General Dynamics Secures Contract for Submarine Tethered Buoy Systems

General Dynamics Corporation’s GD business unit, Mission Systems, recently clinched a contract for engineering, technical support and production of submarine tethered expendable buoy systems. These buoy systems will be deployed on new construction and in-service submarines. The award has been offered by the Naval Sea Systems Command, Washington, D.C.Valued at $91.2 million, the contract is expected to be completed by August 2030. The work related to this deal will be executed in Manassas, VA.GD’s Growth ProspectsRising military tensions, terrorism and border disputes are pushing nations to prioritize national security and invest in strengthening their naval fleet, of which submarine constitutes a major part. This growth is supported by higher demand for advanced technologies such as stealth features, underwater monitoring and long-range strike capabilities, along with the increasing sophistication of modern naval operations.This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 4.2% for the global submarine market during the 2025-2030 time period.Such market growth prospects should benefit General Dynamics, a prominent contractor in the submarine market. Its Mission Systems builds state-of-the-art weapon systems, combat control systems, sonar systems and cybersecurity systems for Virginia-class, Ohio-class and Columbia-class submarines.Opportunities for Other Defense StocksOther defense companies that are likely to enjoy the perks of the expanding global submarine market have been discussed below:Huntington Ingalls Industries HII: Through its Newport News Shipbuilding division, HII is involved in producing the Columbia-class and Virginia-class submarines, two key assets of the U.S. Navy. The company provides fleet services to its submarines around the world, offering modernization, repair and installation services.Huntington has a long-term (three to five years) earnings growth rate of 11.8%. The Zacks Consensus Estimate for HII’s 2025 sales indicates year-over-year growth of 3.7%.BAE Systems BAESY: It plays a vital role in the production of advanced submarines, particularly for the United Kingdom’s defense sector. BAE Systems is the primary manufacturer of the Astute-class nuclear submarines, which are integral to the Royal Navy's fleet.BAE Systems has a long-term earnings growth rate of 14.4%. The Zacks Consensus Estimate for BAESY’s 2025 sales indicates year-over-year growth of 63.4%.Northrop Grumman Corporation NOC: It is a renowned provider of missile launch systems for naval submarines. The company manufactures Launcher Subsystem hardware to support the Columbia and Dreadnought common missile compartment program.Northrop has a long-term earnings growth rate of 3.9%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 2.7%.GD Stock Price MovementShares of General Dynamics have gained 2.5% in the past month compared with the industry’s 1.9% growth.Image Source: Zacks Investment ResearchGD’s Zacks RankGD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>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 General Dynamics Corporation (GD): Free Stock Analysis Report Bae Systems PLC (BAESY): Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks