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 Martin Wins $61M Sustainment Contract for F-22
Read MoreHide Full Article
Lockheed Martin Corporation’s (LMT - Free Report) aeronautics division, Lockheed Martin Aeronautics Co., won a modification contract for air vehicle sustainment support for the F-22 jets. The contract was awarded by the Air Force Life Cycle Management Center, UT. It is valued at $61 million.
Details of the Contract
Lockheed Martin will provide inlet coating repair, depot throughput, analytical condition inspections, and radar cross-section Marietta turntable support, in addition to touch labor and installs, for the F-22 aircraft.
Work will be executed in Utah and Georgia and is expected to be completed by Dec 31, 2017.
A Brief Note on F-22
Lockheed Martin’s F-22 Raptor is the fifth-generation, single-seat, twin-engine, all-weather stealth tactical fighter aircraft with a unique combination of stealth, speed, agility and situational awareness, along with lethal long-range air-to-air and air-to-ground weaponry.
However, high development costs, ban on exports, and development of the more versatile F-35 aircraft led to the discontinuation of F-22 production.
What's Favoring Lockheed?
During the third quarter, Lockheed Martin raised its ownership interest in the AWE Management Limited (AWE) venture, which operates the UK’s nuclear deterrent program, by 18%. As a result, the company now holds a 51% controlling interest in the AWE venture. Management expects this venture to contribute $400 million to sales in 2016 and around $1–$1.1 billion in 2017.
Moreover, it is the largest U.S. defense contractor with a platform-centric focus that guarantees a regular inflow of follow-on orders from a leveraged presence in the U.S. Army, Air Force, Navy and IT programs.
Price Movement
Lockheed Martin has outperformed the Zacks categorized Aerospace/Defense industry over the last 12 months. The company’s current rate of return is 17.2%, compared to the industry’s average return of 13%.
This could be because the company continues to witness a steady flow of contracts from the Pentagon and other international customers.
Zacks Rank & Key Picks
Lockheed Martin currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in this space include Engility Holdings, Inc. , Leidos Holdings, Inc. (LDOS - Free Report) and General Dynamics Corporation (GD - Free Report) .
On an average, Engility has delivered a positive earnings surprise of 23.19% in the trailing four quarters. Engility sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Leidos Holdings carries a Zacks Rank #2 (Buy). The company has delivered a positive earnings surprise of 12.20% in the trailing four quarters.
General Dynamics, another Zacks Rank #2 stock, delivered a positive earnings surprise of 5.55% in the trailing four quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lockheed Martin Wins $61M Sustainment Contract for F-22
Lockheed Martin Corporation’s (LMT - Free Report) aeronautics division, Lockheed Martin Aeronautics Co., won a modification contract for air vehicle sustainment support for the F-22 jets. The contract was awarded by the Air Force Life Cycle Management Center, UT. It is valued at $61 million.
Details of the Contract
Lockheed Martin will provide inlet coating repair, depot throughput, analytical condition inspections, and radar cross-section Marietta turntable support, in addition to touch labor and installs, for the F-22 aircraft.
Work will be executed in Utah and Georgia and is expected to be completed by Dec 31, 2017.
A Brief Note on F-22
Lockheed Martin’s F-22 Raptor is the fifth-generation, single-seat, twin-engine, all-weather stealth tactical fighter aircraft with a unique combination of stealth, speed, agility and situational awareness, along with lethal long-range air-to-air and air-to-ground weaponry.
However, high development costs, ban on exports, and development of the more versatile F-35 aircraft led to the discontinuation of F-22 production.
What's Favoring Lockheed?
During the third quarter, Lockheed Martin raised its ownership interest in the AWE Management Limited (AWE) venture, which operates the UK’s nuclear deterrent program, by 18%. As a result, the company now holds a 51% controlling interest in the AWE venture. Management expects this venture to contribute $400 million to sales in 2016 and around $1–$1.1 billion in 2017.
Moreover, it is the largest U.S. defense contractor with a platform-centric focus that guarantees a regular inflow of follow-on orders from a leveraged presence in the U.S. Army, Air Force, Navy and IT programs.
Price Movement
Lockheed Martin has outperformed the Zacks categorized Aerospace/Defense industry over the last 12 months. The company’s current rate of return is 17.2%, compared to the industry’s average return of 13%.
This could be because the company continues to witness a steady flow of contracts from the Pentagon and other international customers.
Zacks Rank & Key Picks
Lockheed Martin currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in this space include Engility Holdings, Inc. , Leidos Holdings, Inc. (LDOS - Free Report) and General Dynamics Corporation (GD - Free Report) .
On an average, Engility has delivered a positive earnings surprise of 23.19% in the trailing four quarters. Engility sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Leidos Holdings carries a Zacks Rank #2 (Buy). The company has delivered a positive earnings surprise of 12.20% in the trailing four quarters.
General Dynamics, another Zacks Rank #2 stock, delivered a positive earnings surprise of 5.55% in the trailing four quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>