Northrop's Arm Wins Contract to Support E-2C & D Hawkeye Jets

Northrop Grumman Corp.’s NOC business unit, Northrop Grumman Systems, recently clinched a modification contract involving its E-2C and E-2D Hawkeye jets. The award has been provided by the Naval Air Systems Command, Patuxent River, MD.Details of NOC’s DealValued at $24.1 million, the contract is expected to be completed by April 2026. Per the terms of the deal, Northrop will provide continued sustainment and technical support to aid E-2C and E-2D aircraft as well as common and unique requirements.The contract includes foreign military sales to the governments of France, Japan, Taiwan and Egypt. The majority of the work related to this deal will be executed in Melbourne, FL, and Misawa, Japan.Significance of NOC’s E-2C & E-2D JetsNorthrop’s E-2D Hawkeye aircraft boasts battle management, theater air, missile defense and multiple sensor fusion capabilities in an airborne system. These provide the warfighter with expanded battlespace awareness, especially in the area of information operations.Through its effective radar sensor and robust network-enabled capability, the Advanced Hawkeye aircraft provides critical, actionable data to joint forces and first responders.On the other hand, Northrop’s E-2C Hawkeye is a modern airborne early warning aircraft that helps the U.S. Navy stay prepared in changing combat situations. It supports missions like air and missile defense by improving how information is shared and used.These features must have been driving strong demand for these fighter jets. The latest contract win reflects another example of the aforementioned jets enjoying significant demand in the military aviation space, which, in turn, should boost NOC’s top-line performance.NOC Stock’s Growth PotentialRising military conflicts, terrorism and border disputes, along with rapid technological advancements in combat jets, have led nations to increase their defense spending on combat-proven jets, which constitute an integral part of their defense structure.This is likely to have prompted the Mordor Intelligence firm to forecast a compound annual growth rate of 4.7% for the global military aviation market during the 2025-2030 period.Such growth prospects should benefit Northrop as its product portfolio offers a wide range of manned and unmanned aircraft that already enjoys an established position in the military aviation market. In addition to the E-2C and E-2D Hawkeye jets, its aircraft portfolio features a wide range of jets such as the A-10 Thunderbolt II, F-5 Tiger, B-2 Spirit Stealth Bomber and several others.Opportunities for LMT’s PeersOther aerospace companies that are likely to benefit from the expanding global military aviation market are discussed below:Embraer ERJ: The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes the A-29 Super Tucano light attack and advanced trainer and the C-390 Millennium military multi-mission aircraft.ERJ delivered an average earnings surprise of 138.39% in the last four quarters. The Zacks Consensus Estimate for ERJ’s 2025 sales indicates year-over-year growth of 15.1%.The Boeing Company BA: The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes the F/A-18 Super Hornet, P-8, F-15EX, CH-47 Chinook, Chinook Block II, EA-18G Growler and a few more.Boeing boasts a long-term (three to five years) earnings growth rate of 17.4%. The Zacks Consensus Estimate for BA’s 2025 sales implies an improvement of 25.7% from the prior-year number.Lockheed Martin Corporation LMT: It is the manufacturer of some of the most advanced military jets in the world. Its key jet programs include the F-35 Lightning II, F-22 Raptor, F-16 Fighting Falcon and C-130 Hercules.Lockheed Martin has a long-term earnings growth rate of 10.6%. The Zacks Consensus Estimate for LMT’s 2025 sales implies year-over-year growth of 4.6%.NOC Stock Price MovementIn the past three months, Northrop’s shares have gained 5% against the industry’s 7.2% decline.Image Source: Zacks Investment ResearchNOC’s Zacks RankNorthrop 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 Embraer-Empresa Brasileira de Aeronautica (ERJ): 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