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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 $495.79, marking a +0.08% move from the previous day. This change lagged the S&P 500's 0.7% gain on the day. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 7.5%.
Heading into today, shares of the defense contractor had lost 7.43% over the past month, lagging the Aerospace sector's gain of 0.8% and the S&P 500's loss of 0.94% in that time.
Northrop Grumman will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2023. On that day, Northrop Grumman is projected to report earnings of $6.60 per share, which would represent year-over-year growth of 10%. Our most recent consensus estimate is calling for quarterly revenue of $9.66 billion, up 11.81% from the year-ago period.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Northrop Grumman is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Northrop Grumman is holding a Forward P/E ratio of 22.26. This valuation marks a premium compared to its industry's average Forward P/E of 17.31.
Meanwhile, NOC's PEG ratio is currently 6.66. 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 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow NOC in the coming trading sessions, be sure to utilize 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 $495.79, marking a +0.08% move from the previous day. This change lagged the S&P 500's 0.7% gain on the day. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 7.5%.
Heading into today, shares of the defense contractor had lost 7.43% over the past month, lagging the Aerospace sector's gain of 0.8% and the S&P 500's loss of 0.94% in that time.
Northrop Grumman will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2023. On that day, Northrop Grumman is projected to report earnings of $6.60 per share, which would represent year-over-year growth of 10%. Our most recent consensus estimate is calling for quarterly revenue of $9.66 billion, up 11.81% from the year-ago period.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Northrop Grumman is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Northrop Grumman is holding a Forward P/E ratio of 22.26. This valuation marks a premium compared to its industry's average Forward P/E of 17.31.
Meanwhile, NOC's PEG ratio is currently 6.66. 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 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow NOC in the coming trading sessions, be sure to utilize Zacks.com.