BAE Systems Secures a Contract for Armored Multi-Purpose Vehicles

BAE Systems Inc.’s BAESY Land and Armaments business unit recently secured a modification contract for procuring 240 Armored Multi-Purpose Vehicles (AMPVs). The award has been offered by the Army Contracting Command, Detroit Arsenal, MI.Valued at $198.4 million, the contract is projected to be completed by May 31, 2028.Growth Prospects for BAESYMany countries are increasing their focus on strengthening national security, which has led to higher demand for modern defense equipment. Armored combat vehicles, such as AMPVs, play an important role in ground operations, so the need for advanced and reliable vehicles continues to grow.BAE Systems is a well-known designer and manufacturer of both tracked and amphibious combat vehicles. In the United States, the company produces and upgrades several key platforms, including the Bradley Fighting Vehicle, M109 self-propelled howitzer, M88 recovery vehicle, in addition to the AMPV.The AMPV is a next-generation, highly survivable vehicle designed to support the future requirements of the U.S. Army and its allies. It is being developed to replace the older M113 Family of Vehicles. The strong demand for AMPVs in the U.S. market is evident from BAE Systems’ $754 million award in March 2024 for procuring AMPVs. The latest contract further reinforces the vehicle’s importance and the solid interest it continues to attract.Opportunities for Other Defense StocksOther defense majors that are likely to reap the benefits of the expanding armored vehicle market are discussed below:Textron Inc. TXT: The company designs, manufactures and sustains next-generation armored combat vehicles for the U.S. military, allied forces, special operations units, law enforcement and civilian agencies worldwide. Its COMMANDO family of vehicles delivers a proven blend of lethality, protection, mobility and durability, featuring a modern design that enhances troop safety while maintaining interior comfort during missions.TXT boasts a long-term (three to five years) earnings growth rate of 10%. The Zacks Consensus Estimate for 2025 sales stands at $14.80 billion, which calls for an increase of 8.1%.RTX Corporation RTX: The company’s business unit, Raytheon, is working to meet the U.S. Army’s requirement for the next-generation XM30 combat vehicle. The XM30 is a modern, tracked armored platform designed for future battlefield challenges, offering superior troop protection and advanced technologies to help soldiers stay ahead of emerging threats.RTX boasts a long-term earnings growth rate of 10.3%. The Zacks Consensus Estimate for 2025 sales stands at $87.04 billion, which implies a jump of 7.8%.General Dynamics Corp. GD: The company’s Land Systems division is a global leader in the design, engineering, production and sustainment of both tracked and wheeled military vehicles. Its M10 Booker is a highly lethal, survivable and mobile direct-fire combat vehicle that blends advanced technologies with proven battlefield design to counter threats across the multi-domain battlespace.GD has a long-term earnings growth rate of 12.8%. The Zacks Consensus Estimate for 2025 sales stands at $51.97 billion, which indicates a rise of 8.9%.BAESY Stock Price MovementIn the past year, BAE Systems shares have risen 53.8% compared with the industry’s growth of 23.7%.Image Source: Zacks Investment ResearchBAESY’s Zacks RankBAE Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>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 General Dynamics Corporation (GD): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report Bae Systems PLC (BAESY): Free Stock Analysis Report RTX Corporation (RTX): 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