Falls Church, Virginia-based Northrop Grumman Corporation (NOC) is an aerospace and defense technology company with a market cap of $102.8 billion. It provides products such as stealth aircraft, autonomous systems, missile defense solutions, radar and cybersecurity technologies, and space satellites and launch systems.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and NOC fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the aerospace & defense industry. The company is heavily investing in Digital Engineering, which has allowed it to design and test new systems in virtual environments before physical prototyping.
This aerospace and defense giant is currently trading 2.8% below its 52-week high of $745.55, reached on Feb. 19. Shares of NOC have surged 27.7% over the past three months, outperforming the State Street Industrial Select Sector SPDR ETF’s (XLI) 15.9% uptick during the same time frame.
Moreover, on a YTD basis, shares of NOC are up 27%, compared to XLI’s 14.2% rise. In the longer term, NOC has soared 57.5% over the past 52 weeks, outpacing XLI’s 31.7% gain over the same time frame.
To confirm its bullish trend, NOC has been trading above its 200-day moving average since mid-June, with slight fluctuations, and has remained above its 50-day moving average since mid-December.
On Jan. 27, shares of NOC rose 2.7% after the company reported better-than-expected fourth-quarter results. Driven by solid revenue growth across all reporting segments, its net sales climbed 9.6% year over year to $11.7 billion, slightly exceeding consensus estimates. Additionally, supported by strong operating income growth in its aeronautics, mission, and space systems divisions, adjusted EPS came in at $7.23, up 13.1% compared to the prior-year quarter and 3.3% above analyst forecasts.
NOC has outperformed its rival, Lockheed Martin Corporation (LMT), which surged 47.4% over the past 52 weeks. However, it has lagged behind LMT’s 36.1% rise on a YTD basis.
Looking at NOC’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 22 analysts covering it, and the mean price target of $741.80 suggests a 2.4% premium to its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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