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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 $461.57, moving +0.56% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.42%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 5.16%.
Heading into today, shares of the defense contractor had lost 1.1% over the past month, outpacing the Aerospace sector's loss of 1.26% and lagging the S&P 500's gain of 0.27% in that time.
Investors will be hoping for strength from Northrop Grumman as it approaches its next earnings release, which is expected to be April 27, 2023. On that day, Northrop Grumman is projected to report earnings of $5.23 per share, which would represent a year-over-year decline of 14.26%. 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 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 0.69% higher. Northrop Grumman is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Northrop Grumman is holding a Forward P/E ratio of 20.83. For comparison, its industry has an average Forward P/E of 17.64, which means Northrop Grumman is trading at a premium to the group.
It is also worth noting that NOC currently has a PEG ratio of 6.04. 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. NOC's industry had an average PEG ratio of 1.9 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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) Gains But Lags Market: What You Should Know
Northrop Grumman (NOC - Free Report) closed the most recent trading day at $461.57, moving +0.56% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.42%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 5.16%.
Heading into today, shares of the defense contractor had lost 1.1% over the past month, outpacing the Aerospace sector's loss of 1.26% and lagging the S&P 500's gain of 0.27% in that time.
Investors will be hoping for strength from Northrop Grumman as it approaches its next earnings release, which is expected to be April 27, 2023. On that day, Northrop Grumman is projected to report earnings of $5.23 per share, which would represent a year-over-year decline of 14.26%. 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 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 0.69% higher. Northrop Grumman is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Northrop Grumman is holding a Forward P/E ratio of 20.83. For comparison, its industry has an average Forward P/E of 17.64, which means Northrop Grumman is trading at a premium to the group.
It is also worth noting that NOC currently has a PEG ratio of 6.04. 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. NOC's industry had an average PEG ratio of 1.9 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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.