NOC stock: buy or sell?
August 19th, 2019
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-8-6||Morgan Stanley||Equal Weight||Overweight|
|2019-7-25||Credit Suisse Group||n/a||Outperform|
|2019-7-25||Bank of America||n/a||Buy|
|2019-7-10||Robert W. Baird||Market Perform||Outperform|
|2019-6-14||Morgan Stanley||n/a||Equal Weight|
|2019-2-13||Morgan Stanley||Equal Weight||Equal Weight|
|2019-2-1||Goldman Sachs Group||Conviction-Buy||Buy|
|2019-2-1||Bank of America||Buy||Buy|
|2019-1-14||Credit Suisse Group||Neutral||Outperform|
NOC stock analysis
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.
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 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 $346.50Predicting 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-7-25||Credit Suisse Group||Reiterates||$364.00||$385.00||5.8%|
|2019-7-25||Bank of America||Raises Target||$355.00||$405.00||14.1%|
|2019-7-10||Robert W. Baird||Reiterates||$300.00||$364.00||21.3%|
|2019-6-14||Morgan Stanley||Raises Target||$308.00||$335.00||8.8%|
|2019-4-25||UBS Group||Raises Target||$290.00||$300.00||3.4%|
|2019-2-13||Morgan Stanley||Raises Target||$305.00||$308.00||1%|
|2019-2-1||Bank of America||Reiterates||$360.00||$355.00||-1.4%|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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%.
|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 M||4.17%||$2,200 M9.0%||10.55%|
|2017||$26,004 M||6.10%||$2,869 M11.0%||30.41%|
|2018||$30,095 M||15.73%||$3,229 M10.7%||12.55%|
|TTM||$31,549 M||4.83%||$3,353 M10.6%||3.84%|
Quarterly financial resultsNorthrop 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.
|2017-Q2||$6,380 M||-||$552 M8.7%||-|
|2017-Q3||$6,530 M||2.35%||$645 M9.9%||16.85%|
|2017-Q4||$6,351 M||-2.74%||$167 M2.6%||-74.11%|
|2018-Q1||$6,735 M||6.05%||$739 M11.0%||342.51%|
|2018-Q2||$7,119 M||5.70%||$689 M9.7%||-6.77%|
|2018-Q3||$8,085 M||13.57%||$1,144 M14.1%||66.04%|
|2018-Q4||$8,156 M||0.88%||$657 M8.1%||-42.57%|
|2019-Q1||$8,189 M||0.40%||$863 M10.5%||31.35%|
Northrop Grumman ownershipWhen 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:
|Market cap||$62.8 B||$192.5 B||$54.2 B||$2.0 B||$0.0 M|
|Total shares||169.8 M||582.6 M||288.9 M||103.5 M||0.0 M|
|Float shares||156.4 M||562.0 M||277.4 M||103.3 M||0.0 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 selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Monday, August 19th, 2019|
|Day range||$369.70 - $372.53|
|Average true range||$9.22|
|50d mov avg||$334.00|
|100d mov avg||$312.42|
|200d mov avg||$289.47|
Northrop Grumman performancePerformance 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:
|KTOSKratos Defense & ...||-4.93%||12.68%||47.83%|
Northrop Grumman competitorsOne 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.
- Boeing (BA)
- General Dynamics (GD)
- Kratos Defense & Security Solutions (KTOS)
- L3 Technologies (LLL)
- Lockheed Martin (LMT)
- Raytheon (RTN)
- United Technologies (UTX)
Latest NOC stock news
- InvestorPlace3 Big Stock Charts for Friday: Simon Property Group, Cardinal Health and Northrop GrummanMay 10, 2019
- Seeking AlphaQ1 2019 Post-Earnings Analysis - Northrop GrummanApril 25, 2019
- Seeking AlphaAnticipating Q1 Earnings - Northrop GrummanApril 15, 2019
- Seeking AlphaNorthrop Grumman: Buy This Military Company For Total Return And IncomeFebruary 19, 2019
- Seeking AlphaDeep Space Acquisition - Initiating Coverage On Northrop GrummanFebruary 13, 2019