The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Investing in companies with low financial strength can lead to permanent capital loss.
- Investing in companies with low financial strength can lead to permanent capital loss.
- The Style Scores are a complementary set of indicators to use alongside the Zacks Rank.
- Northrop Grumman Corporation operates as an aerospace and defense company worldwide.
- Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance.
- The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security.
- Northrop Grumman’s stock is owned by a number of retail and institutional investors.
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. The House of Representatives’ historic vote to remove its speaker will complicate the sector over the next few months. Investing in classified companies has some uncertainties, but it’s not blind investing, as you might think. For a limited time only, there’s money to be made launching large rockets to space — but that could change soon. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries.
This segment also provides airborne multifunction sensors; maritime/land systems and sensors; navigation, targeting, and survivability solutions; and networked information solutions. 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. The company’s Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems in the United States and internationally.
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. Comparing a company’s return on invested capital (ROIC) to its weighted cost of capital (WACC) is another way to evaluate its profitability. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business. 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.
What sector and industry does Northrop Grumman (NOC) operate in?
Shares of companies in the defense sector have surged amidst the continued conflict in the Middle East, adding almost $20 billion in market cap. “History shows” war stocks’ rally immediately after geopolitical shocks generally fall flat, according to Bernstein analysts. Global defense industry expenditures topped $1.9 trillion in 2019, and the amount is growing. The scores are based on the trading styles of Value, Growth, and Momentum. There’s also a VGM Score (‘V’ for Value, ‘G’ for Growth and ‘M’ for Momentum), which combines the weighted average of the individual style scores into one score.
Over the past twelve months, the company had a revenue of $37.90 billion and Earnings Per Share (EPS) of $30.14. Its operating margin is 9.67%, which ranks better than 64.63% of 294 companies in the Aerospace & Defense industry. Overall, GuruFocus ranks the profitability of Northrop Grumman at 9 out of 10, which indicates strong profitability. According to 14 analysts, the average rating for NOC stock is “Buy.” The 12-month stock price forecast is $492.21, which is an increase of 0.42% from the latest price. Northrop Grumman will announce its quarterly financial results in 13 days. Traders should take this into account as the share price often fluctuates around this time period.
Mission systems create and integrate a variety of radar, navigation, and communication systems for avionics, weapons control, and countermeasures on a range of platforms from helicopters to destroyers. Finally, space systems produce satellites, sensors, space structures, and manufacture long-range missiles and rocket motors. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.
Northrop Grumman led the sector, with General Dynamics, Lockheed Martin, and RTX also surging. Defense stocks, such as major military contractors Lockheed Martin (LMT) and RTX Corporation (RTX), are starting the week off in the green as markets compose themselves after the deadly Hamas attacks … Havens such as gold and global bonds jump, while airline stocks slide. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Space is hard, but it’s also big — and probably big enough to hold three competing companies offering space tug services.
Trading & brokers
A quarterly cash dividend of $1.87 per share of Class A Common Stock. The quarterly cash dividend was payable on September 13, 2023 exness broker reviews to stockholders of record on August 25, 2023. Northrop Grumman’s stock is owned by a number of retail and institutional investors.
NOC News Coverage
If the ROIC is higher than the WACC, it indicates that the company is creating value for shareholders. Over the past 12 months, Northrop Grumman’s ROIC was 7.75, while its WACC came in at 5.59. Investing in profitable companies, especially those that have demonstrated consistent profitability over the long term, poses less risk.
Northrop Grumman Corporation operates as an aerospace and defense company worldwide. The company’s Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems in the United States and internationally. Its Defense Systems segment designs, develops, and produces weapons and mission systems. It offers products and services, such as integrated battle management systems, weapons systems and aircraft, and mission systems.
Sign-up to receive the latest news and ratings for Northrop Grumman and its competitors with MarketBeat’s FREE daily newsletter. Northrop Grumman CEO Kathy Warden joins ‘Closing Bell Overtime’ to talk global security, growth in space tech, the nuclear triad and much more. China has decided fxchoice review to apply sanctions against aerospace and defence firm Northrop Grumman Corp and peer Lockheed Martin Corp for providing weapons to Taiwan, the Chinese foreign ministry said on Friday… Defense sector stocks rose Monday, after war broke out between Israel and Hamas this weekend.
Aerospace and Defense
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. Based on this, GuruFocus ranks Northrop Grumman’s financial strength as 6 out of 10, suggesting 12trader forex broker review a fair balance sheet. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance.
The lowdown on some of the top options for investors seeking exposure to the defense industry. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. As an investor, you want to buy stocks with the highest probability of success.