The Pentagon's multi-billion "handshake deal" with Lockheed Martin Corp. (LMT) - Get Report to purchase a new batch of F-35 fighter jets will be a boon for arms maker Raytheon Co. (RTN) - Get Report

The next-generation jet has had a tough run as cost overruns and political opposition has hampered the delivery of the aircraft in recent years. But Lockheed Martin is expected to book the bulk of the contract for 141 jets, which could add more than $12 billion to the company's coffers in the third quarter, according to The Wall Street Journal. 

Raytheon is the company that will be tasked with arming those 141 aircraft. 

"Raytheon has been involved since Day One," said Tom Copeman, vice president of business development for the company's Air Warfare Systems product line. "We have been working to integrate our state-of-the-art weapons on the next-gen fighter since 1996, when Lockheed Martin was awarded the initial JSF development contract."

Those weapons include:

  • AIM-9X Sidewinder missile, a short-range, air-to-air missile
  • AMRAAM missile, another air-to-air missile 
  • JSM missile, "the only fifth-generation cruise missile that will be integrated onto the F-35"
  • JSOW glide weapon, the Navy's first air0launched, network-enabled weapon
  • Paveway bomb, which Raytheon says is the "best weapon to use against maneuvering targets"
  • SDB II, the F-35 will be able to carry eight SDB II bombs internally and 16 externally

"Bottom line, despite Lockheed Martin being the one to officially receive the contract, there is a lot to be excited about for our Raytheon position as it not only benefits from the inclusion of the DAS radar system on the F-35 but also stands to gain as offensive weapons systems such as the AIM-9x missiles, AMRAAM missiles, JSM missiles, the JSOW glide weapon, Paveway bomb and SDB II bomb are replenished throughout the F-35's operational lifetime," Action Alerts PLUS senior analyst Zev Firma wrote in a recent note

Raytheon shares were rising 0.45% on Monday while Lockheed Martin gained 0.36%. 

Raytheon is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells RTN? Learn more now.