General Dynamics Corporation’s (GD) unit, General Dynamics Ordnance and Tactical Systems, and leading firearm manufacturer Smith & Wesson Holding Corporation (SWHC) will form a partnership to compete for the solicitation of the U.S. Army’s Modular Handgun System (“MHS”) that will replace the M9 standard Army sidearm.
General Dynamics Ordnance and Tactical Systems is one of the leading manufacturers of mortar weapons and systems, bomb bodies and propellants. It is also engaged in the production of precision metal components and provides an array of services for tactical missile and rocket programs.
On the other hand, Smith & Wesson is a leading manufacturer of firearms. The company also engages in the design and delivery of a wide range of high-quality firearms.
The two partners have planned to develop a Modular Handgun System that is based on Smith & Wesson’s M&P Polymer Pistol platform. The M&P pistols are extensively used by the U.S. and other law enforcement bodies throughout the world and have been in production for the last 11 years.
The draft MHS solicitation of the Army cites the essential requirements for a new Modular Handgun System including its design and performance. Per the mandates of the Army, the new Modular Handgun System will be designed such that it fits all hand sizes with ease. Moreover, it will be optimized for enhanced gun, ammunition and magazine performance.
The Army is likely to start the competition in Jan 2015. Delivery of the first batch of the new Modular Handgun Systems is slated for 2017.
General Dynamics currently holds a Zacks Rank #2 (Buy). Other stocks worth considering in the same sector are Engility Holdings, Inc. (EGL) and The Boeing Co. (BA). While Engility Holdings carries a Zacks Rank #1 (Strong Buy), Boeing carries the same Zacks Rank as General Dynamics.
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