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Northrop Grumman (NOC) Gains But Lags Market: What You Should Know
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In the latest trading session, Northrop Grumman (NOC - Free Report) closed at $461.20, marking a +0.48% move from the previous day. The stock lagged the S&P 500's daily gain of 1.92%. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.16%.
Prior to today's trading, shares of the defense contractor had gained 2.22% over the past month. This has outpaced the Aerospace sector's gain of 1.82% and the S&P 500's gain of 1.54% in that time.
Wall Street will be looking for positivity from Northrop Grumman as it approaches its next earnings report date. This is expected to be July 28, 2022. The company is expected to report EPS of $6.03, down 6.07% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Any recent changes to analyst estimates for Northrop Grumman should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Northrop Grumman is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Northrop Grumman has a Forward P/E ratio of 18.51 right now. For comparison, its industry has an average Forward P/E of 16.33, which means Northrop Grumman is trading at a premium to the group.
Investors should also note that NOC has a PEG ratio of 3.03 right now. 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 1.99 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.
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Northrop Grumman (NOC) Gains But Lags Market: What You Should Know
In the latest trading session, Northrop Grumman (NOC - Free Report) closed at $461.20, marking a +0.48% move from the previous day. The stock lagged the S&P 500's daily gain of 1.92%. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.16%.
Prior to today's trading, shares of the defense contractor had gained 2.22% over the past month. This has outpaced the Aerospace sector's gain of 1.82% and the S&P 500's gain of 1.54% in that time.
Wall Street will be looking for positivity from Northrop Grumman as it approaches its next earnings report date. This is expected to be July 28, 2022. The company is expected to report EPS of $6.03, down 6.07% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Any recent changes to analyst estimates for Northrop Grumman should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Northrop Grumman is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Northrop Grumman has a Forward P/E ratio of 18.51 right now. For comparison, its industry has an average Forward P/E of 16.33, which means Northrop Grumman is trading at a premium to the group.
Investors should also note that NOC has a PEG ratio of 3.03 right now. 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 1.99 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.