Raytheon Company (RTN), The Boeing Company (BA), Oshkosh Corporation (OSK) – Pentagon Week: Hunting Subs, Building Trucks, and Arming Iraqis

The SM-3IB is a next-generation improvement on Raytheon Company (NYSE:RTN)’s Standard surface-to-air missile, giving the missile enhanced, two-color infrared target seeking capability, plus the ability to use short bursts of precision propulsion to steer the missile toward incoming targets.

Opportunities on the horizon
So much for the contracts that everyone heard about last week. Now let’s move on to the subject of contracts that may not yet be incorporated into defense contractor stock prices. Two of these appeared on the horizon last week, when, in twin notifications to Congress, the U.S. Defense Security Cooperation Agency unveiled plans to sell the government of Iraq more than $2.7 billion in arms. Specifically, coincidentally, one of these contracts may also go to Raytheon Company (NYSE:RTN) — a $339 million deal to sell mobile troposcatter radio systems and mobile microwave radio systems to the Iraqi military.

A second contract, both larger and more wide-ranging, proposes to sell the Iraqi military and integrated air defense system consisting of hundreds of Stinger and Hawk surface-to-air missiles, firing units to launch them, and radar and communications gear to tell them where to go. This contract holds the potential to deliver hundreds of millions of dollars of revenue to contractors including The Boeing Company (NYSE:BA), Raytheon, Lockheed Martin, Northrop Grumman, and others.

Hawk mobile missile battery. Source: Wikimedia Commons.

It hasn’t been officially announced yet, and most investors aren’t factoring it into their valuations. No one knows about it — except that now, you do.

The article Pentagon Week: Hunting Subs, Building Trucks, and Arming Iraqis originally appeared on Fool.com and is written by Rich Smith.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin, Northrop Grumman, and Raytheon Company.

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