Last Updated: 09 Nov 2024
Executive Summary
Northrop Grumman Corporation (NOC) is a leading American aerospace and defense technology company. The company has a strong financial position with a market capitalization of $77.07 billion and an EBITDA of $4.46 billion. NOC's trailing price-to-earnings (PE) ratio of 32.06 is slightly above the industry average, but its forward PE of 18.9 is attractive. The company's dividend yield of 1.58% is also attractive. Overall, NOC is a well-positioned company with strong fundamentals and attractive valuation metrics.
Company Overview
Northrop Grumman Corporation is an American multinational aerospace and defense technology company. The company is headquartered in Falls Church, Virginia, and employs approximately 90,000 people worldwide. NOC is a leading provider of systems, products, and services for the defense, intelligence, and space markets. The company's products and services include aircraft, missiles, space systems, and electronic warfare systems.
Fundamental Analysis
NOC's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 6.5% over the past five years. NOC's earnings per share (EPS) has also grown at a CAGR of 10.2% over the past five years. The company's profit margin is 5.8%, and its operating margin is 12.9%. NOC's return on assets (ROA) is 4.2%, and its return on equity (ROE) is 15.5%.
Technical Analysis
NOC's stock price has been in a downtrend since early 2023. The stock price has fallen from a high of $555.57 in January 2023 to a low of $416.95 in June 2023. The stock price is currently trading at $528.99. The stock's 50-day moving average is $523.54, and its 200-day moving average is $476.61. The stock's relative strength index (RSI) is 45.7, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
The short-term outlook for NOC is mixed. The stock price is currently trading below its 50-day and 200-day moving averages, which indicates that the stock is in a downtrend. However, the stock's RSI is 45.7, which indicates that the stock is neither overbought nor oversold. This suggests that the stock could be due for a rebound.
Long Term Outlook
The long-term outlook for NOC is positive. The company has a strong financial position and a track record of consistent growth. The company's products and services are in high demand, and the company is well-positioned to benefit from the growing demand for aerospace and defense technology.
Analyst Recommendations
The majority of analysts have a buy or strong buy rating on NOC. The average analyst target price for NOC is $563.67, which represents a potential upside of 6.6% from the current stock price.
