Lockheed Martin (LMT) Secures $168M Deal for LRASM Program

Lockheed Martin Corp’s LMT Missiles and Fire Control unit recently secured a $167.5-million contract for procuring 48 long-range anti-ship missiles (LRASM) along with tooling and test equipment. The contract was awarded by the Air Force Life Cycle Management Center, Eglin, Air Force Base, FL.

Work related to the deal will be performed in Orlando, FL, and is scheduled to be completed by Apr 6, 2023.

Rising Demand of the LRASM Technology

Lockheed Martin’s LRASM integrates an enhanced digital anti-jam Global Positioning System to detect and destroy specific targets among a group of ships in the sea. The upgrade of the LRASM technologies in recent times has led to reduced dependence on ISR platforms, network links and GPS navigation in an aggressive electronic warfare environment. Moreover, the LRASM provides range, survivability and lethality, unlike other Anti-Ship Missile systems. As a result, the LRASM is increasingly becoming popular among the U.S. Air Force and Navy.

What Favors Lockheed Martin?

Increasing geopolitical tensions across the globe have prompted many nations to expand their military arsenal, with missiles constituting a significant part of that. Lockheed Martin, being one of the major missile makers in the United States, stands out among peers by virtue of its broadly-diversified programs and strong order bookings for different variants of missiles.

Per Markets and Markets research firm, the global rocket and missile market is projected to rise from $55.5 billion in 2017 to $70 billion by 2022, at a CAGR of 4.74%. Rapidly rising demand for missiles, rockets and associated components has been fueling the growth opportunities of the aforementioned market. Such projections will certainly benefit prominent missile maker, Lockheed Martin, going ahead.

Other Missile Makers Poised to Benefit

The aforementioned global rocket and missile market projection also reflect increased growth opportunities for other major missile-players like General Dynamics GD, Northrop Grumman NOC and Boeing BA, going ahead.

Notably, Northrop Grumman manufactures a wide variety of air, sea and land-based missile systems propulsion control systems that support the U.S. Missile Defense Agency (MDA). It also produces airborne missile warning systems as well as medium-class solid rocket motors for the U.S. Navy's Trident II Fleet Ballistic Missile program.

Boeing’s missile defense capabilities within the Integrated Air & Missile Defense portfolio include Arrow 3, which offers regional missile defense capabilities to enable an effective response to short and medium-range ballistic missiles. It also produces land-based Intercontinental Ballistic Missiles for the U.S. Air Force.

General Dynamics’ Ordnance and Tactical Systems are the system integrator of the 2.75-inch Hydra-70 family of rockets. These rockets include unitary and cargo warheads for use against point and area targets. It also produces composite rocket motor cases and launch tubes for tactical and strategic missiles.

Price Performance & Zacks Rank

Lockheed Martin carries a Zacks Rank #2 (Buy) and has gained 20.8% in the past year against the industry’s 26.7% decline. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
 
The Boeing Company (BA) : Free Stock Analysis Report
 
General Dynamics Corporation (GD) : Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research