Northrop Stock Buy Hold or Sell Recommendation

NOC
 Stock
  

USD 462.68  1.99  0.43%   

Considering the 90-day investment horizon and your slightly conservative level of risk, our recommendation regarding Northrop Grumman Corp 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. The advice algorithm takes into account all of Northrop Grumman's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Northrop Grumman's buy-and-hold perspective. Additionally, see 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. We conduct extensive research on individual companies such as Northrop and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Northrop Grumman Corp.

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 Corp. Macroaxis does not own or have any residual interests in Northrop Grumman Corp 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

Execute Advice
Sell Northrop GrummanBuy Northrop Grumman
Strong Buy

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Northrop Grumman Corp has a Risk Adjusted Performance of 0.0464, Jensen Alpha of 0.1261, Total Risk Alpha of 0.2433, Sortino Ratio of 0.1418 and Treynor Ratio of 0.0873
Macroaxis provides trade recommendations on Northrop Grumman Corp to complement and cross-verify current analyst consensus on Northrop Grumman. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Northrop Grumman Corp is not overpriced, please verify all Northrop Grumman Corp fundamentals, including its revenue, current ratio, market capitalization, as well as the relationship between the cash and equivalents and earnings per share . Given that Northrop Grumman Corp has a price to earning of 12.80 X, we recommend you to check Northrop Grumman market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Northrop Grumman Trading Alerts and Improvement Suggestions

Northrop Grumman current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Northrop analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Northrop analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price484.27
Target Median Price499.00
Target High Price550.00
Recommendation Mean2.40
Number Of Analyst Opinions15
Target Low Price377.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Northrop Grumman Returns Distribution Density

The distribution of Northrop Grumman's historical returns is an attempt to chart the future uncertainty of Northrop Grumman's future price movements. The chart of the probability distribution of Northrop Grumman stock daily returns describes the distribution of returns around its average expected value. We use Northrop Grumman Corp 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 stock.
Mean Return0.05Value At Risk-2.48
Potential Upside3.03Standard Deviation1.64
 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 Grumman Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(928 M)(1.25 B)(1.26 B)(1.22 B)(1.09 B)(1.18 B)
Depreciation Amortization and Accretion475 M800 M1.26 B1.27 B1.46 B1.15 B
Net Cash Flow or Change in Cash and Cash Equivalents8.68 B(9.65 B)666 M2.66 B3.06 B3.3 B
Issuance Purchase of Equity Shares(393 M)(1.26 B)(744 M)(490 M)(563.5 M)(607.99 M)
Issuance Repayment of Debt Securities8.23 B(2.4 B)(729 M)1.13 B1.3 B1.28 B
Payment of Dividends and Other Cash Distributions(689 M)(821 M)(880 M)(953 M)(857.7 M)(925.41 M)
Net Cash Flow from Financing6.96 B(4.59 B)(2.42 B)(432 M)(7 B)(7.19 B)
Net Cash Flow from Investing(889 M)(8.88 B)(1.21 B)(1.21 B)2.06 B2.22 B
Net Cash Flow from Operations2.61 B3.83 B4.3 B4.3 B3.57 B3.14 B
Share Based Compensation94 M86 M127 M90 M81 M80.64 M

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 Industrials 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 stock'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
0.13
β
Beta against DOW0.48
σ
Overall volatility
1.64
Ir
Information ratio 0.13

Northrop Grumman Volatility Alert

Northrop Grumman Corp has relatively low volatility with skewness of 0.09 and kurtosis of 0.83. However, we advise all investors to independently investigate Northrop Grumman Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. 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 bullying 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 stocks as prices fall.

Northrop Grumman Implied Volatility

Northrop Grumman's implied volatility exposes the market's sentiment of Northrop Grumman Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Northrop Grumman's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Northrop Grumman stock will not fluctuate a lot when Northrop Grumman's options are near their expiration.

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
FundamentalsNorthrop GrummanPeer Average
Return On Equity48.42 %(0.31) %
Return On Asset11.34 %(0.14) %
Profit Margin16.33 %(1.27) %
Operating Margin24.94 %(5.51) %
Current Valuation83.61 B16.62 B
Shares Outstanding155.44 M571.82 M
Shares Owned by Insiders0.21 %10.09 %
Shares Owned by Institutions83.97 %39.21 %
Number of Shares Shorted2.07 M4.71 M
Price to Earning12.80 X28.72 X
Price to Book5.43 X9.51 X
Price to Sales2.04 X11.42 X
Revenue35.31 B9.43 B
Gross Profit7.27 B27.38 B
EBITDA8.81 B3.9 B
Net Income5.77 B570.98 M
Cash and Equivalents2.17 B2.7 B
Cash per Share13.99 X5.01 X
Total Debt14.49 B5.32 B
Debt to Equity1.09 %48.70 %
Current Ratio1.31 X2.16 X
Book Value Per Share85.40 X1.93 K
Cash Flow from Operations3.14 B971.22 M
Short Ratio2.46 X4.00 X
Earnings Per Share36.22 X3.12 X
Price to Earnings To Growth3.06 X4.89 X
Number of Employees90 K18.84 K
Beta0.7-0.15
Market Capitalization72.08 B19.03 B
Total Asset25.61 B29.47 B
Retained Earnings8.65 B9.33 B
Working Capital1.23 B1.48 B
Current Asset6.86 B9.34 B
   Bona fide gift to Kathy Warden of 1935 shares of Northrop Grumman subject to Section 16 [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.
Accumulation Distribution3762.03
Daily Balance Of Power(0.25)
Rate Of Daily Change1.0
Day Median Price463.31
Day Typical Price463.1
Market Facilitation Index0.0
Price Action Indicator(1.62)

About Northrop Grumman Buy or Sell Advice

When is the right time to buy or sell Northrop Grumman Corp? 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 stock 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. Although Northrop Grumman investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables6.66 B6.64 B6.96 B5.49 B
Inventories783 M759 M811 M895.11 M

Use Investing Ideas to Build Portfolios

In addition to having Northrop Grumman in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Giant Impact
Giant Impact Theme
An experimental equal-weighted decomposition of large high potential stocks based on Macroaxis scoring framework. The Giant Impact theme has 43 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Giant Impact Theme or any other thematic opportunities.
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Additionally, see 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. Note that the Northrop Grumman Corp information on this page should be used as a complementary analysis to other Northrop Grumman's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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When running Northrop Grumman Corp price analysis, check to measure Northrop Grumman's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Northrop Grumman is operating at the current time. Most of Northrop Grumman's value examination focuses on studying past and present price action to predict the probability of Northrop Grumman's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Northrop Grumman's price. Additionally, you may evaluate how the addition of Northrop Grumman to your portfolios can decrease your overall portfolio volatility.
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Is Northrop Grumman's industry 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.
The market value of Northrop Grumman Corp 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 Northrop Grumman value 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.