Orbital ATK (OA) Receives Order For Small-Caliber Ammunition

Orbital ATK (NYSE:OA) announced that it has received order from the U.S. Army to supply small-caliber ammunition worth more than $115 million. The ammunitions will be manufactured at Lake City Army Ammunition Plant in Independence, MO, owned by the government and operated by Orbital ATK.

Leader in Small-Caliber Ammunition

Orbital ATK is the largest supplier of small-caliber ammunition for the U.S. Defense Department and is among the leading producer of high-quality ammunition in the world. It has invested more than $100 million in Lake City Plant for development. The company has produced more than 18 billion rounds of small-caliber ammunition in the last 18 years.

Orbital ATK has expertise in supplying high-quality ammunition to the U.S. Army and its allied forces. The new contract is a continuation of the existing mutual trust. Per the terms of the contract, Orbital ATK will supply 5.56mm, 7.62mm and .50 caliber ammunition.

Rising Ammunition Demand

Rising security concern across the globe due to increasing threats from terrorism is a concern for many governments. Upward revisions in the defense budget along with constant orders from the United States and allied nations have bolstered prospects for U.S. defense majors.

Usage of innovative technologies to produce advanced products, per the need of the customers, ensures continuous flow of orders.

In January 2018, Orbital ATK also received an order from Intelsat for Galaxy 30 Satellite. Orbital ATK will be acquired by Northrop Grumman Corporation (NYSE:NOC) , which will expand its presence in satellite space. Other prominent operators in the global satellite market are Lockheed Martin Corporation (NYSE:LMT) and The Boeing Company (NYSE:BA) .

Lockheed Martin holds a Zacks Rank #3 (Hold) while The Boeing Company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Zacks Rank & Price Performance

Orbital ATK has a Zacks Rank #3.

Shares of Orbital ATK have returned 40.8% in the last 12 months, outperforming the Zacks Aerospace and Defense Equipment industry’s rally of 38.6%.

The impressive performance of the company can be attributed to its diverse product offering.

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