U.S. markets close in 2 hours 57 minutes
  • S&P 500

    3,827.37
    -98.06 (-2.50%)
     
  • Dow 30

    31,385.45
    -576.41 (-1.80%)
     
  • Nasdaq

    13,128.64
    -469.32 (-3.45%)
     
  • Russell 2000

    2,223.49
    -60.89 (-2.67%)
     
  • Crude Oil

    63.59
    +0.37 (+0.59%)
     
  • Gold

    1,773.60
    -24.30 (-1.35%)
     
  • Silver

    27.66
    -0.27 (-0.98%)
     
  • EUR/USD

    1.2207
    +0.0039 (+0.32%)
     
  • 10-Yr Bond

    1.4870
    +0.0980 (+7.06%)
     
  • GBP/USD

    1.4056
    -0.0085 (-0.60%)
     
  • USD/JPY

    106.3200
    +0.4380 (+0.41%)
     
  • BTC-USD

    49,565.17
    +85.80 (+0.17%)
     
  • CMC Crypto 200

    991.27
    -3.39 (-0.34%)
     
  • FTSE 100

    6,651.96
    -7.01 (-0.11%)
     
  • Nikkei 225

    30,168.27
    +496.57 (+1.67%)
     

General Dynamics Secures $49M Contract to Build GMV 1.1

  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

General Dynamics Corporation’s GD Ordinance and Tactical Systems business unit recently secured a $48.9 million modification deal for the production of Ground Mobility Vehicle (GMV) 1.1. The contract was awarded by the U.S. Special Operations Command, Tampa, FL.

Work related to the contract will be executed in Anniston, ALand is expected to get completed by August 2020.

Demand Drives GMV 1.1

With widespread geo-political tension around the globe, many nations are strengthening their arsenals and taking initiatives to upgrade land-combat military vehicles. To this end, it is imperative to mention that GMV 1.1 is an all-terrain vehicle developed especially for use by special operations forces (SOF). It is air-transportable in Boeing’s BA CH-47/MH-47 heavy lift helicopters.

Notably, initial production run of the GMV 1.1 is 1,297 vehicles. These vehicles will be replacing many of the Ground Mobility Vehicles currently in use with United States SOF units. This indicates the huge demand that GMV 1.1 enjoys in the United States.

General Dynamics’ Role

Apart from being one of the world’s two nuclear-powered shipbuilders, General Dynamics boasts proven expertise in offering varies combat proven armored vehicles.  Notably, the company enjoys a market-leading position in light armored vehicles (LAVs) with more than 13,000 vehicles in service around the world.

Currently, it is upgrading the Canadian Army’s fleet of LAVs to increase mobility, survivability and lethality, as well as enhance the vehicle’s surveillance suite. In this regard, General Dynamics won a contract worth $1.3 billion in 2019 from Canada for 360 combat support LAVs in eight variants.

The company also has expertise in medium-weight combat vehicles and is currently producing the British Army’s AJAX armored fighting vehicle, a next-generation, medium-weight tracked combat vehicle. This vehicle is expected to be in steady-state production through 2024.

No doubt, the aforementioned discussion indicates the pivotal role that General Dynamics plays in the armored vehicle spacein both its domestic as well as international markets.

Prospects

Dramatic rise in cross-border conflicts and increasing incidences of asymmetric warfare across the globe have boosted the growth prospects of the armored vehicle market. Per Markets and Markets research firm, the global armored vehicles market size is projected to grow from $11.6 billion in 2020 to $15.4 billion by 2025, at a CAGR of 5.8% during the forecast period.

Such growth prospects are expected to benefit defense players like General Dynamics, Textron TXT and BAE Systems plc BAESY, which have proven their expertise in offering state-of-the-art combat vehicles.

Price Movement   

General Dynamics’s stock has lost 18.5% in the past year compared with its industry’s decline of 27.2%.

Zacks Rank

General Dynamics currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>


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
 
The Boeing Company (BA) : Free Stock Analysis Report
 
General Dynamics Corporation (GD) : Free Stock Analysis Report
 
Bae Systems PLC (BAESY) : Free Stock Analysis Report
 
Textron Inc. (TXT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.