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Northrop Grumman (NOC) Surges 11.4%: Is This an Indication of Further Gains?
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Northrop Grumman (NOC - Free Report) shares rallied 11.4% in the last trading session to close at $471.61. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.1% gain over the past four weeks.
The recent attack made by Palestine’s Hamas group on Israel and the following retaliatory strike from the Israeli military in Gaza has once again created a war zone the Middle East. Such conflicts tend to boost investors’ confidence in defense stocks, which in turn must have resulted in the latest uptick in NOC’s share price.
This defense contractor is expected to post quarterly earnings of $5.75 per share in its upcoming report, which represents a year-over-year change of -2.4%. Revenues are expected to be $9.68 billion, up 7.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Northrop Grumman, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NOC going forward to see if this recent jump can turn into more strength down the road.
Northrop Grumman belongs to the Zacks Aerospace - Defense industry. Another stock from the same industry, Virgin Galactic (SPCE - Free Report) , closed the last trading session 8.9% lower at $1.53. Over the past month, SPCE has returned -26.6%.
For Virgin Galactic, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.42. This represents a change of +23.6% from what the company reported a year ago. Virgin Galactic currently has a Zacks Rank of #2 (Buy).
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Northrop Grumman (NOC) Surges 11.4%: Is This an Indication of Further Gains?
Northrop Grumman (NOC - Free Report) shares rallied 11.4% in the last trading session to close at $471.61. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.1% gain over the past four weeks.
The recent attack made by Palestine’s Hamas group on Israel and the following retaliatory strike from the Israeli military in Gaza has once again created a war zone the Middle East. Such conflicts tend to boost investors’ confidence in defense stocks, which in turn must have resulted in the latest uptick in NOC’s share price.
This defense contractor is expected to post quarterly earnings of $5.75 per share in its upcoming report, which represents a year-over-year change of -2.4%. Revenues are expected to be $9.68 billion, up 7.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Northrop Grumman, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NOC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Northrop Grumman belongs to the Zacks Aerospace - Defense industry. Another stock from the same industry, Virgin Galactic (SPCE - Free Report) , closed the last trading session 8.9% lower at $1.53. Over the past month, SPCE has returned -26.6%.
For Virgin Galactic, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.42. This represents a change of +23.6% from what the company reported a year ago. Virgin Galactic currently has a Zacks Rank of #2 (Buy).