Why V2X Stock Was Bouncing Higher This Week
Integrated defense company V2X (NYSE: VVX) was a popular title on the stock exchange in recent days. Following its news of a big-ticket government contract, investors flocked to V2X shares. This rocketed their price up by more than 15% week to date as of Friday before market open, according to data compiled by S&P Global Market Intelligence.
A new 10-figure contract
Wednesday was an exciting day for V2X. That's when the defense company announced the deal, which by its estimation is worth $3.7 billion across a five-year period. The counterparty is a very reliable client, the U.S. Army, and the contract covers the provision of "readiness capabilities," to Army units around the world.
V2X added that the core of this job is what's termed "mission enablement services" for the Army's many training aids, devices, simulations, and simulators. The company will provide a range of service and support functions for these devices, which are located both in this country and in many locations abroad, and number in the hundreds of thousands.
This isn't V2X's first work with the Army. It and its predecessor companies have been business partners of the organization for decades, providing solutions for selected bases and centers in this country and abroad.
In the press release trumpeting the new deal, V2X did not specify how it would utilize the proceeds.
Casting a wide net
V2X is clearly determined to capture as broad a business as possible from such clientele. Senior Vice President of Global Mission Solutions Ken Shreves said this contract "underscores V2X's commitment to delivering comprehensive, end-to-end solutions throughout the entire mission lifecycle."
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why V2X Stock Was Bouncing Higher This Week was originally published by The Motley Fool