Aerojet Rocketdyne (AJRD) to Help Lockheed in LRMF Creation
Aerojet Rocketdyne AJRD announced that it is assisting Lockheed Martin LMT in developing an advanced propulsion solution for the Long Range Maneuverable Fires (LRMF) missile. Earlier this year, Lockheed was selected by the U.S. Army’s Aviation and Missile Center to develop LRMF missiles.
The significance of LRMF missiles lies in their capability to neutralize targets way beyond the present capacity of the Precision Strike Missile (PrSM) baseline. Aerojet Rocketdyne’s propulsion solution will play a key role in extending the missile range. Extension of the missile range will provide an edge to defense personnel in offensive operations.
The development of the LRMF missiles will take place in multiple phases. In the first phase of the program, Lockheed and its team will concentrate on the design and risk-reduction activities.
Missiles Play a Crucial Role in Modern Warfare
Missiles are tactical weapons that have virtually changed the concept of modern warfare. The countries that have advanced missiles and missile defense systems have an added advantage on the battlefield.
Aerospace and defense operators and governments across the globe are trying to develop more advanced missiles with the capacity to strike targets at ranges of several thousand miles.
More research and development work is going into increasing the reliability and accuracy of the missiles to hit targets precisely at long distances.
Expanding Global Missile Market
Per MarketsandMarkets research report, the global Rockets and Missile Markets is expected to expand from $58.3 billion in 2021 to $73.8 billion in 2026. The primary reason behind the expansion of the missile market is the consistent increase in defense budgets as nations become more focused on creating a strong missile system.
Other major defense operators involved in the development of missiles of different types and benefiting from the rising demand are Northrop Grumman Corporation NOC, Raytheon Technologies RTX and General Dynamics Corporation GD, each carrying a Zacks Rank #3 (Hold).
The long term (three- to five-year) earnings growth rate of Northrop Grumman, Raytheon Technologies and General Dynamics is pegged at 3.8%, 8.3% and 8.9%, respectively.
The stable performance of these companies is also reflected in their respective Zacks Consensus Estimate. For 2023, the Zacks Consensus Estimate for earnings of Northrop Grumman and Raytheon Technologies reflects an increase of 2.5% and 0.6%, respectively, in the past 60 days. For 2023, the Zacks Consensus Estimate for General Dynamics reflects a year-over-year increase of 3.9%.
Price Performance
Shares of Aerojet Rocketdyne have soared 40.2% in the past year compared with the industry’s growth of 11.3%.
Image Source: Zacks Investment Research
Zacks Rank
Aerojet Rocketdyne Holdings currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
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General Dynamics Corporation (GD) : Free Stock Analysis Report
Aerojet Rocketdyne Holdings, Inc. (AJRD) : Free Stock Analysis Report
Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report
