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Here's How Much You'd Have If You Invested $1000 in Northrop Grumman a Decade Ago
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to 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 1985 as Northrop Corporation in Delaware, Northrop 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 like space systems, military aircraft, missile defense, advanced weapons and long-range fire capabilities, mission systems, networking and communications, strategic deterrence systems, and breakthrough technologies, such as advanced computing, microelectronics and cyber. As of Dec 31, 2023, the company operates through the following reportable segments:
Northrop Grumman's Aeronautics Systems unit focuses on the development, integration, production and support of manned aircraft, unmanned autonomous systems as well as airborne battle management and command and control systems. In 2023, this segment’s revenues came in at $10.79 billion, contributing 27.4% to the company’s total revenues.
Its Defense Systems unit focuses on production of advanced tactical weapons and missile defense solutions. It is also a provider of sustainment, modernization and training services for manned and unmanned aircraft and electronics systems. In 2023, this segment’s revenues came in at $5.86 billion, contributing 14.9% 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 2023, this segment’s revenues came in at $10.90 billion, contributing 27.7% to the company’s total revenues.
Its Space Systems unit focuses on launch and strategic missile systems as well as varied space related products like satellites and spacecraft systems, sensors and payloads along with launch vehicles and related propulsion systems. In 2023, this segment’s revenues came in at $13.95 billion, contributing 35.5% to the company’s total revenues.
However, total revenues of $39.29 billion in 2023 were adjusted for inter-segment eliminations of $2.20 billion.
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.
According to our calculations, a $1000 investment made in May 2014 would be worth $3,873, or a 287.30% gain, as of May 14, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 175.18% and the price of gold increased 71.89% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for NOC.
Northrop ended first-quarter 2024 on a bright note, with both its earnings and sales surpassing their respective Zacks Consensus Estimate. The company boasts a strong presence in the Air Force and Space & Cyber Security programs, with its renowned products like B-21 and Triton enjoying a solid market demand. It ended the first quarter with a strong backlog of $78.92 billion. Solid U.S. budgetary provisions should boost the company’s future revenues. Northrop holds a strong solvency position and its shares have outperformed the industry in the past year. However, a shortage of skilled labor may cause Northrop to not deliver products within time, thereby hurting its operating results. The stock also has a higher P/B ratio than its industry. Higher-than-expected cost for its Sentinel program poses a risk to this program’s continuity.
The stock has jumped 5.62% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2024; the consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Northrop Grumman a Decade Ago
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to 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 1985 as Northrop Corporation in Delaware, Northrop 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 like space systems, military aircraft, missile defense, advanced weapons and long-range fire capabilities, mission systems, networking and communications, strategic deterrence systems, and breakthrough technologies, such as advanced computing, microelectronics and cyber. As of Dec 31, 2023, the company operates through the following reportable segments:
Northrop Grumman's Aeronautics Systems unit focuses on the development, integration, production and support of manned aircraft, unmanned autonomous systems as well as airborne battle management and command and control systems. In 2023, this segment’s revenues came in at $10.79 billion, contributing 27.4% to the company’s total revenues.
Its Defense Systems unit focuses on production of advanced tactical weapons and missile defense solutions. It is also a provider of sustainment, modernization and training services for manned and unmanned aircraft and electronics systems. In 2023, this segment’s revenues came in at $5.86 billion, contributing 14.9% 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 2023, this segment’s revenues came in at $10.90 billion, contributing 27.7% to the company’s total revenues.
Its Space Systems unit focuses on launch and strategic missile systems as well as varied space related products like satellites and spacecraft systems, sensors and payloads along with launch vehicles and related propulsion systems. In 2023, this segment’s revenues came in at $13.95 billion, contributing 35.5% to the company’s total revenues.
However, total revenues of $39.29 billion in 2023 were adjusted for inter-segment eliminations of $2.20 billion.
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.
According to our calculations, a $1000 investment made in May 2014 would be worth $3,873, or a 287.30% gain, as of May 14, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 175.18% and the price of gold increased 71.89% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for NOC.
Northrop ended first-quarter 2024 on a bright note, with both its earnings and sales surpassing their respective Zacks Consensus Estimate. The company boasts a strong presence in the Air Force and Space & Cyber Security programs, with its renowned products like B-21 and Triton enjoying a solid market demand. It ended the first quarter with a strong backlog of $78.92 billion. Solid U.S. budgetary provisions should boost the company’s future revenues. Northrop holds a strong solvency position and its shares have outperformed the industry in the past year. However, a shortage of skilled labor may cause Northrop to not deliver products within time, thereby hurting its operating results. The stock also has a higher P/B ratio than its industry. Higher-than-expected cost for its Sentinel program poses a risk to this program’s continuity.
The stock has jumped 5.62% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2024; the consensus estimate has moved up as well.