Why V2X Shares Soared This Week

Integrated Defense Company V2X (VVX 3.92%) has been a popular stock on the stock market for the past few days. Following news of a high-value government contract, investors flocked to V2X stock. That has boosted their price by more than 15 percent year-to-date since Friday before the market opened, according to data compiled by S&P Global Market Intelligence.

A new 10 figure contract

Wednesday was an interesting day for V2X. That’s when the defense company announced the deal, which it estimates is worth $3.7 billion over five years. The counterparty is a highly trusted customer, the US Army, and the contract covers the provision of “readiness capabilities” to military units around the world.

V2X added that the core of that task is what it calls “mission enablement services” for the Army’s many training aids, devices, simulations and simulators. The company will provide a range of services and support functions for these devices, which are located both in this country and in many locations overseas and number in the hundreds of thousands.

This is not 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 use the proceeds.

Casting a wide net

V2X is clearly determined to capture as wide a business as possible from such a clientele. Senior Vice President of Global Mission Solutions Ken Shreves said this contract “underscores V2X’s commitment to providing end-to-end end-to-end solutions throughout the entire mission lifecycle.”