LMT Secures a Contract to Support MK-41 Vertical Launch System

Lockheed Martin Corporation LMT recently clinched a contract to provide logistics, repair and spare support for 161 MK-41 vertical launch system (VLS) components included in the Aegis combat system. The award has been provided by the Naval Supply Systems Command Weapon Systems Support, Philadelphia, PA. The contract is valued at $83.3 million. Work related to this contract will be executed in Moorestown, NJ, and is projected to be completed by November 2029.What’s Favoring LMT?As nations continue to strengthen their defense structure, spending on military arms and ammunition continues to increase. This also includes increased investments in missiles and missile launch systems as they play a critical role in defense missions and act as a deterrent against enemy attacks. Lockheed Martin, as a prominent manufacturer of missiles and missile defense systems, thus continues to witness a steady flow of orders from the Pentagon and U.S. allies. The latest contract win is an example of that.Notably, Lockheed Martin’s MK-41 VLS is a combat-proven missile launcher, which supports missiles for every warfighting domain such as anti-aircraft, anti-surface, anti-submarine, ballistic missile defense and land attack. It enhances operational availability, survivability and versatility while reducing staffing and training requirements.Such notable features of the aforementioned missile launch system of Lockheed Martin are likely to have been boosting their demand, which is further evident from the latest contract win.The solid demand that LMT’s MK-41 VLS enjoys in the missile market can be gauged from the fact that it has been deployed by 13 navies across the globe on more than 26 ship classes, which comprise of more than 180 ships.LMT’s Growth ProspectsRapidly increasing geopolitical tensions worldwide and heightened regional conflicts in different parts of the globe have prompted nations to bolster their defense capabilities.  Since missiles constitute a large share of a nation’s defense arsenals, countries are investing heftily these days in advanced missile systems for deterrence and defense. This, in turn, has been boosting the demand for technologically advanced missile systems and associated devices like missile launchers.This must have prompted Mordor Intelligence to predict that the missile and missile defense systems market will increase from $13.51 billion in 2024 to $17.22 billion by 2029 at a CAGR of 5%.Such growth opportunities offered by the aforementioned market should bode well for Lockheed Martin, with its product portfolio consisting of numerous combat-proven missiles and missile systems that are being bought by multiple nations worldwide.Notably, its Missiles and Fire Control unit is a recognized developer of high-performance missiles. The unit pursues business in more than 50 countries worldwide. Some of its major programs are the Patriot Advanced Capability-3, Terminal High Altitude Area Defense air and missile defense program and Multiple Launch Rocket System. Its prominent missiles include Precision Strike Missile, Joint Air-to-Ground Missile and Hellfire II Missile.Opportunities for PeersOther defense companies that are likely to enjoy the perks of the expanding missile and missile system market have been discussed below.Northrop Grumman Corporation NOC: Northrop Grumman provides high-speed, long-range strike weapons like the AARGM-ER, which is a supersonic, air-launched tactical missile system. It also develops and builds advanced missile defense technology, ranging from command systems to directed energy weapons, advanced munitions and powerful sensors.The company’s long-term (three to five years) earnings growth rate is 19.1%. The Zacks Consensus Estimate for NOC’s 2024 sales indicates year-over-year growth of 5.3%.RTX Corporation RTX: It is known for its missile defense systems like the Patriot and SM-6, which are in high demand globally. RTX also provides advanced sensors and interceptors to identify, track and defeat threats as part of a layered missile defense. The company’s long-term earnings growth rate is 10.2%. The Zacks Consensus Estimate for RTX’s 2024 sales indicates year-over-year growth of 7.2%.The Boeing Company BA: It manufactures various missile defense systems, including the Ground-based Midcourse Defense, Aegis Ballistic Missile Defense and Avenger. Boeing-built and supported air and missile defense systems have been protecting its customers for nearly 25 years against threats ranging from intercontinental ballistic missiles to hostile aircraft.The company has a long-term earnings growth rate of 19.3%. The Zacks Consensus Estimate for BA’s 2025 sales indicates year-over-year growth of 23.4%.LMT Stock’s Price MovementShares of LMT have gained 15.2% in the past six months against the industry’s 3.9% decline.Image Source: Zacks Investment ResearchLMT’s Zacks RankLMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks