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Northrop Grumman (NOC) has shown a remarkable performance over the past decade, with returns nearing 20% and a solid long-term growth trajectory. The ongoing geopolitical tensions in the Middle East, Ukraine, and China appear to bolster the case for increased defense spending, which may encourage growth for the company. However, opinions among analysts vary; while many appreciate the strong demand for defensive technologies, concerns have been raised about the business's consistency and complex, capital-intensive projects. The company heavily relies on US government contracts, contributing to a stable revenue stream, but its high valuation may be a point of contention for some experts. Insider spending has been noted positively, but the challenge of executing fixed-price contracts during inflation could pose risks to profitability.
Demand for products strong given emphasis on defensive technology (geopolitical tensions). Does not own shares anymore. Not a concern with fundamentals - but seeing better value in other names. ~87% of revenue from US government - very stable. However, valuation too high.
The US defence budget is not constrained by the overall US budget. They're upgrading through their stealth bomber and their space program are drivers. They had an issue with a fixed contract. However, NOC gets access to US defence spending, the highest historically in the world. The only negative is that you have to buy this in inflated US dollars.
Defense is a moat oligopoly with barriers to entry. NOC owns long US Defence Dept. contracts and they own the intellectual property of their defence technology. They operate in 4 segments like space and defence which are predictable and stable. Revenues are stable; 86% of sales are with the US government. They have an $80 billion backlog. Shares pulled back 24% from last year's peaked, but have stabilized. They're grinding through a $1.2 billion cost overrun of the B-21 bomber, fixed-price contract. But a catalyst in 2024 is them likely getting the contract to build the next generation of fight jets. Shares offer returns of 13% compounded historically.
(Analysts’ price target is $489.88)European defence budgets rose after Russia invaded Ukraine. Also, NOC upgraded its B-21 bomber, upgraded its nuclear business as well as its space program. They buy back shares and consistently grow their dividend. Good management that benefits from steady government contracts.
(Analysts’ price target is $504.71)
Northrop Grumman is a American stock, trading under the symbol NOC-N on the New York Stock Exchange (NOC). It is usually referred to as NYSE:NOC or NOC-N
In the last year, 2 stock analysts published opinions about NOC-N. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Northrop Grumman.
Northrop Grumman was recommended as a Top Pick by on . Read the latest stock experts ratings for Northrop Grumman.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
2 stock analysts on Stockchase covered Northrop Grumman In the last year. It is a trending stock that is worth watching.
On 2025-04-15, Northrop Grumman (NOC-N) stock closed at a price of $535.6.
Returns almost 20% over the past 10 years. A great, long-term chart. Are tensions in the Middle East, Ukraine and China encourage defense spending. So it's a growth story. Enjoys insider spending.
(Analysts’ price target is $516.19)