General Dynamics Wins a $217M Contract to Support DDG-51 Warships

General Dynamics Corp.’s GD business unit, Bath Iron Works, recently clinched a modification contract to provide planning yard support for the DDG 51 warships. The award has been offered by the Supervisor of Shipbuilding, Conversion, and Repair, Bath, ME.Valued at $216.5 million, this contract is expected to be completed by July 31, 2026. The work related to this deal will be carried out in Bath, ME.What’s Favoring GD Stock?Heightened geopolitical tensions worldwide and the resultant need for enhanced maritime security are prompting countries to invest heavily in navy ships designed for modern sea warfare.The consequent rise in demand for warships and associated yard support services has thus benefited combat shipbuilders like General Dynamics, which received solid contract inflows for its combat-proven warships. The latest contract win is a bright example of that.Its Bath Iron Works business unit builds the DDG-51 Arleigh Burke-class guided-missile destroyer warships, which witness significant demand owing to their wide range of advanced warfighting capabilities in multi-threat air, surface and subsurface environments.What Lies Ahead for GD Stock?The rising demand for efficient naval security systems is steadily driving growth in the naval ship market. This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 6.5% for the global naval combat vessels market during the 2025-2030 period.This growth presents a significant revenue generation prospect for General Dynamics, a leading contractor for navy ships. Notably, its Marine Systems segment excels in designing and building surface combatant and auxiliary ships for the U.S. Navy, while also offering modernization and lifecycle extension services. Its unparalleled marine engineering expertise ensures the development of advanced naval capabilities. Such proficiency positions GD to secure more contracts like the latest one, which in turn should boost its revenues in the future.Peer OpportunitiesOther defense companies that are likely to enjoy the perks of the expanding naval combat vessels market have been discussed below:Lockheed Martin LMT: The company manufactures Littoral Combat Ships (LCS). Its freedom-variant LCS is a resilient, flexible warship designed to serve the evolving missions of the U.S. Navy. Its speed, strength and versatility make it a critical tool in crucial missions.Lockheed’s long-term (three to five years) earnings growth rate is 10.5%. The Zacks Consensus Estimate for LMT’s 2025 sales implies an improvement of 4.6% from the 2024 figure.Huntington Ingalls Industries HII: Its business segment designs and constructs non-nuclear ships for the U.S. Navy and the U.S. Coast Guard, including amphibious assault ships, expeditionary warfare ships, surface combatants and national security cutters.Huntington’s long-term earnings growth rate is 11%. The Zacks Consensus Estimate for HII’s 2025 sales indicates an increase of 3.5% from the year-earlier level.BAE Systems BAESY: It designs, builds, commissions, repairs and supports a full range of complex naval ships, from offshore patrol vessels to aircraft carriers. Its Queen Elizabeth Class Aircraft Carriers are the largest warships ever constructed in the United Kingdom.BAESY boasts a long-term earnings growth rate of 11.9%. The Zacks Consensus Estimate for BAE Systems’ 2025 sales indicates growth of 62.5% from the 2024 level.Price PerformanceShares of General Dynamics have risen 11.9% in the past three months compared with the industry’s 7.6% growth.Image Source: Zacks Investment ResearchZacks RankGeneral Dynamics currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Lockheed Martin Corporation (LMT): 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