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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 $455.80, marking a +1.02% move from the previous day. The stock lagged the S&P 500's daily gain of 1.23%. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, lost 2.24%.
Prior to today's trading, shares of the defense contractor had gained 2.9% over the past month. This has lagged the Aerospace sector's gain of 5.73% and the S&P 500's gain of 4.67% in that time.
Northrop Grumman will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2023. In that report, analysts expect Northrop Grumman to post earnings of $5.31 per share. This would mark a year-over-year decline of 12.38%. Meanwhile, our latest consensus estimate is calling for revenue of $9.32 billion, up 5.92% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.57 per share and revenue of $38.34 billion. These totals would mark changes of -11.63% and +4.74%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Northrop Grumman. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. Northrop Grumman is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Northrop Grumman is currently trading at a Forward P/E ratio of 20. For comparison, its industry has an average Forward P/E of 16.41, which means Northrop Grumman is trading at a premium to the group.
We can also see that NOC currently has a PEG ratio of 5.26. 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. The Aerospace - Defense industry currently had an average PEG ratio of 1.82 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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.
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 $455.80, marking a +1.02% move from the previous day. The stock lagged the S&P 500's daily gain of 1.23%. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, lost 2.24%.
Prior to today's trading, shares of the defense contractor had gained 2.9% over the past month. This has lagged the Aerospace sector's gain of 5.73% and the S&P 500's gain of 4.67% in that time.
Northrop Grumman will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2023. In that report, analysts expect Northrop Grumman to post earnings of $5.31 per share. This would mark a year-over-year decline of 12.38%. Meanwhile, our latest consensus estimate is calling for revenue of $9.32 billion, up 5.92% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.57 per share and revenue of $38.34 billion. These totals would mark changes of -11.63% and +4.74%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Northrop Grumman. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. Northrop Grumman is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Northrop Grumman is currently trading at a Forward P/E ratio of 20. For comparison, its industry has an average Forward P/E of 16.41, which means Northrop Grumman is trading at a premium to the group.
We can also see that NOC currently has a PEG ratio of 5.26. 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. The Aerospace - Defense industry currently had an average PEG ratio of 1.82 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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.
To follow NOC in the coming trading sessions, be sure to utilize Zacks.com.