Lockheed Martin Corporation (LMT) Is Set to Soar

U.S. company awarded huge contract

Northrop Grumman Corporation (NYSE:NOC) also stands to benefit once the Pentagon order is finalized. Northrop designs the electro-optical system (EOTS) responsible for targeting of enemy targets. The EOTS is basically a very advanced long range, thermal, 360° coverage and video camera that allows the pilot to hit targets accurately.

Luxury company aerospace division & GE collaboration

Aerospace and defense division of Rolls Royce has the contract with Lockheed Martin Corporation (NYSE:LMT) to manufacture the turbofan for the F-35. General Electric Company (NYSE:GE) is working with Rolls Royce on this project. The GE aviation arm includes avionic systems, electrical power systems, mechanical systems, and unison. GE Aviation is the direct supplier to Lockheed Martin for the turbofan. Once initial funding goes through, this business relationship will benefit both companies exponentially.

The immense scale and expense of aerospace design and manufacturing makes it necessary to outsource. Good news for General Electric Company (NYSE:GE) shareholders when the Pentagon finalizes negotiations with Lockheed Martin Corporation (NYSE:LMT) this summer.

The takeaway

Current and future orders for a multi-functional combat aircraft will only increase. The growing conflict over natural resources like oil in the Middle East and other hotspots around the world reinforces the need for U.S. and NATO air superiority. Lockheed Martin Corporation (NYSE:LMT) and Northrop Grumman Corporation (NYSE:NOC) have market caps over $17 billion per company and have solid relationships with the Pentagon and Congress. As such, they should be on investors’ radar.

The article This Company Is Set to Soar originally appeared on Fool.com and is written by Robert Palmer.

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