NOC stock: buy or sell?

NOC stock price: $344.76 0.10% At close on December 6th, 2019

Updated on:
December 6th, 2019

3

Shares of Northrop Grumman closed on Dec/6 at $344.76 and stayed stable a neutral 0.10%. Counting December 6th, it's been 4 green days in a row, gaining $3.03 or 0.86%.

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. Following a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Northrop Grumman stock doesn't match any of these trading strategies, so our recommendation is not to buy.

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?

Banks and financial institutions publish stock ratings everyday. At Stocks2.com, we gathered 12 ratings published for NOC stock in the last month.

The general sentiment of these ratings is bullish for NOC stock, with 8 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

NOC stock analysis

Daily outlook

Shares of Northrop Grumman closed on Dec/6 at $344.76 and stayed constant a neutral 0.10%.

Northrop Grumman shares stayed stable 0.10% to $344.76 on Dec 6th. Since price and SMA100d lines crossed down on November 19th, NOC fell $-10.61 per share (-2.99%). On September, NOC hit new all time highs, pushing higher previous ATH of $379.04 recorded on September. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

NOC stock chart (daily)

Weekly outlook

Northrop Grumman ended this week at $344.76 and slightly fell a rough -1.99%.

Northrop Grumman is in a glaring downtrend, marking successive declining peaks and bottoms. Now is trading in between the - range. There is an opportunity to rebound and reverse this situation if price can hold above the level. Not so far away is the last all-time high Northrop Grumman marked late September. Late May, SMA20w and SMA40w crossed up triggering a rise of 13.73%. Since early April when NOC stock price broke up the SMA40w line, it gained $71.65 (26.23%).

NOC stock chart (weekly)

NOC stock price history

NOC stock went public on December 31st, 1981 with a price of $1.211. Since then, NOC stock surged a 28,392.60%, with a yearly average of 767.40%. If you had invested right after NOC's IPO a $1,000 in NOC stock in 1981, it would worth $283,926.00 today.

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

NOC stock historical price chart

NOC stock reached all-time highs on September with a price of $382.45.

NOC stock price target is $352.50

How much a stock will be priced tomorrow or next week is quite unpredictable 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. We found 10 price targets for NOC stock released in the last 30 days:
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%
(in average)$326.90$352.508.0%
The price forecast for Northrop Grumman stock is $352.50, moving in a range between $418.00 and $300.00. In average, analysts' outlook on NOC price target is positive, increasing the target by a 8.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After publishing its last earnings report on April, Northrop Grumman . As soon as we get its posted EPS from the earnings report, we will update this review.
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 turnover climbed a super good 15.73% to $30,095.00 million dollars from $26,004.00 marked in 2017. When comparing 2018 vs 2017, in contrary, profit margin (that is, the net income divided by revenues) remained steady a -0.30% to 10.73%.

To have an up to date picture of the financial situation of Northrop Grumman, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Northrop Grumman TTM sales up to March 2019 were $31,549.00 and earnings were $3,353.00 million dollars. When comparing this TTM figures with the last reported annuality, we can review Northrop Grumman business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, inched a decent 4.83%. Nevertheless, profit margin (net income/revenues) stayed stable 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 reported $8,189.00 million in revenues for 2019-Q1, a 0.40% up compared to previous quarter. Reported quarter income 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 turnover to same quarter last year, Northrop Grumman sales marked an outstanding increase and boosted 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 buy a company, it's always worth to review 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.

For a better context understanding, the following table shows ownership data compared to other related stocks:

NOCBAGDKTOSLLL
Market cap$58.1 B$199.3 B$53.1 B$1.8 B$0.0 M
Total shares168.5 M562.8 M289.3 M106.3 M0.0 M
Float shares167.8 M528.7 M257.2 M103.9 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

Friday, December 6th, 2019
Open$346.10
Close$344.76
Day range$344.32 - $348.15
Previous close$344.41
Session gain0.10%
Average true range$4.85
50d mov avg$353.30
100d mov avg$355.79
200d mov avg$324.31
Daily pattern
Weekly pattern lt02a

Northrop Grumman performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For Northrop Grumman, the benchmark is made against Boeing, General Dynamics, Kratos Defense & Security Solutions, L3 Technologies, Lockheed Martin, Raytheon and United Technologies.
Stock3m6m12m
NOCNorthrop Grumman-5.90%9.12%35.99%
BABoeing-1.88%1.32%12.08%
GDGeneral Dynamics-4.18%6.71%12.22%
KTOSKratos Defense & ...-7.35%-22.25%27.57%
LLLL3 Technologies19.23%45.97%29.50%
LMTLockheed Martin0.69%10.20%39.05%
RTNRaytheon14.60%18.05%34.37%
UTXUnited Technologi...10.49%12.45%25.84%

Northrop Grumman competitors

We selected a few stocks to conform a list of Northrop Grumman competitors to watch if you are interested in investing in NOC:

Latest NOC stock news