Northrop Grumman (NOC) closed at $476.95 in the latest trading session, marking a -0.7% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.07%. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 0.03%.
Heading into today, shares of the defense contractor had gained 0.48% over the past month, outpacing the Aerospace sector's loss of 3.77% and the S&P 500's loss of 3.49% in that time.
Investors will be hoping for strength from Northrop Grumman as it approaches its next earnings release. The company is expected to report EPS of $6.13, down 7.54% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.14 billion, up 4.8% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.76 per share and revenue of $36.35 billion. These totals would mark changes of -3.39% and +1.92%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Northrop Grumman. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Northrop Grumman currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Northrop Grumman currently has a Forward P/E ratio of 19.4. For comparison, its industry has an average Forward P/E of 18.73, which means Northrop Grumman is trading at a premium to the group.
Investors should also note that NOC has a PEG ratio of 8.86 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 43% 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 Corporation (NOC) : Free Stock Analysis Report
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