Is Northrop Grumman Stock a Good Investment?
Northrop Grumman Investment Advice | NOC |
- Examine Northrop Grumman's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Northrop Grumman's leadership team and their track record. Good management can help Northrop Grumman navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Aerospace & Defense space and any emerging trends that could impact Northrop Grumman's business and its evolving consumer preferences.
- Compare Northrop Grumman's performance and market position to its competitors. Analyze how Northrop Grumman is positioned in terms of product offerings, innovation, and market share.
- Check if Northrop Grumman pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Northrop Grumman's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Northrop Grumman stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Northrop Grumman is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Northrop Grumman Stock
Researching Northrop Grumman's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 83.0% of the company shares are owned by institutional investors. The book value of Northrop Grumman was now reported as 101.14. The company has Price/Earnings To Growth (PEG) ratio of 0.85. Northrop Grumman recorded earning per share (EPS) of 16.24. The entity last dividend was issued on the 2nd of December 2024. The firm had 10000:9035 split on the 31st of March 2011.
To determine if Northrop Grumman is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Northrop Grumman's research are outlined below:
| Northrop Grumman generated a negative expected return over the last 90 days | |
| Over 83.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Boeing Secures a 1.7B Contract to Deliver P-8A Poseidon Aircraft |
Northrop Grumman Quarterly Gross Profit |
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Northrop Grumman uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Northrop Grumman. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Northrop Grumman's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 25th of April 2024 Upcoming Quarterly Report | View | |
| 25th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 23rd of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Northrop Grumman's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Northrop Grumman's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2006-01-24 | 2005-12-31 | 0.83 | 0.92 | 0.09 | 10 | ||
2002-04-17 | 2002-03-31 | 0.55 | 0.64 | 0.09 | 16 | ||
1997-07-16 | 1997-06-30 | 0.77 | 0.86 | 0.09 | 11 | ||
2003-10-29 | 2003-09-30 | 0.51 | 0.61 | 0.1 | 19 | ||
1999-10-20 | 1999-09-30 | 0.82 | 0.92 | 0.1 | 12 | ||
1999-04-21 | 1999-03-31 | 0.66 | 0.76 | 0.1 | 15 | ||
1997-04-16 | 1997-03-31 | 0.62 | 0.72 | 0.1 | 16 | ||
2005-10-25 | 2005-09-30 | 0.69 | 0.8 | 0.11 | 15 |
Know Northrop Grumman's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Northrop Grumman is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Northrop Grumman backward and forwards among themselves. Northrop Grumman's institutional investor refers to the entity that pools money to purchase Northrop Grumman's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Massachusetts Financial Services Company | 2024-09-30 | 2.4 M | Sanders Capital, Llc | 2024-09-30 | 2.3 M | Capital World Investors | 2024-09-30 | 1.9 M | Ameriprise Financial Inc | 2024-06-30 | 1.7 M | Amvescap Plc. | 2024-06-30 | 1.3 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.2 M | Northern Trust Corp | 2024-09-30 | 1.1 M | Legal & General Group Plc | 2024-06-30 | 1.1 M | T. Rowe Price Associates, Inc. | 2024-06-30 | 977 K | State Street Corp | 2024-06-30 | 14 M | Vanguard Group Inc | 2024-09-30 | 12.6 M |
Northrop Grumman's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 71.34 B.Market Cap |
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Northrop Grumman's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.07 | |
| Return On Capital Employed | 0.07 | 0.10 | |
| Return On Assets | 0.04 | 0.04 | |
| Return On Equity | 0.14 | 0.13 |
Determining Northrop Grumman's profitability involves analyzing its financial statements and using various financial metrics to determine if Northrop Grumman is a good buy. For example, gross profit margin measures Northrop Grumman's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Northrop Grumman's profitability and make more informed investment decisions.
Northrop Grumman's Earnings Breakdown by Geography
Please note, the presentation of Northrop Grumman's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Northrop Grumman's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Northrop Grumman's management manipulating its earnings.
Evaluate Northrop Grumman's management efficiency
Northrop Grumman has Return on Asset of 0.0416 % which means that on every $100 spent on assets, it made $0.0416 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1548 %, implying that it generated $0.1548 on every 100 dollars invested. Northrop Grumman's management efficiency ratios could be used to measure how well Northrop Grumman manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Capital Employed is expected to grow to 0.1, whereas Return On Tangible Assets are forecasted to decline to 0.07. At present, Northrop Grumman's Deferred Long Term Asset Charges is projected to decrease significantly based on the last few years of reporting. The current year's Fixed Asset Turnover is expected to grow to 4.69, whereas Total Assets are forecasted to decline to about 24.1 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 97.66 | 102.54 | |
| Tangible Book Value Per Share | (19.98) | (20.98) | |
| Enterprise Value Over EBITDA | 19.74 | 20.73 | |
| Price Book Value Ratio | 4.79 | 5.03 | |
| Enterprise Value Multiple | 19.74 | 20.73 | |
| Price Fair Value | 4.79 | 5.03 | |
| Enterprise Value | 56.1 B | 58.9 B |
The management team at Northrop Grumman has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Dividend Yield 0.0168 | Forward Dividend Yield 0.0168 | Forward Dividend Rate 8.24 | Beta 0.346 |
Basic technical analysis of Northrop Stock
As of the 30th of November, Northrop Grumman secures the Standard Deviation of 1.09, risk adjusted performance of (0.04), and Mean Deviation of 0.8094. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Northrop Grumman, as well as the relationship between them.Northrop Grumman's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Northrop Grumman insiders, such as employees or executives, is commonly permitted as long as it does not rely on Northrop Grumman's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Northrop Grumman insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Graham Robinson over six months ago Acquisition by Graham Robinson of tradable shares of Northrop Grumman at 478.66 subject to Rule 16b-3 | ||
Kathy Warden over a year ago Exercise or conversion by Kathy Warden of 11453 shares of Northrop Grumman subject to Rule 16b-3 |
Northrop Grumman's Outstanding Corporate Bonds
Northrop Grumman issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Northrop Grumman uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Northrop bonds can be classified according to their maturity, which is the date when Northrop Grumman has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| NORTHROP GRUMMAN P Corp BondUS666807AQ52 | View | |
| NORTHROP GRUMMAN P Corp BondUS666807BS00 | View | |
| US666807BT82 Corp BondUS666807BT82 | View | |
| NORTHROP GRUMMAN P Corp BondUS666807BM30 | View | |
| NORTHROP GRUMMAN P Corp BondUS666807BN13 | View | |
| NORTHROP GRUMMAN P Corp BondUS666807BP60 | View | |
| NORTHROP GRUMMAN P Corp BondUS666807BH45 | View |
Understand Northrop Grumman's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Northrop Grumman's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (0.14) | |||
| Mean Deviation | 0.8094 | |||
| Coefficient Of Variation | (1,801) | |||
| Standard Deviation | 1.09 | |||
| Variance | 1.18 | |||
| Information Ratio | (0.18) | |||
| Jensen Alpha | (0.13) | |||
| Total Risk Alpha | (0.25) | |||
| Treynor Ratio | (0.15) | |||
| Maximum Drawdown | 6.85 | |||
| Value At Risk | (1.78) | |||
| Potential Upside | 1.62 | |||
| Skewness | (0.37) | |||
| Kurtosis | 1.94 |
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (0.14) | |||
| Mean Deviation | 0.8094 | |||
| Coefficient Of Variation | (1,801) | |||
| Standard Deviation | 1.09 | |||
| Variance | 1.18 | |||
| Information Ratio | (0.18) | |||
| Jensen Alpha | (0.13) | |||
| Total Risk Alpha | (0.25) | |||
| Treynor Ratio | (0.15) | |||
| Maximum Drawdown | 6.85 | |||
| Value At Risk | (1.78) | |||
| Potential Upside | 1.62 | |||
| Skewness | (0.37) | |||
| Kurtosis | 1.94 |
Consider Northrop Grumman's intraday indicators
Northrop Grumman intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Northrop Grumman stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Northrop Grumman Corporate Filings
F4 | 13th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 24th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 2nd of October 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Northrop Stock media impact
Far too much social signal, news, headlines, and media speculation about Northrop Grumman that are available to investors today. That information is available publicly through Northrop media outlets and privately through word of mouth or via Northrop internal channels. However, regardless of the origin, that massive amount of Northrop data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Northrop Grumman news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Northrop Grumman relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Northrop Grumman's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Northrop Grumman alpha.
Northrop Grumman Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Northrop Grumman can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Northrop Grumman Historical Investor Sentiment
Investor biases related to Northrop Grumman's public news can be used to forecast risks associated with an investment in Northrop. The trend in average sentiment can be used to explain how an investor holding Northrop can time the market purely based on public headlines and social activities around Northrop Grumman. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Northrop Grumman's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Northrop Grumman and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Northrop Grumman news discussions. The higher the estimate score, the more favorable the investor's outlook on Northrop Grumman.
Northrop Grumman Corporate Directors
| Thomas Schoewe | Independent Director | Profile | |
| Marianne Brown | Independent Director | Profile | |
| Karl Krapek | Independent Director | Profile | |
| Madeleine Kleiner | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Northrop Grumman. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. For information on how to trade Northrop Stock refer to our How to Trade Northrop Stock guide.You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Northrop Grumman. If investors know Northrop will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Northrop Grumman listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.133 | Dividend Share 7.86 | Earnings Share 16.24 | Revenue Per Share 276.412 | Quarterly Revenue Growth 0.023 |
The market value of Northrop Grumman is measured differently than its book value, which is the value of Northrop that is recorded on the company's balance sheet. Investors also form their own opinion of Northrop Grumman's value that differs from its market value or its book value, called intrinsic value, which is Northrop Grumman's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Northrop Grumman's market value can be influenced by many factors that don't directly affect Northrop Grumman's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Northrop Grumman's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Northrop Grumman is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northrop Grumman's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.