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Northrop Grumman (NOC) Ascends While Market Falls: Some Facts to Note

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Northrop Grumman (NOC - Free Report) closed at $490.76 in the latest trading session, marking a +0.36% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 1.34% for the day. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq lost 1.62%.

The the stock of defense contractor has risen by 12.16% in the past month, leading the Aerospace sector's gain of 0.17% and the S&P 500's loss of 1.57%.

The investment community will be closely monitoring the performance of Northrop Grumman in its forthcoming earnings report. The company is scheduled to release its earnings on October 26, 2023. The company is predicted to post an EPS of $5.77, indicating a 2.04% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.67 billion, reflecting a 7.76% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $22.68 per share and a revenue of $38.72 billion, representing changes of -11.2% and +5.77%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Northrop Grumman. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% higher. Northrop Grumman presently features a Zacks Rank of #2 (Buy).

Investors should also note Northrop Grumman's current valuation metrics, including its Forward P/E ratio of 21.57. This denotes a premium relative to the industry's average Forward P/E of 15.93.

One should further note that NOC currently holds a PEG ratio of 5.82. 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 had an average PEG ratio of 1.82 as trading concluded yesterday.

The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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