NOC stock: buy or sell?

NOC stock price: $370.08 0.59% At close on August 19th, 2019

Updated on:
August 19th, 2019

3

After topping to all time highs on Tuesday, Northrop Grumman inched 0.59% to $370.08. With Monday, it's been 3 climbing days in a row, adding $8.66 or 2.34%.

Northrop Grumman Corporation operates as a security company for government and commercial customers worldwide. It provides products, systems, and solutions in autonomous systems; cyber; command, control, communications and computers, intelligence, surveillance, and reconnaissance (C4ISR); strike; and logistics and modernization.

Should I buy NOC stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading strategy that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Northrop Grumman stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Northrop Grumman stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 15 ratings published for NOC stock in the last month.

The general sentiment of these ratings is bullish for NOC stock, with 10 positive ratings.
Is NOC a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-6Morgan StanleyEqual WeightOverweight
2019-7-25Credit Suisse Groupn/aOutperform
2019-7-25Bank of American/aBuy
2019-7-10Robert W. BairdMarket PerformOutperform
2019-6-14Morgan Stanleyn/aEqual Weight
2019-5-16Barclaysn/aOverweight
2019-4-5Susquehanna BancsharesNeutralPositive
2019-4-25UBS GroupNeutralNeutral
2019-2-13Morgan StanleyEqual WeightEqual Weight
2019-2-1Goldman Sachs GroupConviction-BuyBuy
2019-2-1Bank of AmericaBuyBuy
2019-2-1Argusn/aBuy
2019-1-31Cowenn/aHold
2019-1-14Credit Suisse GroupNeutralOutperform
2019-1-14CitigroupBuyBuy

NOC stock analysis

Daily outlook

After marking all time highs on Tuesday, Northrop Grumman inched 0.59% to $370.08.

Northrop Grumman inched 0.59% today to $370.08 after reaching all time highs on Tuesday. Since last June when SMA100d and SMA200d crossed up, NOC price gained $66.83 per share (22.04%). Since last April when NOC stock price broke up the SMA200d line, it gained $92.08 (33.12%). From a daily perspective, NOC is in a short term uptrend after plotting its last bottom ($334.96, on August 5th) higher than the previous bottom, and its last top ($377.34, on Tuesday) also over the previous top. Now trading in between its last bottom and last top NOC might consolidate in a plain range, waiting to break out over $377.34 or down under $334.96. On Tuesday, NOC hit a new all time high, pushing higher than on Aug/9 tops. Check different trading setups that use ATHs as triggers.

NOC stock chart (daily)

Weekly outlook

Northrop Grumman shares gained 0.59% this week, ending at $370.08. Early August NOC climbed an exceptional 7.93% in just one week.

Northrop Grumman stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, NOC might consolidate in a flat-base, waiting to break out over or down under . Not so far away is the last all-time high Northrop Grumman marked last week. Late May, SMA20w and SMA40w crossed up triggering a rise of 21.19%. Since early April when NOC stock price broke up the SMA40w line, it gained $94.96 (34.52%).

NOC stock chart (weekly)

NOC stock price history

NOC IPO was on December 31st, 1981 at $2.56 per share1. Since then, NOC stock grew a 14,356.30%, with an average of 388.00% per year. If you had invested right after NOC's IPO a $1,000 in NOC stock in 1981, it would worth $143,563.00 today.

1: Adjusted price after possible price splits or reverse-splits.

NOC stock historical price chart

NOC stock reached all-time highs on Tuesday with a price of $377.34.

NOC stock price target is $346.50

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 12 price predictions for Northrop Grumman stock:
NOC stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-6Morgan StanleyUpgrades$335.00$418.0024.8%
2019-7-25Credit Suisse GroupReiterates$364.00$385.005.8%
2019-7-25Bank of AmericaRaises Target$355.00$405.0014.1%
2019-7-10Robert W. BairdReiterates$300.00$364.0021.3%
2019-6-14Morgan StanleyRaises Target$308.00$335.008.8%
2019-5-16BarclaysRaises Target$325.00$340.004.6%
2019-4-5Susquehanna BancsharesUpgradesn/a$315.00-
2019-4-25UBS GroupRaises Target$290.00$300.003.4%
2019-2-13Morgan StanleyRaises Target$305.00$308.001%
2019-2-1Bank of AmericaReiterates$360.00$355.00-1.4%
2019-1-31CowenReiteratesn/a$300.00-
2019-1-14CitigroupLowers Target$350.00$333.00-4.9%
(in average)$329.20$346.505.0%
Moving in a range from $418.00 and $300.00, the price forecast for Northrop Grumman stock is $346.50. In average, analysts' outlook on NOC price target is positive, improving the forecast by a 5.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when Northrop Grumman posted its last earnings report, it boosted a super good 31.38%. Unfortunately, reported EPS is not yet available in our database.
NOC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a3.15n/a
2017-Q32017-10-252.923.6826.0%
2017-Q42018-01-252.742.822.9%
2018-Q12018-04-253.634.2116.0%
2018-Q22018-07-253.833.932.6%
2018-Q32018-10-244.356.5450.3%
2018-Q42019-01-314.454.9310.8%
2019-Q12019-04-234.58n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Northrop Grumman annual sales rocketed an astounding 15.73% to $30,095.00 M dollars from $26,004.00 marked in 2017. On the other hand, its income margin (compared to sales) stayed constant to 10.73%, that is $3,229.00 million.

Northrop Grumman presents anual results in December, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Northrop Grumman TTM sales up to March 2019 were $31,549.00 and earnings $3,353.00 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Northrop Grumman business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, raised a decent 4.83%. On the other hand, profit margin (net income/sales) stayed constant at 10.73%.

NOC annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$24,660 M-$1,950 M7.9%-
2014$23,979 M-2.76%$2,069 M8.6%6.10%
2015$23,526 M-1.89%$1,990 M8.5%-3.82%
2016$24,508 M4.17%$2,200 M9.0%10.55%
2017$26,004 M6.10%$2,869 M11.0%30.41%
2018$30,095 M15.73%$3,229 M10.7%12.55%
TTM $31,549 M4.83%$3,353 M10.6%3.84%

Quarterly financial results

Northrop Grumman posted $8,189.00 M in sales for 2019-Q1, a 0.40% improvement compared to previous quarter. Reported quarter earnings marked $863.00 million with a profit margin of 10.54%. Profit margin stepped up a 2.48% compared to previous quarter when profit margin was 8.06%. When comparing revenues to same quarter last year, Northrop Grumman sales marked a dazzling gain and skyrocketed a 21.59%. Looking back to recent quarterly results, Northrop Grumman posted 5 negative quarters in a row.
NOC quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$6,380 M-$552 M8.7%-
2017-Q3$6,530 M2.35%$645 M9.9%16.85%
2017-Q4$6,351 M-2.74%$167 M2.6%-74.11%
2018-Q1$6,735 M6.05%$739 M11.0%342.51%
2018-Q2$7,119 M5.70%$689 M9.7%-6.77%
2018-Q3$8,085 M13.57%$1,144 M14.1%66.04%
2018-Q4$8,156 M0.88%$657 M8.1%-42.57%
2019-Q1$8,189 M0.40%$863 M10.5%31.35%

Northrop Grumman ownership

When you are planning to invest in a stock, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Northrop Grumman, 0.54% of all outstanding shares are owned by its staff.

Bearish positions for NOC stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Northrop Grumman:

NOCBAGDKTOSLLL
Market cap$62.8 B$192.5 B$54.2 B$2.0 B$0.0 M
Total shares169.8 M582.6 M288.9 M103.5 M0.0 M
Float shares156.4 M562.0 M277.4 M103.3 M0.0 M
  - Institutional holdings (%)85.3%70.6%87.8%87.6%0.0%
  - Insider holdings (%)0.5%0.1%6.0%2.0%0.0%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

NOC summary

Monday, August 19th, 2019
Open$371.80
Close$370.08
Day range$369.70 - $372.53
Previous close$367.91
Session gain0.59%
Average true range$9.22
50d mov avg$334.00
100d mov avg$312.42
200d mov avg$289.47
Daily patternlt06a
Weekly pattern lt06a

Northrop Grumman performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We compared Northrop Grumman against Boeing, General Dynamics, Kratos Defense & Security Solutions, L3 Technologies, Lockheed Martin, Raytheon and United Technologies in the following table:
Stock3m6m12m
NOCNorthrop Grumman19.10%28.73%25.80%
BABoeing-6.34%-19.99%-2.52%
GDGeneral Dynamics15.00%9.99%-0.45%
KTOSKratos Defense & ...-4.93%12.68%47.83%
LLLL3 Technologies19.23%45.97%29.50%
LMTLockheed Martin12.26%24.39%19.11%
RTNRaytheon0.06%-2.98%-8.62%
UTXUnited Technologi...-3.05%0.25%-2.82%

Northrop Grumman competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for Northrop Grumman. We selected 7 companies as Northrop Grumman competitors as they are in the same industry or have similar market objectives.

Latest NOC stock news