In the latest trading session, Northrop Grumman (NOC - Free Report) closed at $311.27, marking a -2.21% move from the previous day. This change lagged the S&P 500's 0.47% gain on the day. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.05%.
Coming into today, shares of the defense contractor had gained 7.89% in the past month. In that same time, the Aerospace sector gained 4.11%, while the S&P 500 lost 0.08%.
NOC will be looking to display strength as it nears its next earnings release. In that report, analysts expect NOC to post earnings of $4.63 per share. This would mark year-over-year growth of 17.81%. Meanwhile, our latest consensus estimate is calling for revenue of $8.40 billion, up 18% from the prior-year quarter.
NOC's full-year Zacks Consensus Estimates are calling for earnings of $19.42 per share and revenue of $33.94 billion. These results would represent year-over-year changes of -8.95% and +12.79%, respectively.
Any recent changes to analyst estimates for NOC should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. NOC is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, NOC is currently trading at a Forward P/E ratio of 16.39. Its industry sports an average Forward P/E of 16.39, so we one might conclude that NOC is trading at a no noticeable deviation comparatively.
Also, we should mention that NOC has a PEG ratio of 1.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense was holding an average PEG ratio of 1.84 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.