Northrop Grumman Stock Forecast, Price & News NYSE:NOC
NOC’s beta can be found in Trading Information at the top of this page. A stock’s beta measures how closely tied its price movements have been to the performance of the overall market. Morningstar analysts hand-select direct competitors or comparable companies to
provide context on the strength and durability of NOC’s
competitive advantage. biden should finish trumps trilateral trade diplomacy The company is scheduled to release its next quarterly earnings announcement on Thursday, October 26th 2023. MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. Using the company’s expected 2028 free cash flow yield, the stock is trading at 17.9x free cash flow.
- The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets.
- While it needs to be seen how bad things get in the Middle East, we’re not at a point where defense spending has to be a priority, even if it’s just to modernize existing equipment.
- Northrop Grumman is a diversified defense contractor providing aeronautics, defense, mission, and space systems.
Northrop Grumman’s stock is owned by a number of institutional and retail investors. Use these ten stocks to generate a safe and reliable source of investment income. Despite its current valuation premium, I see NOC as a promising investment with potential for substantial returns in the future. The company has gotten one downside revision and one upside revision over the past four weeks. International opportunities, especially in Europe, are expected to further strengthen growth.
Its Space Systems segment offers satellites and payloads; ground systems; missile defense systems and interceptors; launch vehicles and related propulsion systems; and strategic missiles. The company was founded in 1939 and is based in Falls Church, Virginia. Northrop Grumman is a diversified defense contractor providing aeronautics, defense, mission, and space systems. The company’s aerospace segment creates the fuselage for the massive F-35 program and produces autonomous and piloted aircraft such as Global Hawk drones and the new B-21 bomber.
Shares of Lockheed Martin, Northrop Grumman, RTX and General Dynamics all rose as investors speculate how the U.S. made aid its ally which could include ordering more weapons. Israeli Prime Minister Benjamin london session forex pairs Netanyahu said in a video on Saturday that Israel is “at war” and called for a massive military response. Additionally, on Sunday, Netanyahu told President Biden “We have to go in,” according to Axios.
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- International opportunities, especially in Europe, are expected to further strengthen growth.
Northrop mentioned a focus on returning 100% of free cash flow to investors this year, including share repurchases and dividend increases. As I have mentioned in almost all of my defense-focused articles, I am not buying defense companies to benefit from war. The opposite is true, as I invest in defense companies with high-tech capabilities that keep people safe and prevent war in the first place. The fiscal 2024 National Defense Authorization Act is asking for a 3.3% rise in U.S. defense spending to $886.3 billion, while analysts at Bank of America predict the U.S.
While the stock is trading at the highest multiple among its peers, it is expected to erase that premium over the next four years. For example, the company highlighted its strong sales growth of 7% year-to-date, with a projected 5-6% sales growth for the year at the midpoint of its guide. With everything said in this article so far, now is a great point to dive into what the company said during last month’s Morgan Stanley Laguna Conference, which was attended by Northrop CEO Kathy Warden.
Israel-Hamas War to Change Sentiment on Defense Stocks
The F/A-XX is going to be the successor of the F/A-18, which can often be found on aircraft carriers as the backbone of the Navy’s air capabilities. Northrop is competing with Lockheed and Boeing (BA), which is building the current F/A-18 fighter. Warden highlighted their involvement in programs like F/A-XX and collaborative combat aircraft (“CCA”) as potential growth areas. Instead of focusing on the NGAD, Northrop Grumman used the aforementioned conference to express confidence in various opportunities within the aerospace and defense sector.
Northrop Grumman (NOC)
One of the most important factors in the valuation of a company is growth. Companies that grow faster create more value for shareholders, especially if that growth is profitable. The average annual revenue growth of Northrop Grumman is 5.7%, which ranks better than 61.36% of 264 companies in the Aerospace & Defense industry. The 3-year average EBITDA growth is 24.6%, which ranks better than 81.74% of 230 companies in the Aerospace & Defense industry. Investing in profitable companies, especially those that have demonstrated consistent profitability over the long term, poses less risk. Over the past twelve months, the company had a revenue of $37.90 billion and Earnings Per Share (EPS) of $30.14.
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Stockholders of record on Monday, August 28th will be given a dividend of $1.87 per share on Wednesday, September 13th. This represents a $7.48 annualized dividend and a dividend yield of 1.53%. The company’s strong financial performance, marked by consistent buybacks and a robust dividend growth strategy, underpins my confidence in its long-term potential. Given NOC’s growth trajectory, there’s no point in using the company’s current valuation. After all, UBS data showed that the company is currently trading at a huge premium. They also noted the potential for growth and competitive advantage in autonomous aircraft, leveraging the company’s expertise and experience in the field.
Northrop Grumman Corp. stock outperforms market on strong trading day
610 employees have rated Northrop Grumman Chief Executive Officer Kathy Warden on Glassdoor.com. Kathy Warden has an approval rating of 85% among the company’s employees. Sign-up to receive the latest news and ratings for Northrop Grumman and its competitors with MarketBeat’s FREE daily newsletter. NOC’s innovative approach to defense, focusing on high-tech capabilities, positions it as a vital player in ensuring NATO safety and security. My substantial investment in NOC, making it my second-largest portfolio holding, reflects my confidence in the company’s future.
It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or forex broker reviews qualitative information. Investing in companies with low financial strength can lead to permanent capital loss. Therefore, it’s crucial to review a company’s financial strength before buying shares. Northrop Grumman has a cash-to-debt ratio of 0.22, which ranks worse than 70.31% of 293 companies in the Aerospace & Defense industry.
NOC Media Sentiment
The strong backlog and international contracts provide a robust foundation for Northrop Grumman’s positive outlook. Despite the 3% cap in the Department of Defense (“DoD”) budget, NOC foresees strong growth, especially in areas like nuclear modernization and space programs. Over the past ten years, NOC shares have returned 470%, beating the S&P 500 by a huge margin. However, it needs to be said that both L3Harris Technologies (LHX) and RTX (RTX) went through major mergers over the past four years.
16 Wall Street research analysts have issued “buy,” “hold,” and “sell” ratings for Northrop Grumman in the last twelve months. There are currently 1 sell rating, 7 hold ratings and 8 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should “hold” NOC shares. A hold rating indicates that analysts believe investors should maintain any existing positions they have in NOC, but not buy additional shares or sell existing shares.