Leading defense company Lockheed Martin Corporation LMT has been selected as the contractor to supply Hellfire missiles and Captive Air Training missiles to Iraq for an aggregate value of $800 million. This sale, approved by the U.S State Department, consists of 5000 Hellfire missiles and 10 Captive Air Training missiles.
This announcement comes as the U.S. steps up its support to its coalition partners as they fight the Islamic State (IS). The U.S. Defense and Security Cooperation Agency believes that this advanced weapon sale will help Iraq’s armed forces in its fight against the terror group. Lockheed has been ramping up production of these missiles to meet rising demand from war-struck areas.
Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders from the Army, Air Force, Navy and IT programs
A world fraught with geopolitical tensions has led to various nations ramping up their defense capabilities. Increasing threats and a growing need to safeguard the interests of nations and their people have pushed up demand for U.S. weapons. This has in turn been benefiting U.S. defense manufacturers.
Countries allied with U.S. policy are spending substantially on sophisticated weapons to wage war against the IS. Additionally, tensions in Korea and East and South China Sea are pushing up demand of U.S. manufactured artillery.
Lockheed Martin continues to witness robust demand in the international market for its products. In particular, the Asia Pacific and the Middle Eastern countries make up the company’s biggest market for Missile Defense. The company generated 20% of its total revenue from international customers in 2014. The company’s international mix is expected to grow further and become 25% of total revenue in the upcoming years.
Zacks Rank
Lockheed Martin currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the aerospace and defense sector include Leidos Holdings, Inc. LDOS, Textron Inc. TXT and Huntington Ingalls Industries, Inc. HII. While Leidos Holdings sports a Zacks Rank #1 (Strong Buy), both Textron and Huntington Ingalls hold a Zacks Rank #2 (Buy).
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