Northrop Grumman Corporation
) has received a four-year contract worth $318 million from the
Defense Intelligence Agency ("DIA"). Per the Enterprise
Application Development and Integration Support task order, the
company will support the full software development life cycle of
DIA's consolidated and efficient enterprise-centric information
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Under the contract, Northrop will also design, develop,
integrate, test and deploy requirements, tasks and technical
support services to DIA's Chief Information Office.
This contract demonstrates the company's long-standing
partnership with DIA. DIA is one of the sub agencies of the
Department of Defense (DoD). It provides foreign military
intelligence information to key decision makers. Like DIA,
Defense Advanced Research Projects Agency (DARPA) and Defense
Information Systems Agency (DISA) are also sub agencies of the
DoD from which Northrop has been receiving contracts on a
In March this year, Northrop was selected to support DISA to
update and maintain the command and control system for the Global
Command and Control System-Joint engineering support services.
Other big aerospace and defense players have also been receiving
contracts from these defense agencies. In March this year,
Lockheed Martin Corporation
) received a Long Range Anti-Ship Missile modification contract
from DARPA to conduct air- and surface-launched flight tests and
other risk reduction activities.
Northrop has a strong presence in Air Force, Space & Cyber
Security programs. The company's product line is well positioned
in high priority categories, such as defense electronics,
unmanned aircraft and missile defense. Going forward, with these
contracts in hand and its cash deployment strategy, we expect the
company to continue to generate strong earnings like it did in
the first quarter. The company presently retains a short-term
Zacks Rank #2 (Buy).
Other stocks worth considering are
Erickson Air-Crane Inc.
Wesco Aircraft Holdings, Inc.
). While Erickson Air-Crane carries a Zacks Rank #1 (Strong
Buy), Wesco Aircraft holds a Zacks Rank #2 (Buy).