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Northrop Grumman (NOC) closed the most recent trading day at $541.19, moving +1.2% from the previous trading session. This move outpaced the S&P 500’s daily loss of 0.41%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 6.67%.
Coming into today, shares of the defense contractor had gained 1.88% in the past month. In that same time, the Aerospace sector lost 0.41%, while the S&P 500 lost 4.4%.
Northrop Grumman will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2023. On that day, Northrop Grumman is projected to report earnings of $6.60 per share, which would represent year-over-year growth of 10%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.66 billion, up 11.81% from the year-ago period.
NOC’s full-year Zacks Consensus Estimates are calling for earnings of $24.64 per share and revenue of $36.23 billion. These results would represent year-over-year changes of -3.86% and +1.57%, respectively.
Investors might also notice recent changes to analyst estimates for Northrop Grumman. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. Northrop Grumman is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Northrop Grumman has a Forward P/E ratio of 21.7 right now. This valuation marks a no noticeable deviation compared to its industry’s average Forward P/E of 21.7.
Also, we should mention that NOC has a PEG ratio of 6.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. NOC’s industry had an average PEG ratio of 2.2 as of yesterday’s close.
The Aerospace – Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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