Lockheed Martin (LMT) Wins Contract for Apache Helicopters

Lockheed Martin Corporation LMT recently won a modification contract involving Apache helicopters. The deal has been awarded by the U.S. Army Contracting Command, Redstone Arsenal, AL.Details of the DealValued at $22.1 million, the contract is expected to be complete by Nov 30, 2024. The latest deal includes the procurement of modernized day sensor assembly kits and spares for Apache helicopters. The work related to this deal will be executed in Orlando, FL.Significance of Apache HelicoptersThe AH-64 Apache is an American twin-turboshaft attack helicopter with a tailwheel-type landing gear arrangement and a tandem cockpit for a crew of two. It features a nose-mounted sensor suite for target acquisition and night vision systems. The stealth helicopter boasts diverse, multi-mission capabilities that enable the military to carry out airborne missions effectively.Due to its remarkable features, its demand may continue to witness a northbound trend, thus enabling Lockheed to win more contracts involving the day sensor and spares for the stealth helicopter. The latest contract win is a testament to that.Growth ProspectsThe military landscape worldwide can be witnessed modernizing and replacing age-old defense products to strengthen defense systems with upgraded and best-in-class military equipment, which can provide countries with a shield against any sudden assault and deter any war-like situation.In this context, an efficient military helicopter that has capability to withstand any airborne military threat is poised to witness an increase in demand going forward.Per Mordor Intelligence projections, the global military helicopter market is expected to witness a CAGR of more than 4% from 2022 to 2031. Such projections exemplify immense opportunities for defense majors to reap the multitude of gains from the expanding market size.Considering the bright growth prospects in the military helicopter space, other prominent defense majors who stand to benefit are Raytheon Technologies RTX, Airbus Group EADSY and Textron TXT.Raytheon Technologies’ Collins Aerospace is one of the world’s leading providers of advanced systems for commercial and military helicopters. It includes helicopters ranging from modernized heavy-lift, utility and SAR helicopters, namely the CH-53K, HH/UH-60M, CH-47F, MH-47G, MH-60L/M, MH-60T and S-70i and cockpit upgrades for CH-47SD and other older aircraft.Raytheon Technologies has a long-term earnings growth rate of 10.5%. RTX’s investors have gained 25.2% in the past year.Airbus Group’s military helicopters comprise the H125M, Military Training H135, H145M, AS565 MBe, H160M, H215M, H225M, Tiger and NH90 (TTH and NFH).Airbus’ long-term earnings growth rate is pegged at 12.4%. The Zacks Consensus Estimate for EADSY’s 2022 sales indicates year-over-year growth of 3%.Textron’s Bell is an industry-leading producer of commercial and military, manned and unmanned vertical-lift aircraft and the pioneer of the revolutionary tiltrotor aircraft. Its military helicopters include Bell 360, Bell V-280, Bell AH-1Z, Bell UH-1Y, Huey II, Bell Boeing V-22 and Bell V-247.Textron boasts a long-term earnings growth rate of 12.7%. The Zacks Consensus Estimate for TXT’s 2022 earnings indicates a growth rate of 21.5% from the prior-year reported figure.Price MovementIn the past year, shares of LMT have rallied 10.2% compared to the industry’s fall of 42%.Image Source: Zacks Investment ResearchZacks RankLockheed Martin currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Just Released: Zacks Top 10 Stocks for 2022In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See 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 Lockheed Martin Corporation (LMT): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report Airbus Group (EADSY): Free Stock Analysis Report Raytheon Technologies Corporation (RTX): Free Stock Analysis Report To read this article on Zacks.com click here.
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