Please ensure Javascript is enabled for purposes of website accessibility

Pentagon Announces Contracts With Dell, Cardinal Health, Raytheon

By Rich Smith - Apr 10, 2013 at 1:13PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Pentagon buys computers, lab supplies, and decoys.

Judging by the contract announcements coming out of the Department of Defense these past few days, Pentagon spending is drying up faster than a Midwest cornfield in July.

Yesterday, the Pentagon announced awards of just $347 million in new contracts to contractors. Some were not the kind of companies you'd expect. For example:

  • Dell (DELL.DL) landed a $9.6 million contract to supply the U.S. Army with desktop computers and tablets.
  • Cardinal Health (CAH 0.48%) won $18.6 million as a contract modification exercising an option year on a contract to supply various Army, Navy, Air Force, and Marine Corps locations, and federal civilian agencies, with laboratory supplies through April 12, 2014.

On the other hand, traditional defense contractors are still earning money by working for the Pentagon. On Tuesday, Raytheon (RTN) was awarded a $35.2 million order for AN/ALE-50 towed decoys, which aircraft can deploy to distract incoming missiles. Raytheon is expected to complete deliveries on this contract by March 31, 2015.

 

link

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dell Technologies Inc. Stock Quote
Dell Technologies Inc.
DELL.DL
Cardinal Health, Inc. Stock Quote
Cardinal Health, Inc.
CAH
$58.02 (0.48%) $0.28
Raytheon Company Stock Quote
Raytheon Company
RTN

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
332%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.