NOC stock: buy or sell?

NOC stock price: $372.02 0.78% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

3

Northrop Grumman closed today at $372.02 and stepped up a slightly good 0.78%.

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?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to choose your own trading plan that fits your character as inversor. At Stocks2.com, we 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 doesn't mean NOC will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Northrop Grumman stock a buy?

Banks and financial institutions publish stock ratings everyday. At Stocks2.com, we gathered 15 ratings published for NOC stock in the last 30 days.

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

Northrop Grumman stepped up a slightly good 0.78% and closed at $372.02.

Northrop Grumman shares stepped up 0.78% to $372.02 today. On June, SMA100d and SMA200d crossed up triggering a rise of 22.68%. From a daily outlook perspective, NOC is drawing an uptrend of rising tops and rising bottoms. Since its last top on August 13th at $377.34, price slid and bounced up back from $359.60. Breaking down under $359.60 would cancel the current uptrend and it might slide further to test lower supports. Note that $377.34 might act as a resistance line. Trading the long side, we should wait to a new breakout over $377.34 to find the next buy point. Since last April when NOC stock price broke up the SMA200d line, it gained $94.02 (33.82%). On August/13, NOC hit new all time highs, pushing higher previous ATH of $374.68 recorded on August/9. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

NOC stock chart (daily)

Weekly outlook

Shares of Northrop Grumman raised a tiny 1.12% this week. Early August NOC rocketed an extraordinary 7.93% in just one week.

Northrop Grumman stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last price record Northrop Grumman marked last week. Late May, SMA20w and SMA40w crossed up triggering a rise of 21.82%. Since price and SMA40w lines crossed up early April, NOC climbed $96.90 (35.22%).

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 14,432.00%, with a yearly average of 390.10%. If you had invested right after NOC's IPO a $1,000 in NOC stock in 1981, it would worth $144,320.00 today.

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

NOC stock historical price chart

NOC stock reached all-time highs on August/13 with a price of $377.34.

NOC stock price target is $346.50

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. 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 12 price forecasts 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%
2019-1-31CowenReiteratesn/a$300.00-
2019-1-14CitigroupLowers Target$350.00$333.00-4.9%
(in average)$329.20$346.505.0%
The price forecast for Northrop Grumman stock is $346.50, moving in a range between $418.00 and $300.00. In average, analysts' outlook on NOC price target is positive, upgrading the prediction by a 5.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After presenting its last earnings report on April, Northrop Grumman climbed an amazing 32.07%. As soon as we get its posted EPS from the earnings report, we will extend 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

Compared to 2017, last anual revenues report draw an astounding growth of 15.73% to $30,095.00 million USD. When comparing 2018 vs 2017, by contrast, profit margin (that is, the net income divided by revenues) stayed stable a -0.30% to 10.73%.

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 income $3,353.00 M USD. When comparing this TTM figures with the last reported annuality, we can review Northrop Grumman business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, stepped up a fine 4.83%. Regarding profit margin, Northrop Grumman stayed constant -0.10% to 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 revenues for 2019-Q1, a 0.40% improvement compared to previous quarter. Reported quarter income marked $863.00 million with a profit margin of 10.54%. Profit margin appreciated 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 an extraordinary increase and rocketed 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 company, it's always worth to overview 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 next table shows ownership data compared to other related stocks:

NOCBAGDKTOSLLL
Market cap$63.2 B$198.1 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

Thursday, August 22nd, 2019
Open$369.50
Close$372.02
Day range$366.58 - $373.48
Previous close$369.14
Session gain0.78%
Average true range$8.40
50d mov avg$337.86
100d mov avg$315.45
200d mov avg$291.02
Daily patternlb03a
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 picked Boeing, General Dynamics, Kratos Defense & Security Solutions, L3 Technologies, Lockheed Martin, Raytheon and United Technologies as the bechmarking frame for Northrop Grumman stock.
Stock3m6m12m
NOCNorthrop Grumman19.72%29.41%26.46%
BABoeing-3.60%-18.86%-0.57%
GDGeneral Dynamics14.98%9.97%-0.47%
KTOSKratos Defense & ...-12.72%8.53%48.71%
LLLL3 Technologies19.23%45.97%29.50%
LMTLockheed Martin13.78%26.42%22.49%
RTNRaytheon4.51%1.34%-4.55%
UTXUnited Technologi...-2.04%1.30%-1.81%

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