NOC
Defense Stock Misfires Even as Earnings, Backlog Impress
Article Summary
HOLD- Northrop Grumman Corp. (NYSE: NOC) fell 7.8% after reporting stronger-than-expected earnings and a record backlog, but the stock is now down 16% in 2026 and earlier hit a 52-week low of $479.02, having shaved 37.5% off its March 3 record high of $774.02.
- The defense company reported adjusted second-quarter earnings of $7.68 per share on $10.88 billion in revenue, both beating estimates, and raised full-year guidance, but operating income declined due to a decline in operating income, a possible U.S.-Iran ceasefire looming, and potential defense budget cuts in the coming years.
- Despite the technical struggles, 13 of 22 brokerages maintain buy or better ratings with zero sells on the books, while the consensus 12-month price target of $667.12 is a 37% premium from its current perch.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 5.0% | 25% | 20.0 ptsMinimal (5.0%) - Very weak |
| EPS Growth Next 5Y ? | 7.5% | 25% | 20.0 ptsWeak (7.5%) - Low expectations |
| Target Price Upside ? | 31.3% | 20% | 85.0 ptsLarge Upside (31.3%) - Target: $670.90 vs Current: $511.13 |
| Gross Margin % ? | 20.5% | 15% | 40.0 ptsModerate (20.5%) - Adequate margins |
| Drawdown from 52-Wk High ? | -34.0% | 15% | 80.0 ptsSolid Dip (-34.0%) - Good entry zone |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About NOC
- Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally.
- It operates through four segments: Aeronautics Systems, Defense Systems, Mission Systems and Space Systems.
- The Aeronautics Systems segment designs, develops, produces, integrates, sustains, and modernizes aircraft systems.
- This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic, surveillance and reconnaissance systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems.
- Its Defense Systems segment designs, develops, integrates, and produces strategic deterrent systems, tactical weapons, and missile defense solutions; and provides sustainment, modernization, and training services for manned and unmanned aircraft and electronics systems.
- This segment also offers strategic missiles; integrated all-domain command and control systems; precision strike weapons; tactical solid rocket motors, and high-speed air-breathing and hypersonic systems; high-performance gun systems, ammunition, precision munitions, and advanced fuzes; and sustainment, operation, and modernization.
- The Mission Systems segment provides command, control, communication and computer, intelligence, surveillance, and reconnaissance systems; radar, electro-optical/infrared, and acoustic sensors; electronic warfare systems; advanced communications and network systems; microelectronics; navigation and positioning sensors; maritime power, propulsion, and payload launch systems; cyber solutions; and intelligence processing systems.
- Its Space Systems segment offers satellites, spacecraft systems, subsystems, sensors, and payloads; ground systems; missile defense systems and interceptors; and launch vehicles and related propulsion systems.
- The company was founded in 1939 and is based in Falls Church, Virginia.