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Northrop Grumman Corporation (NOC), headquartered in Falls Church, Virginia, is a leading global aerospace and defense company specializing in advanced technologies and solutions for national security, with a market cap of $76.21 billion. Competing with other major defense contractors like Lockheed Martin (LMT), NOC continues to innovate and develop cutting-edge technologies that support global security and defense initiatives.
Companies valued at $10 billion or more are generally classified as "large-cap stocks," and Northrop Grumman rightly fits into this category as a significant player in the aerospace and defense industry. NOC has established a strong market position driven by its innovative products and services tailored for the aerospace, defense, cybersecurity, and space sectors.
NOC shares are trading marginally below their 52-week high of $528.76, which they hit on Sep. 4. Also, the stock has gained 19.1% over the past three months, significantly outperforming the Dow Jones Industrial Average Index’s ($DOWI) 5.2% returns over the same time frame.
In the longer term, NOC is up 12% on a YTD basis, and the shares have gained 24% over the past 52 weeks. The Dow has gained 8.3% in 2024 and 18.1% over the past year.
To confirm the bullish price action, NOC has been trading above its 50-day moving average since late July and its 200-day moving average since early July.
Northrop Grumman’s shares surged 6.4% on Jul. 25 after announcing its better-than-expected Q2 earnings results. The company reported a 7% year-over-year increase in total sales, reaching $10.2 billion and slightly surpassing estimates. This growth was primarily fueled by robust performances in the Aeronautics and Defense segments, underscoring continued strong demand for Northrop Grumman's advanced products and services.
Highlighting the contrast in performance, rival LMT has outperformed NOC and the border index, with a 27.2% gain on a YTD basis.
Given NOC's recent outperformance compared to the Dow, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 18 analysts in coverage. The mean price target is $524.13, which indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari 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.
