Lockheed Martin awarded $2.97B Missile Defense Agency contract
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Business Insider
14 hours ago
- Business Insider
LMT, NOC, GD: Top Defense Stocks to Watch This Independence Day
On the dawn of American Independence Day, it is only fitting that investors consider researching the potential of the defense sector. Companies in this industry often attract attention due to their alignment with national security priorities and ongoing government spending. The defense sector has gained paramount importance in recent years, especially in light of the prolonged conflicts between nations. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. During the recent NATO summit, members agreed to a new target of spending 5% of GDP on defense within the next decade, up from the previous 2% guideline. This increased budget is expected to benefit defense stocks, making them even more attractive to investors. It is evident that the U.S. plays a crucial role in today's war-torn world, and its defense companies garner significant attention for their advanced technology and strong performance. With this backdrop in mind, let's look at three American defense companies that have been major contributors to the U.S. defense sector and continue to demonstrate considerable strength. Lockheed Martin (LMT) Lockheed Martin is indeed one of the largest defense contractors globally. It serves as a major supplier to government agencies, including NASA. The company manufactures a wide array of products, such as missiles, targeting systems, military helicopters, and mission systems for various vehicles. The company's massive, long-term government contracts ensure a source of consistent and recurring revenue. For reference, LMT was recently awarded a $2.97 billion missile defense system contract over a 10-year indefinite-delivery/indefinite-quantity period. LMT also trades at a discount to the sector average, with its current P/E (price-earnings per share) ratio at 21.70x. Moreover, LMT offers an attractive dividend yield of 2.83%, paying a regular quarterly dividend of $3.3 per share. On TipRanks, the average Lockheed Martin price target of $527.15 implies a nearly 14% upside potential over the next 12 months. Also, seven analysts have given LMT stock a Buy rating, while six have rated it a Hold. Year-to-date, LMT stock has lost 3.5%. Northrop Grumman (NOC) Northrop Grumman is another promising aerospace and defense company, although it is smaller than Lockheed Martin. However, NOC has a different set of expertise, including autonomous systems, cybersecurity, strike platforms, logistics solutions, and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance). NOC is also one of NASA's key suppliers, specializing in satellite technologies and space systems. NOC currently trades at a relatively low P/E ratio of 16.53x, making it an attractive stock. Additionally, it offers an above-industry-average dividend yield of 1.83%, and pays a regular dividend of $2.31 per share. On TipRanks, the average Northrop Grumman price target of $541.36 implies 7.4% upside potential from current levels. 10 analysts have awarded NOC stock a Buy rating, while five have rated it a Hold. Year-to-date, NOC stock has gained 8.4%. General Dynamics (GD) General Dynamics also operates in the defense and aerospace sector, specializing in Gulfstream business jets, aircraft repair and maintenance, nuclear-powered submarines, commercial tankers and ships, main battle tanks, IT solutions, and intelligence and surveillance systems. On July 2, General Dynamics Electric Boat was awarded a $1.85 billion contract modification to a previously awarded contract supporting submarine production. Moreover, it received a $150 million Army contract, and the GD Information Technology segment was awarded a $580 million contract to sustain force protection systems such as radars, cameras, and sensors worldwide. Additionally, GD pays a regular quarterly dividend of $1.5 per share, carrying an attractive dividend yield of 2.04%. Its P/E ratio stands at 19.33x. On TipRanks, the average General Dynamics price target of $296.38 implies that shares are almost fully valued at current levels. Meanwhile, GD stock has gained 13.1% year-to-date. Also, six analysts each have given GD stock Buy and Hold ratings. Which Is the Best Defense Stock? Among the three stocks discussed above, Lockheed Martin appears to be the most favorably positioned, thanks to its well-diversified revenue stream, long-term government partnerships, healthy dividend yield, and reasonable valuation.
Yahoo
21 hours ago
- Yahoo
Ericsson, LMT Partner for Cloud-Native Core Network Transformation
Ericsson ERIC was selected by Latvia's largest communication service provider, Latvijas Mobilais Telefons ('LMT'), to modernize its core network infrastructure and build the foundation for the nationwide deployment of 5G Standalone (5G SA) services. By upgrading to Ericsson's cloud-native solutions, LMT is embracing a future-ready architecture that will allow greater agility, scalability and innovation in delivering advanced digital two companies share a longstanding partnership, working together on several innovative initiatives, including mission-critical communications and network development projects. It marks the initial deployment of Ericsson's Unified Data Management ('UDM') solution within the broader Telia Group, of which LMT is part, highlighting ERIC's growing role as a core network modernization leader in Northern Europe. For telecom providers like LMT, upgrading backend systems to support 5G SA capabilities is essential to ensure a seamless rollout and integration of next-generation services. ERIC's latest deal with LMT focuses on a comprehensive overhaul of LMT's subscriber domain infrastructure. This includes transitioning to a cloud-based, service-oriented architecture, which is more agile and future-proof than legacy systems. Over the next year, Ericsson will upgrade LMT's core network to ensure it can support cloud-native and virtualized network functions.A key aspect of this transformation is the deployment of Ericsson's Network Functions Virtualization Infrastructure. This solution enables LMT to run both virtualized and cloud-native network functions, giving the operator the flexibility to scale operations and integrate services with greater speed and efficiency. LMT will also migrate its Physical Network Function IP Multimedia Subsystem (IMS) to ERIC's Cloud IMS platform. This move enables LMT to offer advanced IP-based voice and multimedia services with improved flexibility and reduced operational agreement includes the replacement of LMT's legacy Home Location Register (HLR) and Home Subscriber Server (HSS) with Ericsson's UDM Latvia's digital economy expands, the modernization of LMT's core network with Ericsson's cloud-native solutions is pivotal. LMT's move to a cloud-native core with Ericsson puts it ahead in digital growth. This upgrade means future networks will be faster, smarter and better suited to people's changing needs. Ericsson is positioned to grow by capitalizing on strong 5G demand with its competitive products. It aims to lead in mobile networks and develop a robust enterprise business. Acquiring Vonage, Cradlepoint and Ericom helps expand into wireless, 5G and security. Heavy R&D investment keeps the company ahead in 5G, while its patents generate steady income. By focusing on innovation, automation and smart deals, it is driving growth and securing its place in the wireless ERIC unveiled Ericsson On-Demand, an innovative solution that provides 5G core network services through a true SaaS model. Developed in collaboration with Google Cloud, this platform leverages Google Kubernetes Engine and Google's AI infrastructure to give communications service providers (CSPs) a fully managed, cloud-native solution. Ericsson On-Demand allows CSPs to quickly deploy and scale their core networks, cut operational costs, and gain the agility needed in today's fast-changing telecom Ericsson's business is under pressure from various geopolitical and economic challenges. Its small market share has led to falling revenues in China, partly due to Sweden's ban on Chinese 5G vendors, which could hurt ties in the region. Supply-chain issues are adding to the woes. The company faces tough competition from Huawei and Nokia, along with lower spending by telecom operators in the Middle East, Africa and India, resulting in further revenue declines. Ericsson, carrying a Zacks Rank #2 (Buy) at present, has gained 37.3% over the past year compared with the Zacks Wireless Equipment industry's growth of 33.3%. Image Source: Zacks Investment Research Some other top-ranked stocks from the broader technology space are NETGEAR, Inc. NTGR, TaskUs, Inc. TASK and Cognizant Technology Solutions Corporation CTSH. NTGR currently sports a Zacks Rank #1 (Strong Buy), and TASK and CTSH carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 179.12%. In the last reported quarter, NTGR delivered an earnings surprise of 105.71%. Its shares have gained 101.7% in the past earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, matched in one and missed in the other, the average surprise being 6.39%. In the last reported quarter, TASK delivered an earnings surprise of 18.75%. Its shares have risen 21.6% in the past earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 6.38%. In the last reported quarter, CTSH delivered an earnings surprise of 3.36%. Its shares have grown 19.1% in the past year. Want 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 Ericsson (ERIC) : Free Stock Analysis Report Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report NETGEAR, Inc. (NTGR) : Free Stock Analysis Report TaskUs, Inc. (TASK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Bloomberg
2 days ago
- Bloomberg
Boeing's New CFO Barred From Defense, Lockheed Matters for Now
Boeing Co. 's new chief financial officer, Jesus 'Jay' Malave, won't be allowed to join in discussions initially that involve the company's second-largest business, one of several unusual clauses in his hiring agreement addressing potential conflicts of interest with a former employer. Malave, who's joining Boeing next month, held the same role at Lockheed Martin Corp. before stepping down abruptly in April, days before a quarterly earnings call. In a filing on Thursday, Boeing said it is paying its defense rival $2 million 'in connection with a release of claims relating to Mr. Malave's employment with the company.'
