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Here's How Much a $1000 Investment in Northrop Grumman Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Northrop Grumman (NOC - Free Report) ten years ago? It may not have been easy to hold on to NOC for all that time, but if you did, how much would your investment be worth today?
Northrop Grumman's Business In-Depth
With that in mind, let's take a look at Northrop Grumman's main business drivers.
Originally formed in 1939 as Northrop Aircraft Incorporated and reincorporated in Delaware in 1985 as Northrop Corporation was a principal developer of flying wing technology. In 1994, the company acquired Grumman Corporation (Grumman), after which the company was renamed Northrop Grumman Corporation. Currently, this global security company supplies a broad array of products and services to the U.S. Department of Defense (DoD) including electronic systems, information technology, aircraft, space technology and systems integration services. Northrop Grumman has realigned its business units effective January 2020.Northrop Grumman's Aeronautics Systems unit focuses on the development, integration, production and support of manned aircraft and autonomous systems. In 2022, revenues came in at $10,531 million, contributing 28.9% to the company’s total revenues.
Its Defense Systems unit focuses on mission readiness along with battle management and missile systems. In 2022, revenues came in at $5,579 million, contributing 15.2% to the company’s total revenues.
The company's Mission Systems unit includes airborne sensors and networks, cyber and intelligence mission solutions, maritime/land systems and sensors, along with navigation, targeting and survivability. In 2022, revenues came in at $10,396 million, contributing 28.4% to the company’s total revenues.
Its Space Systems unit focuses on launch and strategic missiles as well as varied space related products that Northrop manufactures. In 2022, revenues came in at $12,275 million, contributing 33.5% to the company’s total revenues. However, total revenues of $36,602 million in 2022 were adjusted for inter-segment eliminations of up to $2,179 million.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Northrop Grumman a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in October 2013 would be worth $5,011.80, or a gain of 401.18%, as of October 10, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 161.75% and the price of gold increased 37.04% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for NOC.
Northrop has a strong presence in Air Force, Space & Cyber Security programs, with its product line being well-positioned in high-priority categories. The company continues to witness strong demand for its products, driven by programs like F-35, Triton and SABR radar Global Hawk. Solid U.S. budgetary provisions make one confident about a solid contract inflow from Pentagon for it. This, in turn, should boost its revenues significantly in the coming days. Northrop also holds a strong solvency position. Yet, pandemic-induced labor shortage and supply-chain challenges may continue to impact Northrop’s results in 2023. Moreover, the stock currently has a higher P/B ratio than its industry. The company might incur notable loss while completing the B-21 contract. Northrop’s shares have underperformed the industry in the past year.
The stock has jumped 10.97% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2023; the consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Northrop Grumman Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Northrop Grumman (NOC - Free Report) ten years ago? It may not have been easy to hold on to NOC for all that time, but if you did, how much would your investment be worth today?
Northrop Grumman's Business In-Depth
With that in mind, let's take a look at Northrop Grumman's main business drivers.
Originally formed in 1939 as Northrop Aircraft Incorporated and reincorporated in Delaware in 1985 as Northrop Corporation was a principal developer of flying wing technology. In 1994, the company acquired Grumman Corporation (Grumman), after which the company was renamed Northrop Grumman Corporation. Currently, this global security company supplies a broad array of products and services to the U.S. Department of Defense (DoD) including electronic systems, information technology, aircraft, space technology and systems integration services. Northrop Grumman has realigned its business units effective January 2020.Northrop Grumman's Aeronautics Systems unit focuses on the development, integration, production and support of manned aircraft and autonomous systems. In 2022, revenues came in at $10,531 million, contributing 28.9% to the company’s total revenues.
Its Defense Systems unit focuses on mission readiness along with battle management and missile systems. In 2022, revenues came in at $5,579 million, contributing 15.2% to the company’s total revenues.
The company's Mission Systems unit includes airborne sensors and networks, cyber and intelligence mission solutions, maritime/land systems and sensors, along with navigation, targeting and survivability. In 2022, revenues came in at $10,396 million, contributing 28.4% to the company’s total revenues.
Its Space Systems unit focuses on launch and strategic missiles as well as varied space related products that Northrop manufactures. In 2022, revenues came in at $12,275 million, contributing 33.5% to the company’s total revenues.
However, total revenues of $36,602 million in 2022 were adjusted for inter-segment eliminations of up to $2,179 million.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Northrop Grumman a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in October 2013 would be worth $5,011.80, or a gain of 401.18%, as of October 10, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 161.75% and the price of gold increased 37.04% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for NOC.
Northrop has a strong presence in Air Force, Space & Cyber Security programs, with its product line being well-positioned in high-priority categories. The company continues to witness strong demand for its products, driven by programs like F-35, Triton and SABR radar Global Hawk. Solid U.S. budgetary provisions make one confident about a solid contract inflow from Pentagon for it. This, in turn, should boost its revenues significantly in the coming days. Northrop also holds a strong solvency position. Yet, pandemic-induced labor shortage and supply-chain challenges may continue to impact Northrop’s results in 2023. Moreover, the stock currently has a higher P/B ratio than its industry. The company might incur notable loss while completing the B-21 contract. Northrop’s shares have underperformed the industry in the past year.
The stock has jumped 10.97% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2023; the consensus estimate has moved up as well.