Lockheed Martin Corp. LMT recently secured a $904.8 million modification contract for the production and delivery of three MH-60R aircraft to the U.S. Navy and 21 of these maritime aircraft to the government of India. The deal has been awarded by the Naval Air Systems Command, Patuxent River, MD.
The contract is scheduled to be completed by September 2024. Majority of work related to this deal will be executed inOwego, NY and Stratford, CT.
A Brief Note on MH-60R Aircraft
The MH-60R Seahawk helicopter, also known as the Seahawk Multi-mission Naval Helicopter, is the world’s most advanced maritime helicopter designed to operate from frigates, destroyers, cruisers and aircraft carriers. The MH-60R is equipped for a range of missions, including anti-submarine warfare, anti-surface warfare, search-and-rescue, naval gunfire support, surveillance, logistics support, personnel transfer and vertical replenishment. Currently, it is operational and deployed with the U.S. Navy as the primary anti-submarine warfare and anti-surface weapon system for Open Ocean and littoral zones.
In recent times, the importance of military helicopters in the U.S. aerospace-defense market has increased due to advancements and integration of new tactical and logistical features along with the inclusion of improved radar systems and the availability of advanced system engineering services. Such crucial developments have been boosting the demand for combat helicopters and Lockheed Martin, being a prominent helicopter manufacturer, has been reaping the benefits.
Looking ahead, the global attack helicopter market is estimated to witness CAGR of more than 4% during the 2020-2025 period, with North America constituting the largest share of this market, per the latest forecast made by market research firm, Mordor Intelligence.This indicates solid opportunities for Lockheed Martin.
A few other prominent players in the aforementioned market like Boeing BA and Textron TXT are also expected to benefit.
Lockheed Martin’s stock has gained 7.6% in the past year against the industry’s decline of 32.5%.
Zacks Rank & Stock to Consider
Lockheed Martin currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the same sector is Elbit Systems ESLT, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Elbit Systems pulled off positive earnings surprise of 11.26% in the last reported quarter. The Zacks Consensus Estimate for 2020earnings indicates an annual improvement of 12.7%.
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The Boeing Company (BA) : Free Stock Analysis Report
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Textron Inc. (TXT) : Free Stock Analysis Report
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