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Raytheon (RTX) Wins $79-Million Deal to Support SDB Program
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Raytheon Technologies Corp. (RTX - Free Report) recently secured a contract to conduct integration and test on Small Diameter Bomb II (SDB II). The deal has been awarded by the Air Force Life Cycle Management Center, Eglin Air Force Base, FL.
Valued at $79.4 million, the contract is expected to get completed by Apr 1, 2023. Per the deal terms, Raytheon will deliver all-up round (AUR) test vehicles, perform AUR-level assembly, checkout, testing and systems integration testing. The company will also prepare for production cut-in and fielding for the multiple engineering changes needed.
Advantages of SDB II Weapon
Raytheon’s StormBreaker bomb, formerly known as the Small Diameter Bomb II (SDB II), provides war fighters with the ability to hit moving targets in all weather conditions, especially when the visibility is limited. The SDB-II is capable of three modes — a millimeter wave radar that detects and tracks targets through all weather, imaging infrared for improved target discrimination and a semi-active laser allowing it to track lasers in the air or on the ground.
Further, the weapon can fly more than 45 miles to strike mobile targets. Due to such unmatched battlefield advantages, the U.S. Air Force and Navy have begun StormBreaker bomb integration activities on Lockheed’s (LMT - Free Report) F-35 Joint Strike Fighter and Boeing’s (BA - Free Report) F/A-18E/F Super Hornet aircraft.
Our View
Increasing geo-political tensions across the globe have prompted nations to strengthen their defense systems manifold. With rapid technological upgrade, munitions like SDB also play a pivotal role for a nation’s defense strategy.
To this end, it is imperative to mention that Raytheon has been clinching significant awards from the United States and international customers, courtesy of high-end, combat-proven arsenals. The latest contract win is an evidence to that.
Such contract wins tend to boost the company’s backlog count and in turn reflect its revenue prospects.
Price Movement
Raytheon’s stock has gained 19.8% in the past 12 months compared with the industry’s surge of 36.1%.
AAR Corp. currently boasts a four-quarter average earnings surprise of 129.1%. The Zacks consensus estimate for the company’s fiscal 2021 earnings has moved up 14% over the past 60 days.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Raytheon (RTX) Wins $79-Million Deal to Support SDB Program
Raytheon Technologies Corp. (RTX - Free Report) recently secured a contract to conduct integration and test on Small Diameter Bomb II (SDB II). The deal has been awarded by the Air Force Life Cycle Management Center, Eglin Air Force Base, FL.
Valued at $79.4 million, the contract is expected to get completed by Apr 1, 2023. Per the deal terms, Raytheon will deliver all-up round (AUR) test vehicles, perform AUR-level assembly, checkout, testing and systems integration testing. The company will also prepare for production cut-in and fielding for the multiple engineering changes needed.
Advantages of SDB II Weapon
Raytheon’s StormBreaker bomb, formerly known as the Small Diameter Bomb II (SDB II), provides war fighters with the ability to hit moving targets in all weather conditions, especially when the visibility is limited. The SDB-II is capable of three modes — a millimeter wave radar that detects and tracks targets through all weather, imaging infrared for improved target discrimination and a semi-active laser allowing it to track lasers in the air or on the ground.
Further, the weapon can fly more than 45 miles to strike mobile targets.
Due to such unmatched battlefield advantages, the U.S. Air Force and Navy have begun StormBreaker bomb integration activities on Lockheed’s (LMT - Free Report) F-35 Joint Strike Fighter and Boeing’s (BA - Free Report) F/A-18E/F Super Hornet aircraft.
Our View
Increasing geo-political tensions across the globe have prompted nations to strengthen their defense systems manifold. With rapid technological upgrade, munitions like SDB also play a pivotal role for a nation’s defense strategy.
To this end, it is imperative to mention that Raytheon has been clinching significant awards from the United States and international customers, courtesy of high-end, combat-proven arsenals. The latest contract win is an evidence to that.
Such contract wins tend to boost the company’s backlog count and in turn reflect its revenue prospects.
Price Movement
Raytheon’s stock has gained 19.8% in the past 12 months compared with the industry’s surge of 36.1%.
Zacks Rank & Another Key Pick
Raytheon currently holds a Zacks Rank #2 (Buy). Another top-ranked stock in the same space is AAR Corp. (AIR - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AAR Corp. currently boasts a four-quarter average earnings surprise of 129.1%. The Zacks consensus estimate for the company’s fiscal 2021 earnings has moved up 14% over the past 60 days.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>