Advertisement
UK markets closed
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • CRUDE OIL

    83.11
    +1.76 (+2.16%)
     
  • GOLD FUTURES

    2,254.80
    +42.10 (+1.90%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • Bitcoin GBP

    55,955.30
    +1,288.91 (+2.36%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • NASDAQ Composite

    16,379.46
    -20.06 (-0.12%)
     
  • UK FTSE All Share

    4,338.05
    +12.12 (+0.28%)
     

Northrop Grumman (NOC) Wins $252M Deal to Support Triton UAS

Northrop Grumman Corp.’s NOC business unit, Northrop Grumman Systems Corp. recently secured a contract to provide ground stations, trade studies, tooling and associated support equipment in relation to production of MQ-4C Triton unmanned aircraft. The deal has been awarded by the Naval Air Systems Command, Patuxent River, MD.

Valued at $251.6 million, the contract is scheduled to be completed by February 2023. The majority of the work related to the deal will be carried out in San Diego and Palmdale, CA as well as Red Oak, TX.

Advantages of Triton UAS Air Vehicles

Northrop Grumman’s MQ-4C Triton UAS is equipped to provide real-time intelligence, surveillance and reconnaissance (ISR) over the vast ocean and coastal regions. The system is also equipped with a robust mission sensor suite that provides 360-degree coverage on all sensors, ensuring unprecedented maritime domain awareness for the U.S. Navy.

ADVERTISEMENT

Triton UAS supports a wide range of missions including maritime ISR patrol, signals intelligence, search and rescue and communications relay. This is because Triton incorporates a reinforced airframe for increased internal payload along with de-icing and lightning protection systems, which allow the aircraft to descend and ascend in harsh maritime weather to get a closer view of ships and other targets at sea.

Northrop Grumman’s Prospects

Cost-effectiveness of UAS compared to manned aircraft and zero mortality has been bolstering demand for military drones. This, in turn, has been driving demand for Triton, a next-generation UAS.

During the 2018-2025 period, the global unmanned aerial vehicle (UAV) market is anticipated to witness CAGR of 14.5% to reach $52.3 billion (per Markets and Markets research firm). Notably, rise in the procurement of military UAVs by defense forces worldwide is one of the most significant factors, which is expected to provide a boost to the UAV market.

To date, North America remains the largest market for UAV, buoyed by increasing use of UAVs for border and maritime surveillance activities, particularly in the United States and Canada.

With Northrop Grumman being a prominent defense major in the United States and an expert UAV manufacturer, the aforementioned projections for the UAV market should boost this defense prime’s growth substantially.

Price Performance

In a year’s time, shares of Northrop Grumman have rallied about 47.1% compared with the industry’s 29.1% rise.

Zacks Rank & Stocks to Consider   

Northrop Grumman has a Zacks Rank #3 (Hold). A few better-ranked stocks in the same space are Air Industries Group AIRI L3Harris Technology Inc LHX and Leidos Holdings, Inc. LDOS, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Air Industries delivered average four-quarter earnings beat of 52.78%. Its Zacks Consensus Estimate for earnings of 5 cents for 2020 improved by 12 cents in last 60 days.

L3Harris’ long-term growth estimate currently stands at 8%. The company delivered average positive earnings surprise of 5.02% in the last four quarters.

Leidos Holdings delivered average four-quarter earnings beat of 8.93%. It currently has a solid long-term earnings growth rate of 7.5%.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>



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
 
Air Industries Group (AIRI) : Free Stock Analysis Report
 
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
 
Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report
 
L3Harris Technologies Inc (LHX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.