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Northrop Grumman (NOC) Dips More Than Broader Markets: What You Should Know
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Northrop Grumman (NOC - Free Report) closed the most recent trading day at $454.05, moving -0.88% from the previous trading session. This move lagged the S&P 500's daily loss of 0.77%. Elsewhere, the Dow lost 0.65%, while the tech-heavy Nasdaq lost 2.23%.
Prior to today's trading, shares of the defense contractor had gained 5.66% over the past month. This has outpaced the Aerospace sector's gain of 1.83% and the S&P 500's gain of 4.66% in that time.
Northrop Grumman will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $5.31, down 12.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.3 billion, up 5.7% from the year-ago period.
NOC's full-year Zacks Consensus Estimates are calling for earnings of $22.57 per share and revenue of $38.33 billion. These results would represent year-over-year changes of -11.63% and +4.71%, 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 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. 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.
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 remained stagnant. Northrop Grumman currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Northrop Grumman is currently trading at a Forward P/E ratio of 20.3. For comparison, its industry has an average Forward P/E of 16.37, 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 5.34. 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 1.79 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Northrop Grumman (NOC) Dips More Than Broader Markets: What You Should Know
Northrop Grumman (NOC - Free Report) closed the most recent trading day at $454.05, moving -0.88% from the previous trading session. This move lagged the S&P 500's daily loss of 0.77%. Elsewhere, the Dow lost 0.65%, while the tech-heavy Nasdaq lost 2.23%.
Prior to today's trading, shares of the defense contractor had gained 5.66% over the past month. This has outpaced the Aerospace sector's gain of 1.83% and the S&P 500's gain of 4.66% in that time.
Northrop Grumman will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $5.31, down 12.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.3 billion, up 5.7% from the year-ago period.
NOC's full-year Zacks Consensus Estimates are calling for earnings of $22.57 per share and revenue of $38.33 billion. These results would represent year-over-year changes of -11.63% and +4.71%, 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 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. 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.
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 remained stagnant. Northrop Grumman currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Northrop Grumman is currently trading at a Forward P/E ratio of 20.3. For comparison, its industry has an average Forward P/E of 16.37, 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 5.34. 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 1.79 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.