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 But Lags Market: What You Should Know
Read MoreHide Full Article
Northrop Grumman (NOC - Free Report) closed at $450.15 in the latest trading session, marking a +0.28% move from the prior day. The stock lagged the S&P 500's daily gain of 1.76%. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 3.03%.
Heading into today, shares of the defense contractor had lost 2.61% over the past month, outpacing the Aerospace sector's loss of 5.68% and the S&P 500's loss of 5.94% in that time.
Wall Street will be looking for positivity from Northrop Grumman as it approaches its next earnings report date. On that day, Northrop Grumman is projected to report earnings of $5.22 per share, which would represent a year-over-year decline of 14.43%. Meanwhile, our latest consensus estimate is calling for revenue of $9.19 billion, up 4.48% from the prior-year quarter.
NOC's full-year Zacks Consensus Estimates are calling for earnings of $22.04 per share and revenue of $38.28 billion. These results would represent year-over-year changes of -13.7% and +4.57%, respectively.
Investors might also notice recent changes to analyst estimates for Northrop Grumman. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.69% higher. Northrop Grumman is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Northrop Grumman is currently trading at a Forward P/E ratio of 20.37. This represents a premium compared to its industry's average Forward P/E of 16.89.
Meanwhile, NOC's PEG ratio is currently 5.9. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.86 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% 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.
To follow NOC in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Northrop Grumman (NOC) Gains But Lags Market: What You Should Know
Northrop Grumman (NOC - Free Report) closed at $450.15 in the latest trading session, marking a +0.28% move from the prior day. The stock lagged the S&P 500's daily gain of 1.76%. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 3.03%.
Heading into today, shares of the defense contractor had lost 2.61% over the past month, outpacing the Aerospace sector's loss of 5.68% and the S&P 500's loss of 5.94% in that time.
Wall Street will be looking for positivity from Northrop Grumman as it approaches its next earnings report date. On that day, Northrop Grumman is projected to report earnings of $5.22 per share, which would represent a year-over-year decline of 14.43%. Meanwhile, our latest consensus estimate is calling for revenue of $9.19 billion, up 4.48% from the prior-year quarter.
NOC's full-year Zacks Consensus Estimates are calling for earnings of $22.04 per share and revenue of $38.28 billion. These results would represent year-over-year changes of -13.7% and +4.57%, respectively.
Investors might also notice recent changes to analyst estimates for Northrop Grumman. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.69% higher. Northrop Grumman is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Northrop Grumman is currently trading at a Forward P/E ratio of 20.37. This represents a premium compared to its industry's average Forward P/E of 16.89.
Meanwhile, NOC's PEG ratio is currently 5.9. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.86 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% 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.
To follow NOC in the coming trading sessions, be sure to utilize Zacks.com.