NOC stock: buy or sell?

NOC stock price: $339.97 -5.40% At close on February 25th, 2020

Updated on:
February 25th, 2020

2

Northrop Grumman shares collapsed -5.40% to $339.97 today.

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 plan that fits 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, hence 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 doesn't mean NOC will slide 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. Unfortunately, we couldn't detect any rating for NOC stock for the last 30 days.

NOC stock analysis

Daily outlook

Northrop Grumman ended today at $339.97 and collapsed a dreadful -5.40%.

Northrop Grumman collapsed a dreadful -5.40% and closed at $339.97. In this session, Northrop Grumman stock crossed down the SMA200d line. If you are using SMA200d line as stop loss trigger, double check your position in this stock. Since SMA50d and SMA100d crossed up on Jan/30, NOC price slid a -10.83%. On January/30, NOC hit a new all time high, pushing higher than on January/17 tops. Check different trading setups that use ATHs as triggers.

NOC stock chart (daily)

Weekly outlook

Shares of Northrop Grumman ended this week at $339.97 and plunged a hair-raising -6.86%.

Northrop Grumman is now in fresh lows to find new supports after dropping under the support. Not so far away is the last all-time high Northrop Grumman marked late January. This week, Northrop Grumman stock lost the significant level of the 40-weeks moving average. Trading stocks that are under the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support. Since late May 2019 when SMA20w and SMA40w crossed up, NOC price gained $37.92 per share (12.55%).

NOC stock chart (weekly)

NOC stock price history

NOC IPO was on December 31st, 1981 at $1.21 per share1. Since then, NOC stock grew a 27,996.70%, with a yearly average of 736.80%. If you had invested right after NOC's IPO a $1,000 in NOC stock in 1981, it would worth $279,967.00 today.

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

NOC stock historical price chart

NOC stock reached all-time highs on January 30th with a price of $383.61.

NOC stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we have not found any price prediction for Northrop Grumman stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April, when Northrop Grumman posted its last earnings report, it . 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 sales climbed an exceptional 15.73% to $30,095.00 M USD from $26,004.00 marked in 2017. In contrast, its profit margin (compared to revenues) stayed steady to 10.73%, that is $3,229.00 million.

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 income was $3,353.00 M dollars. When comparing 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, grew a nice 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 reported $8,189.00 M in revenues 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 gained 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 super good gain and rocketed a 21.59%. Looking back to recent quarterly results, Northrop Grumman posted 5 positive 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 review its ownership structure.

Northrop Grumman shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.49% of all shares.

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 companies:

NOC
Market cap$57.0 B
Total shares167.6 M
Float shares167.0 M
  - Institutional holdings (%)84.0%
  - Insider holdings (%)0.5%
Shares in short selling0.0%

NOC summary

Tuesday, February 25th, 2020
Open$361.07
Close$339.97
Day range$338.78 - $361.43
Previous close$359.39
Session gain-5.40%
Average true range$7.98
50d mov avg$363.29
100d mov avg$356.92
200d mov avg$346.22
Daily patternlt06c
Weekly pattern lt01c

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 in the following table:
Stock3m6m12m
NOCNorthrop Grumman-3.00%-6.56%20.28%

Northrop Grumman competitors

Unfortunately, we could not find any public company that could be defined as Northrop Grumman competitor. This doesn't mean Northrop Grumman does not have any competitor in the market, it's just we could not detected it.

    Latest NOC stock news