Aerospace and defense major General Dynamics (GD) has roped in Advanced Material Engineering Pte Ltd (“AME”), a subsidiary of Singapore Technologies Kinetics Ltd (ST Kinetics), to manufacture 40mm Air Burst Ammunition for the U.S. military. ST Kinetics will use its expertise to design and manufacture the new ammunition.
This 40 mm Air Burst Ammunition is different from the conventional ammunition used by the military. This ammunition will utilize a new technology providing an edge to the warfighter to efficiently deal with concealed targets.
This new ammunition will use a programmable, time-based fuse technology that computes and programs the detonation time into the fuze. Once fired, the fuze counts down to zero detonating at the intended target point. This will allow the warfighter to detonate at a specific distance, greatly increasing the effectiveness, flexibility and lethality of the weapon systems.
The 40mm airburst can be fired from existing U.S. Army grenade launchers such as the Mk19 and MK47. The development of new and advanced ammunitions will allow warfighters to deal with increasingly hostile and concealed threats.
General Dynamics has been a consistent performer despite the threat of U.S. defense budget cuts. The company registered earning surprises in the last four quarters with an average beat of 4.91%. We expect the diversified product offering of this company to ensure strong results in the upcoming quarters.
General Dynamics currently has a Zacks Rank #2 (Buy). Some other stocks in the defense space worth considering include Boeing Company (BA), Rockwell Collins Inc. (COL) and Engility Holdings, Inc. (EGL). All of them share the same rank as General Dynamics.
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
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment