Raytheon Signs Deal To Support Ship Self-Defense System

Raytheon Company (NYSE:RTN) announced that its unit, Integrated Defense Systems, has received a $47.1 million contract from The Naval Sea Systems Command, Washington, D.C. to support the Ship Self-Defense System. Work will be performed in San Diego, CA and is expected to be complete by Dec 2017. The contract will use fiscal 2017 operations and maintenance (Navy) funds.

Need of Ship Self-Defense System

The Ship Self-Defense System is a combat system designed to protect ships from external threats and help in the coordination of a number of shipboard systems.

This system aids the detection, tracking and assessment of anti-ship cruise missiles, and offer weapon engagement decisions to combat air threats. Its defense systems facilitate rapid decision making from the time of detection to weapon engagement.

Why Raytheon?

Raytheon is an expert in the Ship Self-Defense System and its defense systems have been used widely in Navy ships for more than a decade now.

Thanks to its proven technology and expertise in this field, Raytheon has been receiving Ship Self-Defense System contracts from the Navy on a regular basis since the delivery of the first of its open architecture Ship Self-Defense System on Jul 14, 2008.

Price Movement

Raytheon’s stock has improved about 21.5% in the last one year, outperforming the Zacks Categorized Aerospace/Defense industry’s gain of 16.5% over the same time frame. Thanks to its wide range of defense products, the company continues to receive orders.

Raytheon has been a consistent performer over the years, which is driving its share price. The company surpassed the Zacks Consensus Estimate in the four trailing quarters, with an average positive surprise of 6.27%. The long-term earnings growth of the company is pegged at 7.22%.

Zacks Rank & Key Picks

Raytheon currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the aerospace and defense space include Engility Holdings, Inc. (NYSE:EGL) , Northrop Grumman Corporation (NYSE:NOC) and Lockheed Martin Corporation (NYSE:LMT) .

On an average, Engility delivered a positive earnings surprise of 23.19% in the trailing four quarters. The company’s 2016 estimate has increased 13.4% over the last 60 days. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Northrop sports a Zacks Rank #1 as well. The company’s 2016 estimate has increased by 6% over the last 60 days. On an average, the company delivered a positive earnings surprise of 8.3% in the trailing four quarters.

Lockheed Martin currently carries a Zacks Rank #2 (Buy). The company’s 2016 estimate has increased by 3.8% over the last 60 days. On an average, the company delivered a positive earnings surprise of 11.4% in the trailing four quarters.

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