General Dynamics' (GD) Unit Gets $15M Air Force Contract

General Dynamics Corporation (NYSE:GD) announced that its unit, General Dynamics Mission Systems, received a $15 million contract from The Air Force Research Laboratory (AFRL). Per the contract General Dynamics’ unit will be entrusted the duty to prepare and demonstrate a software prototype that correlates geospatial intelligence, signals intelligence and cyber indicator and warning data streams for intelligence analysts.

Importance of the Deal

The timeliness of data and correct interpretation of the same gives an upper hand to the defense personnel and enables them to stay ahead in the ongoing fight against terrorism. Per the deal General Dynamics will develop a cloud-based threat detection and analysis platform using a modular architecture to automate threat assessments.

This prototype module will help reduce delays in data access and extraction, thereby shortening the time between threat identification and response.

Why General Dynamics?

General Dynamics, with its more than five decades experience in data aggregation, threat assessment and analytic technique, is an excellent choice to develop the software prototype.

General Dynamics Mission Systems' prior investment in relevant research and development will allow the team to deliver the initial prototype platform in an abbreviated timeframe. General Dynamics is committed to R&D activities that facilitate the introduction of new products.

Diverse Portfolio

General Dynamics’ diverse product portfolio along with its spread out customer base provides it with an opportunity to generate revenues from different sources. The U.S. defense order continues to be the largest contributor accounting for 57% of its total revenues in 2015. However, the diverse sources of revenues will help the company to counter the volatility in domestic defense spending.

Zacks Rank & Key Picks

General Dynamics carries a Zacks Rank #2 (Buy). Other well-placed stocks in the aerospace & defense industry are Engility Holdings, Inc. (NYSE:EGL) , Leidos Holdings, Inc. (NYSE:LDOS) and Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) . Engility Holdings sports a Zacks Rank #1 (Strong Buy), while each of Leidos Holdings and Kratos Defense & Security Solutions carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.

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