sales implies growth of 5.3% from the prior-year reported figure.
The Boeing Company (BA - Free Report) : For almost 25 years, the company has been providing air and missile defense systems to the United States, its allies, and international partners. Its offerings include the Avenger Air Defense System and Ground-Based Midcourse Defense.
Boeing boasts a long-term earnings growth rate of 21.3%. The Zacks Consensus Estimate for BA’s 2025 sales implies growth of 20.3% from the prior-year projected figure.
Price Movement
In the past three months, shares of Teledyne have risen 5% compared with the industry’s growth of 6%.
Image Source: Zacks Investment Research
Zacks Rank
Teledyne currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.