We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Northrop Grumman (NOC) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
In the latest trading session, Northrop Grumman (NOC - Free Report) closed at $501.44, marking a +1.84% move from the previous day. This change lagged the S&P 500's 2.6% gain on the day. Elsewhere, the Dow gained 2.83%, while the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the defense contractor had gained 1.55% over the past month. This has outpaced the Aerospace sector's loss of 7.91% and the S&P 500's loss of 12.9% in that time.
Northrop Grumman will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect Northrop Grumman to post earnings of $6.13 per share. This would mark a year-over-year decline of 7.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.14 billion, up 4.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $24.76 per share and revenue of $36.35 billion, which would represent changes of -3.39% and +1.92%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Northrop Grumman. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Northrop Grumman is currently a Zacks Rank #4 (Sell).
Investors should also note Northrop Grumman's current valuation metrics, including its Forward P/E ratio of 19.89. Its industry sports an average Forward P/E of 16.92, so we one might conclude that Northrop Grumman is trading at a premium comparatively.
Meanwhile, NOC's PEG ratio is currently 9.08. 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 was holding an average PEG ratio of 1.8 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Northrop Grumman (NOC) Gains But Lags Market: What You Should Know
In the latest trading session, Northrop Grumman (NOC - Free Report) closed at $501.44, marking a +1.84% move from the previous day. This change lagged the S&P 500's 2.6% gain on the day. Elsewhere, the Dow gained 2.83%, while the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the defense contractor had gained 1.55% over the past month. This has outpaced the Aerospace sector's loss of 7.91% and the S&P 500's loss of 12.9% in that time.
Northrop Grumman will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect Northrop Grumman to post earnings of $6.13 per share. This would mark a year-over-year decline of 7.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.14 billion, up 4.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $24.76 per share and revenue of $36.35 billion, which would represent changes of -3.39% and +1.92%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Northrop Grumman. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Northrop Grumman is currently a Zacks Rank #4 (Sell).
Investors should also note Northrop Grumman's current valuation metrics, including its Forward P/E ratio of 19.89. Its industry sports an average Forward P/E of 16.92, so we one might conclude that Northrop Grumman is trading at a premium comparatively.
Meanwhile, NOC's PEG ratio is currently 9.08. 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 was holding an average PEG ratio of 1.8 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.