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Northrop Grumman (NOC) Outpaces Stock Market Gains: What You Should Know
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Northrop Grumman (NOC - Free Report) closed at $272.80 in the latest trading session, marking a +1.1% move from the prior day. This move outpaced the S&P 500's daily gain of 0.85%. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 1.29%.
Prior to today's trading, shares of the defense contractor had gained 12.63% over the past month. This has lagged the Aerospace sector's gain of 17.21% and outpaced the S&P 500's gain of 12.44% in that time.
Wall Street will be looking for positivity from NOC as it approaches its next earnings report date. This is expected to be January 31, 2019. On that day, NOC is projected to report earnings of $4.45 per share, which would represent year-over-year growth of 57.8%. Our most recent consensus estimate is calling for quarterly revenue of $8.11 billion, up 22.23% from the year-ago period.
Investors should also note any recent changes to analyst estimates for NOC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 6.05% higher within the past month. NOC is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that NOC has a Forward P/E ratio of 13.8 right now. Its industry sports an average Forward P/E of 14.18, so we one might conclude that NOC is trading at a discount comparatively.
It is also worth noting that NOC currently has a PEG ratio of 0.93. 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 1.32 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% 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.
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Northrop Grumman (NOC) Outpaces Stock Market Gains: What You Should Know
Northrop Grumman (NOC - Free Report) closed at $272.80 in the latest trading session, marking a +1.1% move from the prior day. This move outpaced the S&P 500's daily gain of 0.85%. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 1.29%.
Prior to today's trading, shares of the defense contractor had gained 12.63% over the past month. This has lagged the Aerospace sector's gain of 17.21% and outpaced the S&P 500's gain of 12.44% in that time.
Wall Street will be looking for positivity from NOC as it approaches its next earnings report date. This is expected to be January 31, 2019. On that day, NOC is projected to report earnings of $4.45 per share, which would represent year-over-year growth of 57.8%. Our most recent consensus estimate is calling for quarterly revenue of $8.11 billion, up 22.23% from the year-ago period.
Investors should also note any recent changes to analyst estimates for NOC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 6.05% higher within the past month. NOC is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that NOC has a Forward P/E ratio of 13.8 right now. Its industry sports an average Forward P/E of 14.18, so we one might conclude that NOC is trading at a discount comparatively.
It is also worth noting that NOC currently has a PEG ratio of 0.93. 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 1.32 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% 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.