Elbit Systems Ltd. (ESLT) stock rose more than 2% in Thursday's premarket trading after the Israeli defense technology company secured a $260 million contract to supply rocket artillery systems to a European NATO member.

$260 Million NATO Contract Boosts Outlook

Elbit Systems said Thursday it won a contract worth approximately $260 million to supply its Precise & Universal Launching System (PULS) rocket artillery systems and munitions.

The company expects to complete the contract over five years. However, it did not identify the European NATO customer.

The PULS system can launch unguided rockets, precision-guided munitions and missiles across different ranges.

Moreover, the system works with existing wheeled and tracked military vehicles, helping reduce maintenance and training costs.

CEO Bezhalel Machlis said continued demand from European and NATO customers highlights the system's versatility and operational capabilities.

He also emphasized Elbit's role in supporting European defense modernization programs.

Earnings And Analyst Outlook

Investors are also awaiting Elbit's third-quarter earnings report, scheduled for Nov. 17.

Analysts expect earnings of $3.84 per share, up from $3.35 a year earlier. Revenue is forecast to reach $2.19 billion, compared with $1.92 billion last year.

Meanwhile, the stock carries a Hold consensus rating and an average analyst price forecast of $837.50.

The stock trades at a price-to-earnings ratio of 54.6, reflecting a premium valuation.

Elbit's MarketDash Edge Rankings show strong Growth and Quality scores of 89.15 and 83.77, respectively. However, its Value score of 25.41 points to valuation concerns.

Technical Indicators Signal Mixed Momentum

Elbit shares are trading below their 20-day simple moving average (SMA) of $744.02 and 100-day SMA of $747.53.

However, the stock remains above its 50-day SMA of $723.26, suggesting the intermediate trend remains constructive.

The relative strength index (RSI) stands at 49.60, indicating neutral momentum.

Meanwhile, September's death cross, when the 50-day SMA fell below the 200-day SMA, continues to signal longer-term caution.

The 20-day SMA represents immediate resistance, while the 50-day SMA provides potential support.

Elbit remains below its 52-week high of $1,016.06 but well above its low of $453.

ESLT Stock Price Activity: Elbit Systems shares were up 2.16% at $741.09 during premarket trading on Thursday, according to market data.