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Northrop Grumman (NOC) Stock Sinks As Market Gains: What You Should Know
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Northrop Grumman (NOC - Free Report) closed at $443.93 in the latest trading session, marking a -1.13% move from the prior day. This move lagged the S&P 500's daily gain of 0.22%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.2%.
Coming into today, shares of the defense contractor had gained 0.12% in the past month. In that same time, the Aerospace sector lost 3.93%, while the S&P 500 lost 8.32%.
Investors will be hoping for strength from Northrop Grumman as it approaches its next earnings release. The company is expected to report EPS of $6.03, down 6.07% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.12 billion, down 0.37% from the prior-year quarter.
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.
Any recent changes to analyst estimates for Northrop Grumman should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Northrop Grumman is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Northrop Grumman is currently trading at a Forward P/E ratio of 18.11. Its industry sports an average Forward P/E of 16.33, so we one might conclude that Northrop Grumman is trading at a premium comparatively.
We can also see that NOC currently has a PEG ratio of 2.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense was holding an average PEG ratio of 1.95 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 217, which puts it in the bottom 15% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Northrop Grumman (NOC) Stock Sinks As Market Gains: What You Should Know
Northrop Grumman (NOC - Free Report) closed at $443.93 in the latest trading session, marking a -1.13% move from the prior day. This move lagged the S&P 500's daily gain of 0.22%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.2%.
Coming into today, shares of the defense contractor had gained 0.12% in the past month. In that same time, the Aerospace sector lost 3.93%, while the S&P 500 lost 8.32%.
Investors will be hoping for strength from Northrop Grumman as it approaches its next earnings release. The company is expected to report EPS of $6.03, down 6.07% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.12 billion, down 0.37% from the prior-year quarter.
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.
Any recent changes to analyst estimates for Northrop Grumman should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Northrop Grumman is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Northrop Grumman is currently trading at a Forward P/E ratio of 18.11. Its industry sports an average Forward P/E of 16.33, so we one might conclude that Northrop Grumman is trading at a premium comparatively.
We can also see that NOC currently has a PEG ratio of 2.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense was holding an average PEG ratio of 1.95 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 217, which puts it in the bottom 15% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.