Northrop Grumman Stock Outlook: Is Wall Street Bullish or Bearish?

Valued at a market cap of almost $72 billion, Northrop Grumman Corporation (NOC) is a leading security company that offers a broad portfolio of aerospace and defense technology products. Based in Falls Church, Virginia, the company provides products, systems, and solutions in autonomous systems, cyber, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR), to name a few.

Shares of this aerospace and defense company have lagged behind the broader market over the past 52 weeks. NOC has gained 5.3% over this time frame, while the broader S&P 500 Index ($SPX) has soared 30.6%. Moreover, shares of NOC are up 4.4%, compared to SPX’s 23.6% gain on a YTD basis.

Zooming in further, NOC’s underperformance becomes more evident when compared to the SPDR S&P Aerospace & Defense ETF’s (XAR) 32.6% gain over the past 52 weeks and 21.9% return on a YTD basis.

www.barchart.com

On Oct. 24, shares of NOC jumped 1.4% after its mixed Q3 earnings release. The company reported revenues of $10 billion, which missed the consensus estimates of $10.2 billion, but its adjusted earnings of $7 per share increased 13% from a year ago and surpassed the Wall Street estimates of $6.07. NOC’s earnings surprise, coupled with raised full-year 2024 operating income and adjusted earnings guidance, might have impressed the investors and led to its upward price movement. 

For the current fiscal year, ending in December, analysts expect NOC’s EPS to grow 11.3% year over year to $25.93.The company’s earnings surprise history is promising. It surpassed the consensus estimates in each of the last four quarters.

Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on seven “Strong Buy,” nine “Hold,” and two "Strong Sell” ratings.

www.barchart.com

On Oct. 29, Barclays analyst David Strauss maintained an “Equal-Weight” rating on NOC and raised the price target to $550, which indicates a 12.5% upside from the current levels. 

The mean price target of $567.55 represents a 16.1% upside from NOC’s current price levels. The Street-high price target of $643 suggests an upside potential of 31.6%.

More news from Barchart

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.