Advertisement
UK markets closed
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • FTSE 250

    19,884.73
    +74.07 (+0.37%)
     
  • AIM

    743.26
    +1.15 (+0.15%)
     
  • GBP/EUR

    1.1706
    +0.0013 (+0.11%)
     
  • GBP/USD

    1.2638
    +0.0016 (+0.13%)
     
  • Bitcoin GBP

    55,498.67
    -958.29 (-1.70%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • CAC 40

    8,205.81
    +1.00 (+0.01%)
     

Northrop Grumman (NOC) Gains But Lags Market: What You Should Know

Northrop Grumman (NOC) closed the most recent trading day at $443.83, moving +1.21% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.45%. At the same time, the Dow added 2.12%, and the tech-heavy Nasdaq gained 5.41%.

Coming into today, shares of the defense contractor had lost 0.84% in the past month. In that same time, the Aerospace sector lost 3.94%, while the S&P 500 gained 1.53%.

Wall Street will be looking for positivity from Northrop Grumman as it approaches its next earnings report date. In that report, analysts expect Northrop Grumman to post earnings of $5.31 per share. This would mark a year-over-year decline of 12.38%. Our most recent consensus estimate is calling for quarterly revenue of $9.3 billion, up 5.7% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $22.50 per share and revenue of $38.33 billion, which would represent changes of -11.9% and +4.71%, respectively, from the prior year.

ADVERTISEMENT

Investors might also notice recent changes to analyst estimates for Northrop Grumman. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. Northrop Grumman is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Northrop Grumman currently has a Forward P/E ratio of 19.49. This valuation marks a premium compared to its industry's average Forward P/E of 15.65.

We can also see that NOC currently has a PEG ratio of 5.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense industry currently had an average PEG ratio of 1.76 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 48% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Northrop Grumman Corporation (NOC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research