Lockheed Martin Stock Just Received a $262 Million Catalyst (NYSE: LMT)

Lockheed Martin stock just received a huge catalyst this morning after the company announced a $262.8 million contract with the U.S. Air Force.

Through the contract, Lockheed Martin Corp. (NYSE: LMT) will service Saudi Arabia's F-15 sniper targeting systems and radars. Those systems allow for day and night low-level navigation.

The agreement, announced Monday, is the first major deal of the biennial Dubai Airshow. Launched in 1986, the show booked a record $200 billion in orders in 2013. The spectacle runs through Thursday.

Under the contract, Lockheed Martin will collaborate with Advanced Electronics Company (AEC) to perform sniper sustainment services and upgrades at the Sniper Expanded Repair Capability facility in Saudi Arabia. AEC is a Saudi-based company focused on electronics manufacturing, system integration, and repair and maintenance services

lockheed martin stockThe U.S. Air Force, Lockheed Martin, and AEC will collaborate to complete training and specific sustainment efforts, including maintenance on line replaceable units, logistics, and upgrades.

The deal comes as Saudi Arabia and the United Arab Emirates have been leading the war in Yemen against the country's Shiite Houthi rebels since March. The two are also part of the U.S.-led coalition bombing the Islamic State group in Syria and Iraq.

The multimillion dollar contract is a huge win for Lockheed, and it's just one reason to be bullish on Lockheed Martin stock...

Why Lockheed Martin Stock Is a Buy (NYSE: LMT)

In late September, the global aerospace titan rolled out its first highly anticipated F-35A Lightning II for the Norwegian Armed Forces.

The F-35A Lighting II is an innovative fifth-generation fighter jet. Lockheed Martin describes it as "combining advanced stealth with fighter speed and agility."

The three variants of the F-35 will replace legacy fighters for the U.S. Air Force, U.S. Navy, and U.S. Marines. It will also be used in at least 10 other countries.

In short, the F-35 is the largest military contract in history, with Lockheed as the principal contractor...

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It is part of the $1.4 trillion, 56-year F-35 Joint Strike Fighter project. Others involved include Northrup Grumman Corp. (NYSE: NOC) and BAE Systems Plc. (OTCMKTS ADR: BAESY).

Lockheed Martin stock will benefit as more F-35s are delivered across the world.

In addition to the F-35, Lockheed Martin's other strengths include cybersecurity, logistics, and tactical compunctions.

It's a leader in biometrics, helping travelers with vetted backgrounds move through expedited security lines at airports. Lockheed Martin also has a strong foothold in nanotechnology, which may hold the key to addressing some of the most pressing issues of sustainability, energy management, healthcare, and security.

Lockheed is also adept at dealing with military spending cuts...

"These guys have learned from our history - at the end of every shooting war, defense budgets come under sharp attack in a politically tough environment," Money Morning Defense & Tech Specialist Michael A. Robinson said. "Lockheed Martin's reach also includes space exploration, satellite systems, and climate monitoring. Not only that, but it's a whiz at biometric and cyber security, as well as the booming field of cloud computing."

At $214.85, LMT shares are up 11.6% so far this year. In comparison, the Dow is down 0.7% year to date and the S&P 500 climbed just 0.7%. LMT's year-to-date gain also easily tops the Nasdaq's 7.22% advance.

Lockheed Martin is also committed to rewarding shareholders. It's boosted its dividend for the last 12 straight years. Shares yield an appealing 3.07%.

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