Lockheed Martin Corp.’s LMT Space business unit recently clinched a modification contract involving support for a missile flight test. The award has been offered by the Strategic Systems Programs, Washington, D.C.
Details of the Deal
The contract is valued at $193.8 million and is expected to be completed by Feb 25, 2025. Per the terms of the deal, Lockheed will provide design, development, build, and integration of equipment for missile flight test demonstrations and fielding.
A major portion of the work related to this contract will be carried out in Littleton, CO.
What’s Favoring Lockheed?
Increasing geopolitical and socioeconomic turmoil worldwide has prompted nations, both developed and developing, to expand their respective military arsenal, with missiles constituting a significant portion of that inventory.
Notably, Lockheed’s Space business unit, apart from developing satellites and space transportation systems, also builds strike missiles as well as missile defense systems.
As one of the major missile makers in the United States and with such remarkable missile and missile warning systems in its product portfolio, Lockheed enjoys a strong demand base in the missile defense market. The latest contract win is a bright example of that.
Growth Prospects
Per a report from the Mordor Intelligence firm, the missiles and missile defense system market is anticipated to witness a CAGR of 4.8% during the 2024-2029 period. Such an expanding market is likely to benefit LMT as it enjoys a solid position in the military missile market.
Some other prominent defense majors that have a strong position in the missile and associated parts manufacturing industry and are thus also likely to enjoy the perks of the expanding missile defense market have been discussed below.
Price Movement
In the past year, shares of Lockheed have lost 11.4% compared with the industry’s decline of 12.2%.
Image Source: Zacks Investment Research
Zacks Rank
Lockheed currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
