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 easymarkets broker 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.
- 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.
- This segment also provides airborne multifunction sensors; maritime/land systems and sensors; navigation, targeting, and survivability solutions; and networked information solutions.
- The technique has proven to be very useful for finding positive surprises.
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 kraken trading review 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.
Northrop Grumman Analyst Data
It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. 16 Wall Street equities research analysts have issued “buy,” “hold,” and “sell” ratings for Northrop Grumman in the last year. There are currently 1 sell rating, 7 hold ratings and 8 buy ratings for the stock.
- © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
- 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.
- 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.
- 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 …
- Stockholders of record on Monday, August 28th will be given a dividend of $1.87 per share on Wednesday, September 13th.
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.
This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.17% per year. These returns cover a period from January 1, 1988 through September 4, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return.
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 web development careers & degrees 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.
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.
Stocks That Really, Really Need the Defense Bill to Pass
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 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.
Northrop Grumman MarketRank™ Forecast
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.
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 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.
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.
About Northrop Grumman Corporation
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. Sign up to receive the latest news and ratings for NOC and its competitors with MarketBeat’s FREE daily newsletter. To find out the high-quality companies that may deliver above-average returns, please check out GuruFocus High Quality Low Capex Screener. Northrop Grumman is in the Industrials sector and Aerospace & Defense industry.
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.