Northrop Grumman (NOC - Free Report) closed the most recent trading day at $306.88, moving +1.2% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.28%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq lost 1.61%.
Coming into today, shares of the defense contractor had gained 6.86% in the past month. In that same time, the Aerospace sector lost 3.29%, while the S&P 500 lost 6.3%.
Wall Street will be looking for positivity from NOC as it approaches its next earnings report date. On that day, NOC is projected to report earnings of $4.63 per share, which would represent year-over-year growth of 17.81%. Our most recent consensus estimate is calling for quarterly revenue of $8.40 billion, up 18% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $19.39 per share and revenue of $33.94 billion. These totals would mark changes of -9.1% and +12.79%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NOC. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NOC currently has a Zacks Rank of #2 (Buy).
Digging into valuation, NOC currently has a Forward P/E ratio of 15.64. For comparison, its industry has an average Forward P/E of 15.64, which means NOC is trading at a no noticeable deviation to the group.
Investors should also note that NOC has a PEG ratio of 1.22 right now. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.