Orbital ATK (OA) Receives Order for Small-Caliber Ammunition

Orbital ATK OA announced that it has received order from the U.S. Army to supply small-caliber ammunition worth more than $115 million. The ammunitions will be manufactured at Lake City Army Ammunition Plant in Independence, MO, owned by the government and operated by Orbital ATK.

Leader in Small-Caliber Ammunition

Orbital ATK is the largest supplier of small-caliber ammunition for the U.S. Defense Department and is among the leading producer of high-quality ammunition in the world. It has invested more than $100 million in Lake City Plant for development. The company has produced more than 18 billion rounds of small-caliber ammunition in the last 18 years.

Orbital ATK has expertise in supplying high-quality ammunition to the U.S. Army and its allied forces. The new contract is a continuation of the existing mutual trust.  Per the terms of the contract, Orbital ATK will supply 5.56mm, 7.62mm and .50 caliber ammunition.

Rising Ammunition Demand

Rising security concern across the globe due to increasing threats from terrorism is a concern for many governments. Upward revisions in the defense budget along with constant orders from the United States and allied nations have bolstered prospects for U.S. defense majors.

Usage of innovative technologies to produce advanced products, per the need of the customers, ensures continuous flow of orders.

In January 2018, Orbital ATK also received an order from Intelsat for Galaxy 30 Satellite. Orbital ATK will be acquired by Northrop Grumman Corporation NOC, which will expand its presence in satellite space. Other prominent operators in the global satellite market are Lockheed Martin Corporation LMT and The Boeing Company BA.

Lockheed Martin holds a Zacks Rank #3 (Hold) while The Boeing Company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Zacks Rank & Price Performance

Orbital ATK has a Zacks Rank #3.

Shares of Orbital ATK have returned 40.8% in the last 12 months, outperforming the Zacks Aerospace and Defense Equipment industry’s rally of 38.6%.

 

The impressive performance of the company can be attributed to its diverse product offering.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>
 

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
 
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
 
The Boeing Company (BA) : Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
Orbital ATK, Inc. (OA) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research