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 As Market Dips: What You Should Know
Read MoreHide Full Article
In the latest trading session, Northrop Grumman (NOC - Free Report) closed at $463.82, marking a +0.19% move from the previous day. This change outpaced the S&P 500's 2.91% loss on the day. Elsewhere, the Dow lost 2.73%, while the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the defense contractor had gained 2.69% over the past month, lagging the Aerospace sector's gain of 2.82% and outpacing the S&P 500's gain of 0.84% in that time.
Wall Street will be looking for positivity from Northrop Grumman as it approaches its next earnings report date. The company is expected to report EPS of $6.03, down 6.07% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.12 billion, down 0.37% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.80 per share and revenue of $36.59 billion. These totals would mark changes of -3.24% and +2.6%, respectively, from last 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. Northrop Grumman currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Northrop Grumman currently has a Forward P/E ratio of 18.67. This valuation marks a premium compared to its industry's average Forward P/E of 17.69.
We can also see that NOC currently has a PEG ratio of 3.06. 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. NOC's industry had an average PEG ratio of 2.1 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 230, which puts it in the bottom 10% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Northrop Grumman (NOC) Gains As Market Dips: What You Should Know
In the latest trading session, Northrop Grumman (NOC - Free Report) closed at $463.82, marking a +0.19% move from the previous day. This change outpaced the S&P 500's 2.91% loss on the day. Elsewhere, the Dow lost 2.73%, while the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the defense contractor had gained 2.69% over the past month, lagging the Aerospace sector's gain of 2.82% and outpacing the S&P 500's gain of 0.84% in that time.
Wall Street will be looking for positivity from Northrop Grumman as it approaches its next earnings report date. The company is expected to report EPS of $6.03, down 6.07% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.12 billion, down 0.37% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.80 per share and revenue of $36.59 billion. These totals would mark changes of -3.24% and +2.6%, respectively, from last 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. Northrop Grumman currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Northrop Grumman currently has a Forward P/E ratio of 18.67. This valuation marks a premium compared to its industry's average Forward P/E of 17.69.
We can also see that NOC currently has a PEG ratio of 3.06. 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. NOC's industry had an average PEG ratio of 2.1 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 230, which puts it in the bottom 10% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.