Lockheed Martin's Unit Wins $40M Deal For Long Range Radar 3

Lockheed Martin Corp.’s (NYSE:LMT) Rotary and Missions Systems (RMS) segment recently secured a $40-million contract for delivering a Long Range Radar 3 sensor system and technical refreshes to other integrated systems. The contract has been awarded by the Air Force Life Cycle Management Center, Hanscom Air Force Base, MA.

Per the deal terms, the RMS segment will also provide the necessary equipment, installation, test, spares, engineering services, hardware, software, program management and data services. Work related to the deal will be executed in Littleton, CO, and Syracuse, NY, and is scheduled to get completed by December 2022.

Benefits of Long Range Radar 3

Lockheed Martin’s Long Range Discrimination Radar (LRDR) program provides precision metric data to improve ballistic defense discrimination and replace existing sensors in the Ballistic Missile Defense System (BMDS). It is equipped to protect the U.S. homeland from ballistic missile attacks and increase the effectiveness of ground- based interceptors.

What Favors Lockheed Martin?

Lockheed Martin’s radar systems offer advanced precision targeting, navigation, threat detection, and next-generation intelligence, surveillance and reconnaissance (ISR) capabilities. The company’s radars and sensors have been significantly successful in the U.S. military's operational environment. Thanks to its varied advanced radar systems, the company’s RMS unit enjoys a steady flow of contracts from the Pentagon. The latest contract win is an example of the same.

Moreover, per Markets and Markets, the global military radar market is projected to see a CAGR of 3.38%, from $13.06 billion in 2017 to $15.42 billion by 2022, primarily led by the rising threat of nuclear ballistic missiles
and the changing nature of aerial warfare.

Notably, Lockheed Martin significantly invests in the development of advanced next-generation radars and sensors equipped to detect, track and identify threats quickly.

Price Performance

Lockheed Martin’s stock has gained 54.8% in the past year compared with the industry’s growth of 28.8%.

Zacks Rank & Key Picks

Lockheed Martin currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the same space are L3Harris Technology Inc (NYSE:LHX) , Air Industries Group (NYSE:AIRI) and Leidos Holdings, Inc. (NYSE:LDOS) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

L3Harris’ long-term growth estimates currently stand at 8%. The company delivered average positive earnings surprise of 5.02% in the last four quarters.

Air Industries Group delivered average positive earnings surprise of 52.78% in the last four quarters. The Zacks Consensus Estimate for 2019 loss has narrowed 63.6% to 4 cents over the past 60 days.

Leidos Holdings delivered average four-quarter earnings beat of 8.93%. It currently has a solid long-term earnings growth rate of 7.5%.

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