Credit: Shutterstock photoGeneral Dynamics CorporationGD has secured a contract from the U.S. Army for the production of additional Warfighter Information Network - Tactical (WIN-T) Increment 2 systems. The deal is valued at $219 million.
Per the contract, General Dynamics will produce more than 300 vehicle-based network communication nodes and related equipment. Production will take place at the company's facility in Taunton, MA.
WIN-T Increment 2 is the base of the U.S. Army's communications system as it is capable of providing risk-free Communications on the Move, mission command and conditional awareness to army personnel.
General Dynamics' revenues are derived from a broad portfolio of products and services that help to keep the overall growth momentum steady. Total backlog of the company stood at $70.5 billion at the end of first quarter, up 26.3% year over year. Funded backlog at the end of the quarter grew 16.1% year over year to $56 billion.
On account of rising security threats, focus of the defense budget funding has shifted toward upgrading existing capabilities and emphasizing on ISR, cyber security and space technology. This will definitely improve the segment's prospects to win contracts in the future while boosting the company's top line.
General Dynamics currently has a Zacks Rank #2 (Buy). A better-ranked stock in the aerospace sector is TransDigm Group Incorporated TDG , sporting a Zacks Rank #1 (Strong Buy). Equally well-placed stocks in the same space are Leidos Holdings, Inc. LDOS and Northrop Grumman Corporation NOC , carrying a Zacks Rank #2.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
