Northrop Grumman NOC recently secured a $100 million contract to provide active-seeker–related support. This includes work on components, testing and evaluation services and science and technology development. The award has been provided by the Air Force Life Cycle Management Center, Eglin Air Force Base, FL.
The work related to this deal will be carried out in Baltimore, MD, and is projected to be completed by Dec. 31, 2034.
Significance of Northrop Grumman’s SiAW
Northrop Grumman’s Stand-in Attack Weapon (SiAW) is built to help the Air Force strike fast-moving and hard-to-reach targets inside heavily defended areas. Its open-architecture design allows the missile to be upgraded quickly, helping it stay effective as threats change.
These features strengthen Northrop Grumman’s role in developing modern strike systems. The ongoing work on SiAW reflects the company’s broader capabilities in missiles, armaments and advanced electronics aimed at helping the US deter and defeat emerging threats.
Growth Prospects for NOC
According to a report from the Mordor Intelligence firm, rising military conflicts, terrorism and border disputes have led nations to increase their focus on national security, particularly on missile defense systems in recent times, backed by the rapid development of advanced missile technologies over the last decade. Mordor Intelligence also forecasts that the global missiles and missile defense systems market will witness a compound annual growth rate of 4.97% during the 2025-2030 period.
Such strong growth projections indicate solid opportunities for Northrop Grumman, which develops and builds advanced missile defense technology, ranging from command systems to directed energy weapons, advanced munitions and powerful sensors. Notably, NOC’s IBCS serves as the centerpiece of the U.S. Army's air and missile defense modernization strategy and thus enjoys a solid demand in the missile and missile defense systems market. The recent contract is an example of that.
Opportunities for Other Defense Stocks
Other defense companies that are likely to enjoy the perks of the expanding missiles and missile system market have been discussed below.
RTX Corporation RTX: It is known for its missile defense systems like the Patriot and SM-6, which are in high demand globally. RTX also provides advanced sensors and interceptors to identify, track and defeat threats as part of a layered missile defense.
The company’s long-term (three to five years) earnings growth rate is 10.3%. The Zacks Consensus Estimate for RTX’s 2025 sales indicates year-over-year growth of 7.8%.
The Boeing Company BA: It manufactures various missile defense systems, including the Ground-based Midcourse Defense, Aegis Ballistic Missile Defense and Avenger. Boeing-built air and missile defense systems have been protecting its customers for nearly 25 years against threats ranging from intercontinental ballistic missiles to hostile aircraft.
The company has a long-term earnings growth rate of 31.3%. The Zacks Consensus Estimate for BA’s 2025 sales indicates year-over-year growth of 30.5%.
Lockheed Martin Corporation LMT: Lockheed Martin’s renowned missile program includes the Patriot Advanced Capability-3 and Terminal High-Altitude Area Defense air and missile defense programs. It also manufactures the Multiple Launch Rocket System, the Joint Air-to-Surface Standoff Missile and Javelin tactical missile programs alongside other tactical missiles.
The company has a long-term earnings growth rate of 12.4%. The Zacks Consensus Estimate for LMT’s 2025 sales indicates year-over-year growth of 4.7%.
NOC Stock’s Price Movement
Shares of NOC have gained 19.8% in the past six months compared with the industry’s 7.4% growth.
NOC’s Zacks Rank
NOC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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