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Northrop Grumman (NOC) Gains As Market Dips: What You Should Know
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Northrop Grumman (NOC - Free Report) closed the most recent trading day at $532.52, moving +0.5% from the previous trading session. This change outpaced the S&P 500's 0.9% loss on the day. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.26%.
Heading into today, shares of the defense contractor had gained 1.82% over the past month, lagging the Aerospace sector's gain of 2.07% and outpacing the S&P 500's loss of 2.66% in that time.
Investors will be hoping for strength from Northrop Grumman as it approaches its next earnings release. In that report, analysts expect Northrop Grumman to post earnings of $6.60 per share. This would mark year-over-year growth of 10%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.66 billion, up 11.81% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $24.64 per share and revenue of $36.23 billion, which would represent changes of -3.86% and +1.57%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Northrop Grumman. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Northrop Grumman is currently a Zacks Rank #3 (Hold).
Investors should also note Northrop Grumman's current valuation metrics, including its Forward P/E ratio of 21.5. Its industry sports an average Forward P/E of 21.5, so we one might conclude that Northrop Grumman is trading at a no noticeable deviation comparatively.
It is also worth noting that NOC currently has a PEG ratio of 6.44. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Northrop Grumman (NOC) Gains As Market Dips: What You Should Know
Northrop Grumman (NOC - Free Report) closed the most recent trading day at $532.52, moving +0.5% from the previous trading session. This change outpaced the S&P 500's 0.9% loss on the day. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.26%.
Heading into today, shares of the defense contractor had gained 1.82% over the past month, lagging the Aerospace sector's gain of 2.07% and outpacing the S&P 500's loss of 2.66% in that time.
Investors will be hoping for strength from Northrop Grumman as it approaches its next earnings release. In that report, analysts expect Northrop Grumman to post earnings of $6.60 per share. This would mark year-over-year growth of 10%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.66 billion, up 11.81% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $24.64 per share and revenue of $36.23 billion, which would represent changes of -3.86% and +1.57%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Northrop Grumman. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Northrop Grumman is currently a Zacks Rank #3 (Hold).
Investors should also note Northrop Grumman's current valuation metrics, including its Forward P/E ratio of 21.5. Its industry sports an average Forward P/E of 21.5, so we one might conclude that Northrop Grumman is trading at a no noticeable deviation comparatively.
It is also worth noting that NOC currently has a PEG ratio of 6.44. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.