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Lockheed Martin to Deliver Two C-130J Super Hercules to Egypt

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Lockheed Martin Corporation (LMT - Free Report) is set to deliver two C-130J-30 Super Hercules tactical airlifters to Egypt as part of a foreign military sale facilitated by the U.S. Air Force. This was revealed at the Egypt International Air Show.
 
With these new airlifters, Egypt will join seven other countries in the Middle East North Africa region that rely on C-130J as a primary tactical airlift and tanker solution.

More on LMT’s C-130J

Lockheed Martin’s C-130J Super Hercules is one of the most sought-after tactical airlifters in the world. With rising global tensions, more nations are investing in technologically advanced aircraft that can perform well in difficult situations to boost their aerial security. The C-130J is uniquely positioned to perform well on the battlefield, thanks to its proven ability to handle a variety of mission-critical scenarios.

The aircraft’s versatility has made it essential in air fleet worldwide. With more than 545 units delivered and 3 million flight hours logged, the Super Hercules program continues to strengthen Lockheed Martin’s presence in the global defense market, enabling it to secure new contracts and expand its customer base.

LMT’s Growth Opportunities

With rising global geopolitical tensions, nations are rapidly augmenting their defense purchase to strengthen their warfare capabilities. This has led to an increased demand for fighter jets, which form an integral part of a country’s defense program.

Per a report by Mordor Intelligence, the global military aviation market is expected to witness a CAGR of 5.2% during the 2024-2029 period. Such projections indicate immense opportunities for Lockheed Martin to reap the benefits of the military aviation market's expansion. The company’s Aeronautics business segment is engaged in the research, design, development, manufacture, integration, sustainment and support of advanced military aircraft.

Notably, Aeronautics’ major programs include the F-35 Lightning II fighter jet, the F-16 Fighting Falcon jet, the F-16 Fighting Falcon jet and the F-22 Raptor stealth fighter aircraft, in addition to the C-130J airlifter.

Prospects of LMT’s Peers

Other defense companies that are likely to enjoy the perks of the expanding global military aviation market have been discussed below.

The Boeing Company (BA - Free Report) is a well-known manufacturer of fighter aircraft.  The company’s product portfolio includes a range of combat-proven aircraft like the P-8, F-15, C-17 Globemaster III and T-7A Red Hawk, as well as F/A-18 and EA-18G.

Boeing has a long-term (three to five years) earnings growth rate of 21.3%. The Zacks Consensus Estimate for BA’s third-quarter 2024 sales indicates year-over-year growth of 10.8%.

Northrop Grumman (NOC - Free Report) is known for its advanced surveillance and air command systems and has been strengthening its portfolio with projects like the E-2D Advanced Hawkeye. These aircraft enhance operational readiness and provide crucial airborne early warning systems.

Northrop Gruman has a long-term earnings growth rate of 8.7%. The Zacks Consensus Estimate for NOC’s 2024 sales indicates year-over-year growth of 5.4%.

RTX Corporation (RTX - Free Report) provides advanced engines for military aircraft through its Pratt and Whitney business division. Currently, more than 7,000 Pratt and Whitney military engines are in service with 34 armed forces worldwide.
 
RTX has a long-term earnings growth rate of 10.4%. The Zacks Consensus Estimate for RTX’s 2024 sales indicates year-over-year growth of 7%.

LMT Stock’s Price Movement

Shares of LMT have gained 25.2% in the past three months compared with the industry’s 5.7% growth.

 

Zacks Investment Research
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LMT’s Zacks Rank

LMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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