U.S. Markets open in 5 hrs 43 mins

Northrop Grumman (NOC) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Northrop Grumman (NOC) closed the most recent trading day at $381.56, moving +1.66% from the previous trading session. This change outpaced the S&P 500's 0.11% gain on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 0.2%.

Coming into today, shares of the defense contractor had gained 8.14% in the past month. In that same time, the Aerospace sector gained 2.17%, while the S&P 500 gained 3.25%.

Wall Street will be looking for positivity from NOC as it approaches its next earnings report date. This is expected to be January 30, 2020. The company is expected to report EPS of $4.78, down 3.04% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.83 billion, up 8.24% from the year-ago period.

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 a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. NOC currently has a Zacks Rank of #3 (Hold).

Digging into valuation, NOC currently has a Forward P/E ratio of 16.33. For comparison, its industry has an average Forward P/E of 18.52, which means NOC is trading at a discount to the group.

Investors should also note that NOC has a PEG ratio of 1.25 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.29 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 81, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
To read this article on Zacks.com click here.