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Northrop Grumman (NOC) Gains But Lags Market: What You Should Know
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Northrop Grumman (NOC - Free Report) closed the most recent trading day at $535.18, moving +1.18% from the previous trading session. This move lagged the S&P 500's daily gain of 1.43%. Elsewhere, the Dow gained 1.58%, while the tech-heavy Nasdaq added 0.03%.
Prior to today's trading, shares of the defense contractor had gained 7.36% over the past month. This has outpaced the Aerospace sector's gain of 1.82% and the S&P 500's gain of 5.12% in that time.
Northrop Grumman will be looking to display strength as it nears its next earnings release. On that day, Northrop Grumman is projected to report earnings of $6.60 per share, which would represent year-over-year growth of 10%. Meanwhile, our latest consensus estimate is calling for revenue of $9.87 billion, up 14.25% from the prior-year quarter.
NOC's full-year Zacks Consensus Estimates are calling for earnings of $24.64 per share and revenue of $36.51 billion. These results would represent year-over-year changes of -3.86% and +2.38%, respectively.
Investors should also note any recent changes to analyst estimates for Northrop Grumman. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.24% lower. 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 21.47 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 21.47.
Investors should also note that NOC has a PEG ratio of 6.43 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NOC's industry had an average PEG ratio of 2.19 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Northrop Grumman (NOC) Gains But Lags Market: What You Should Know
Northrop Grumman (NOC - Free Report) closed the most recent trading day at $535.18, moving +1.18% from the previous trading session. This move lagged the S&P 500's daily gain of 1.43%. Elsewhere, the Dow gained 1.58%, while the tech-heavy Nasdaq added 0.03%.
Prior to today's trading, shares of the defense contractor had gained 7.36% over the past month. This has outpaced the Aerospace sector's gain of 1.82% and the S&P 500's gain of 5.12% in that time.
Northrop Grumman will be looking to display strength as it nears its next earnings release. On that day, Northrop Grumman is projected to report earnings of $6.60 per share, which would represent year-over-year growth of 10%. Meanwhile, our latest consensus estimate is calling for revenue of $9.87 billion, up 14.25% from the prior-year quarter.
NOC's full-year Zacks Consensus Estimates are calling for earnings of $24.64 per share and revenue of $36.51 billion. These results would represent year-over-year changes of -3.86% and +2.38%, respectively.
Investors should also note any recent changes to analyst estimates for Northrop Grumman. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.24% lower. 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 21.47 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 21.47.
Investors should also note that NOC has a PEG ratio of 6.43 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NOC's industry had an average PEG ratio of 2.19 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.