Aerospace/defense giant Northrop Grumman broke out of a flat base last Thursday but so far has failed to capitalize on it. Its stock got hit as did most stocks on Monday. Still, it only fell 0.4% Monday while others fell hard amid the market plunge.
The Falls Church, Va.-based commercial and military aircraft maker and supplier got a Relative Strength (RS) Rating hike Tuesday, with a jump from 68 to 77. The upgrade puts it just a few points below a key benchmark. Market research shows that the best stocks typically have an 80 or better RS Rating as they begin their biggest climbs.
See if Northrop Grumman can continue to show renewed price strength and clear that threshold.
Northrop Grumman Stock Rebounded
Northrop Grumman makes a wide variety of aerospace/defense products ranging from gear used to deliver goods to the International Space Station to the iconic B2 Spirit stealth bomber and cybersecurity products, among others.
Northrop Grumman stock dipped below its 50-day and 200-day moving average lines in June but has since rebounded and trades north of both. Its Relative Strength Line fell in mid-July but also has rebounded. Year to date, Northrop Grumman stock is up about 5%.
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While its sales growth rate fell last quarter from 9% to 7%, or $10.2 billion, earnings grew 14%, up from 9% growth in the prior report, to $5.65 a share.
Hit Buy Zone, Retreated. Ready To Run Again?
Northrop Grumman stock is near a buy zone after breaking out past a 490.60 buy point in a 13-week flat base on Friday. The proper buying range is up to 5% above the initial entry. It traded around 49o Tuesday afternoon, down fractionally for the day and up about 17% from a June 14 low.
Northrop Grumman stock holds the No. 18 rank among its peers in the Aerospace/Defense industry group. Heico and Howmet Aerospace are among the top 5 highly rated stocks in the group.
IBD's proprietary Relative Strength Rating tracks share price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
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