The largest U.S. defense operator
Lockheed Martin Corporation
) recently received two contracts from the Department of Defense
(DoD). Together these contracts fetched $24.1 million and are
part of number of contracts awarded by the DoD on Jan 2.
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The largest among these two defense contracts is worth $14.4
million. Per the contract, Lockheed will produce one Mission
Signal Processor equipment suite and two array simulator cabinets
in support of the Aegis Training and Readiness Center.
The second contract is worth $9.7 million. This is for a
modification to the previously awarded contract
(N00024-11-C-5302) for MK 41 Vertical Launching System AEGIS
Modernization module electronics production.
Recently, Lockheed received a $574.5 million order to build the
Aegis weapon system for the U.S. Navy. Aegis weapon system will
enhance the capability of the Navy, as it can defend beyond its
line of sight by integrating data from a remote sensor to
intercept a target.
Although small, these new contracts are logical extensions to the
previous contracts. The proper training of personnel in the new
weapon system is essential, which enables them to use it
effectively during a combat.
In the past seven days, Lockheed has received a series of
contracts from the DoD. The combined value of those contracts
exceeded $1 billion. These defense deals bear testimony to the
cutting edge technology and the wide range of products at the
disposal of Lockheed.
Apart from Lockheed, defense operator
Northrop Grumman Corporation
) also received a defense contract worth $12.1 million from the
U.S. Navy. Per the contract, the company will procure 11
AN/APR-39D(V)2 test assets for various naval aviation platforms,
including testing support and travel costs.
Lockheed currently has a Zacks Rank #2 (Buy). Other players in
the aerospace/defense sector, which look attractive at current
Huntington Ingalls Industries, Inc.
Alliant Techsystems Inc.
). All these stocks carry the same rank as Lockheed.