Time New York: Sun 27 May 04:02 am  |  Save 15% on H&R Block Online


Lockheed Martin (LMT) Wins $100M Support Contract for JASSM


Lockheed Martin Corp. LMT has won a contract from the U.S. Air Force to support the production of Joint Air-to-Surface Standoff Missile (JASSM).

Contract Details

The contract is valued at $100 million and was awarded by the Air Force Life Cycle Management Center, Eglin Air Force Base, FL.

Per the contract, Lockheed Martin will provide lifecycle support for work related to JASSM, Long Range Anti-Ship Missile (Air Force Inventory), JASSM-Extended Range and any JASSM variant to support system upgrades, integration, production, sustainment, management and logistics.

The work is scheduled to be completed by Apr 17, 2022 and will be executed in Orlando, FL.

JASSM Attributes

JASSM is a stealthy, precision-guided cruise missile with a penetrating blast-fragmentation warhead. These missiles have been designed with infrared seekers and enhanced digital anti-jam Global Positioning System. They are integrated on the B-1, B-2, B-52, F-16 and F-15E jets of the Air Force. They are also carried on the F/A-18A/B and F-18C/D aircraft worldwide. Lockheed has been manufacturing the JASSM cruise missiles in a Troy, AL-based plant since the late 1990s.

JASSM Extended Range – a newer version of JASSM – can also be installed in the F-16 aircraft since they are identical in size and capability. However, JASSM-ER is more fuel efficient and is powered by a turbo-fan engine instead of a turbo-jet engine. It can travel over twice the distance of that of JASSM.

Our View

Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders from a leveraged presence in the Army, Air Force, Navy and IT programs. Recently, the company’s Aeronautics Co. business division has won a modification contract from the U.S. Navy. The original advance acquisition contract involved low-rate initial production of Lot 10 F-35 Lightning II and is valued at $372.9 million.

Again, it signed a deal worth $288 million to acquire Instrumentable Multiple Integrated Laser Engagement System (I-MILES) Combat Vehicle Tactical Engagement Simulation System (CV TESS).

Price Movement

Lockheed Martin’s stock has improved about 18.6% in the last one year, underperforming the Zacks categorized Aerospace/Defense industry’s gain of 23.2%. This could be because the earlier budget cuts have put pressure on the top line although the present defense budget is more in favor of the sector. We believe that budget deficits and political uncertainty might make future defense budgets vulnerable to cutbacks. . As a result, Lockheed Martin’s performance lagged behind the likes of General Dynamics Corp. GD, Boeing Co. BA and Huntington Ingalls Industries, Inc. HII, who have all outperformed the industry.

Zacks Rank

Lockheed Martin currently has a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

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.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.