Northrop Grumman (NOC) Stock Sinks As Market Gains: Here's Why
Northrop Grumman (NOC) ended the recent trading session at $454.90, demonstrating a -1.33% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.8%. On the other hand, the Dow registered a gain of 0.23%, and the technology-centric Nasdaq increased by 1.14%.
The defense contractor's shares have seen an increase of 3.32% over the last month, surpassing the Aerospace sector's gain of 2.2% and falling behind the S&P 500's gain of 5.2%.
The investment community will be closely monitoring the performance of Northrop Grumman in its forthcoming earnings report. It is anticipated that the company will report an EPS of $5.84, marking a 6.18% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.8 billion, indicating a 5.4% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $24.68 per share and revenue of $41.05 billion, indicating changes of +5.97% and +4.48%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Northrop Grumman. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.5% higher within the past month. As of now, Northrop Grumman holds a Zacks Rank of #3 (Hold).
In terms of valuation, Northrop Grumman is presently being traded at a Forward P/E ratio of 18.68. This valuation marks a premium compared to its industry's average Forward P/E of 17.77.
It is also worth noting that NOC currently has a PEG ratio of 1.85. 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 1.87 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
