Northrop Grumman Stock Buy Hold or Sell Recommendation
| NOC Stock | USD 496.87 0.46 0.09% |
Considering the 90-day investment horizon and your highly speculative risk level, our recommendation regarding Northrop Grumman is 'Strong Buy'. Macroaxis provides Northrop Grumman buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding NOC positions.
Check out Northrop Grumman Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Northrop Stock refer to our How to Trade Northrop Stock guide. In addition, we conduct extensive research on individual companies such as Northrop and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Northrop Grumman. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.
Northrop |
Execute Northrop Grumman Buy or Sell Advice
The Northrop recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Northrop Grumman. Macroaxis does not own or have any residual interests in Northrop Grumman or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Northrop Grumman's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Buy
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Northrop Grumman Trading Alerts and Improvement Suggestions
| Northrop Grumman generated a negative expected return over the last 90 days | |
| Over 83.0% of the company shares are owned by institutional investors | |
| Latest headline from space.com: NASA begins stacking SLS rocket for Artemis 2 moon mission |
Northrop Grumman Returns Distribution Density
The distribution of Northrop Grumman's historical returns is an attempt to chart the uncertainty of Northrop Grumman's future price movements. The chart of the probability distribution of Northrop Grumman daily returns describes the distribution of returns around its average expected value. We use Northrop Grumman price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Northrop Grumman returns is essential to provide solid investment advice for Northrop Grumman.
| Mean Return | -0.03 | Value At Risk | -1.58 | Potential Upside | 1.62 | Standard Deviation | 1.05 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Northrop Grumman historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Northrop Stock Institutional Investors
| Shares | Massachusetts Financial Services Company | 2024-09-30 | 2.4 M | Sanders Capital, Llc | 2024-09-30 | 2.3 M | Capital World Investors | 2024-09-30 | 1.9 M | Ameriprise Financial Inc | 2024-06-30 | 1.7 M | Amvescap Plc. | 2024-06-30 | 1.3 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.2 M | Northern Trust Corp | 2024-09-30 | 1.1 M | Legal & General Group Plc | 2024-06-30 | 1.1 M | T. Rowe Price Associates, Inc. | 2024-06-30 | 977 K | State Street Corp | 2024-06-30 | 14 M | Vanguard Group Inc | 2024-09-30 | 12.6 M |
Northrop Grumman Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (135M) | 18M | (52M) | (205M) | (220M) | (209M) | |
| Change In Cash | 666M | 2.7B | (1.4B) | (953M) | 532M | 558.6M | |
| Free Cash Flow | 3.0B | 2.9B | 2.2B | 1.5B | 2.1B | 1.4B | |
| Depreciation | 1.0B | 1.3B | 1.2B | 1.3B | 1.3B | 1.4B | |
| Other Non Cash Items | 2.0B | 1B | (5.6B) | (2.5B) | 1.5B | 1.6B | |
| Dividends Paid | 880M | 953M | 983M | 1.1B | 1.1B | 1.2B | |
| Capital Expenditures | 1.3B | 1.4B | 1.4B | 1.4B | 1.8B | 1.9B | |
| Net Income | 2.2B | 3.2B | 7.0B | 4.9B | 2.1B | 1.5B | |
| End Period Cash Flow | 2.2B | 4.9B | 3.5B | 2.6B | 3.1B | 2.1B | |
| Change To Netincome | (441M) | 266M | (2.5B) | (1.5B) | (1.4B) | (1.3B) | |
| Change Receivables | (213M) | (125M) | (424M) | (690M) | (621M) | (590.0M) | |
| Net Borrowings | (2.4B) | (729M) | 1.1B | (2.2B) | (2.0B) | (1.9B) | |
| Investments | (1.2B) | (1.2B) | 2.1B | (1.2B) | (1.4B) | (1.5B) |
Northrop Grumman Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Northrop Grumman or Aerospace & Defense sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Northrop Grumman's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Northrop stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.1 | |
β | Beta against Dow Jones | 0.52 | |
σ | Overall volatility | 1.06 | |
Ir | Information ratio | -0.15 |
Northrop Grumman Volatility Alert
Northrop Grumman exhibits very low volatility with skewness of -0.36 and kurtosis of 2.4. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Northrop Grumman's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Northrop Grumman's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Northrop Grumman Fundamentals Vs Peers
Comparing Northrop Grumman's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Northrop Grumman's direct or indirect competition across all of the common fundamentals between Northrop Grumman and the related equities. This way, we can detect undervalued stocks with similar characteristics as Northrop Grumman or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Northrop Grumman's fundamental indicators could also be used in its relative valuation, which is a method of valuing Northrop Grumman by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Northrop Grumman to competition |
| Fundamentals | Northrop Grumman | Peer Average |
| Return On Equity | 0.15 | -0.31 |
| Return On Asset | 0.0416 | -0.14 |
| Profit Margin | 0.06 % | (1.27) % |
| Operating Margin | 0.13 % | (5.51) % |
| Current Valuation | 85.58 B | 16.62 B |
| Shares Outstanding | 145.7 M | 571.82 M |
| Shares Owned By Insiders | 0.25 % | 10.09 % |
| Shares Owned By Institutions | 82.99 % | 39.21 % |
| Number Of Shares Shorted | 1.44 M | 4.71 M |
| Price To Earning | 14.90 X | 28.72 X |
| Price To Book | 4.91 X | 9.51 X |
| Price To Sales | 1.77 X | 11.42 X |
| Revenue | 39.29 B | 9.43 B |
| Gross Profit | 7.47 B | 27.38 B |
| EBITDA | 2.54 B | 3.9 B |
| Net Income | 2.06 B | 570.98 M |
| Cash And Equivalents | 2.58 B | 2.7 B |
| Cash Per Share | 10.82 X | 5.01 X |
| Total Debt | 15.68 B | 5.32 B |
| Debt To Equity | 1.04 % | 48.70 % |
| Current Ratio | 1.14 X | 2.16 X |
| Book Value Per Share | 101.14 X | 1.93 K |
| Cash Flow From Operations | 3.88 B | 971.22 M |
| Short Ratio | 2.11 X | 4.00 X |
| Earnings Per Share | 16.20 X | 3.12 X |
| Price To Earnings To Growth | 0.87 X | 4.89 X |
| Target Price | 566.91 | |
| Number Of Employees | 101 K | 18.84 K |
| Beta | 0.35 | -0.15 |
| Market Capitalization | 72.39 B | 19.03 B |
| Total Asset | 46.54 B | 29.47 B |
| Retained Earnings | 14.77 B | 9.33 B |
| Working Capital | 1.76 B | 1.48 B |
Note: Acquisition by Graham Robinson of tradable shares of Northrop Grumman at 478.66 subject to Rule 16b-3 [view details]
Northrop Grumman Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Northrop . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Northrop Grumman Buy or Sell Advice
When is the right time to buy or sell Northrop Grumman? Buying financial instruments such as Northrop Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Northrop Grumman Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Northrop Stock refer to our How to Trade Northrop Stock guide.You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Northrop Grumman. If investors know Northrop will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Northrop Grumman listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.133 | Dividend Share 7.86 | Earnings Share 16.2 | Revenue Per Share 276.412 | Quarterly Revenue Growth 0.023 |
The market value of Northrop Grumman is measured differently than its book value, which is the value of Northrop that is recorded on the company's balance sheet. Investors also form their own opinion of Northrop Grumman's value that differs from its market value or its book value, called intrinsic value, which is Northrop Grumman's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Northrop Grumman's market value can be influenced by many factors that don't directly affect Northrop Grumman's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Northrop Grumman's value and its price as these two are different measures arrived at by different means. Investors typically determine if Northrop Grumman is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northrop Grumman's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.