How Do Analysts See Northrop Grumman Corporation (NOC) Performing In Next 12 Months?
Based on the latest analyst predictions, Northrop Grumman Corporation (NYSE:NOC) is estimated to sizably grow its earnings by 29.42% in the upcoming three years. At a current EPS of $13.503, this growth rate means shareholders can expect an impending EPS of $17.475. To assess the reasonability of NOC’s earnings growth per share, we should look at its most recent growth rate delivered. Check out our latest analysis for Northrop Grumman
Exciting times ahead?
NOC is covered by 16 analysts who by consensus are expecting earnings to increase from today’s level of $13.503 to $17.475 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 29.42% over the next few years, which is an optimistic outlook in the near term. In the same period we will see the revenue increase from $25,566M to $32,643M and profit is predicted to slightly grow from $2,362M to $3,057M in the next couple of years, growing by 29.42%. Margins are expected to be muted at a single digit rate of 9.02%.
Is this similar growth to the past?
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is highly excessive or whether the company has consistently exhibited strength. NOC’s earnings growth the past couple of years was 53.51% which indicates that the company’s past performance is supportive of a strong continuation. This means NOC has already proven its capacity to grow at a strong rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
Next Steps:
For NOC, I’ve compiled three essential aspects you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is NOC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NOC is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of NOC? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
