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Northrop Grumman Corporation (NOC), with a market capitalization of $70.2 billion, is a premier global aerospace and defense technology company known for its advanced solutions across air, sea, space, and cyberspace. The Falls Church, Virginia-based company specializes in cutting-edge systems for autonomous operations, cybersecurity, intelligence, surveillance, reconnaissance, and missile defense.
Companies valued at $10 billion or more are generally considered “large-cap” stocks and Northrop Grumman fits this criterion perfectly. With a strong focus on innovation, Northrop Grumman plays a critical role in national security, delivering next-generation technologies that enhance defense capabilities and strategic deterrence worldwide.
However, the defense contractor has retreated 12.7% from 52-week high of $555.57, achieved on Oct. 1. However, over the past three months, shares of Northrop Grumman have edged up 1%, outperforming the SPDR S&P Aerospace & Defense ETF (XAR), which has dropped 3.9% during the same timeframe.
But the stock has struggled to keep pace with broader industry momentum in the longer term. Over the past six months, shares of NOC have dipped 6.7%, compared to XAR’s 5.8% rise. NOC has surged 5.2% over the past year, while XAR has outpaced, returning 17.7%.
Despite recent volatility, NOC has been trading above its 50-day and 200-day moving averages for a couple of trading sessions.
On Mar. 10, Northrop Grumman gained over 4% as defense stocks rally on expectations of higher sales amid rising defense spending by European nations.
In the competitive defense and aerospace industry, NOC lagged behind its rival TransDigm Group Incorporated (TDG), which has gained 13.5% over the past 52 weeks.
Despite the stock’s weak price action over the past year, analysts are moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 20 analysts covering the stock, and the mean price target of $547.86 suggests a premium of 13% to current levels.
