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Northrop Grumman (NOC) Increases Yet Falls Behind Market: What Investors Need to Know
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Northrop Grumman (NOC - Free Report) closed the most recent trading day at $485.01, moving +1.2% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.37%. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 1.38%.
Heading into today, shares of the defense contractor had gained 2.66% over the past month, lagging the Aerospace sector's gain of 7.86% and the S&P 500's gain of 5.37% in that time.
The investment community will be closely monitoring the performance of Northrop Grumman in its forthcoming earnings report. It is anticipated that the company will report an EPS of $5.77, marking a 23.07% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $10.4 billion, indicating a 3.7% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $22.73 per share and revenue of $39.02 billion. These totals would mark changes of -11% and +6.61%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Northrop Grumman. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Northrop Grumman is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Northrop Grumman is presently being traded at a Forward P/E ratio of 21.08. This denotes a premium relative to the industry's average Forward P/E of 17.44.
It is also worth noting that NOC currently has a PEG ratio of 8.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense was holding an average PEG ratio of 1.92 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Northrop Grumman (NOC) Increases Yet Falls Behind Market: What Investors Need to Know
Northrop Grumman (NOC - Free Report) closed the most recent trading day at $485.01, moving +1.2% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.37%. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 1.38%.
Heading into today, shares of the defense contractor had gained 2.66% over the past month, lagging the Aerospace sector's gain of 7.86% and the S&P 500's gain of 5.37% in that time.
The investment community will be closely monitoring the performance of Northrop Grumman in its forthcoming earnings report. It is anticipated that the company will report an EPS of $5.77, marking a 23.07% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $10.4 billion, indicating a 3.7% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $22.73 per share and revenue of $39.02 billion. These totals would mark changes of -11% and +6.61%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Northrop Grumman. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Northrop Grumman is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Northrop Grumman is presently being traded at a Forward P/E ratio of 21.08. This denotes a premium relative to the industry's average Forward P/E of 17.44.
It is also worth noting that NOC currently has a PEG ratio of 8.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense was holding an average PEG ratio of 1.92 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.