Northrop Stock Market Value

NOC
 Stock
  

USD 473.55  3.50  0.74%   

Northrop Grumman's market value is the price at which a share of Northrop Grumman stock trades on a public exchange. It measures the collective expectations of Northrop Grumman Corp investors about the entity's future performance. With this module, you can estimate the performance of a buy and hold strategy of Northrop Grumman Corp and determine expected loss or profit from investing in Northrop Grumman over a given investment horizon. Additionally, see Northrop Grumman Hype Analysis, Northrop Grumman Correlation, Northrop Grumman Valuation, Northrop Grumman Volatility, as well as analyze Northrop Grumman Alpha and Beta and Northrop Grumman Performance.
Symbol


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.
Quarterly Earnings Growth YOY
-0.056
Market Capitalization
73.9 B
Quarterly Revenue Growth YOY
-0.038
Return On Assets
0.11
Return On Equity
0.46
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.

Northrop Grumman 'What if' Analysis

In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Northrop Grumman's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Northrop Grumman.
0.00
08/19/2020
No Change 0.00  0.0 
In 1 year 11 months and 22 days
08/09/2022
0.00
If you would invest  0.00  in Northrop Grumman on August 19, 2020 and sell it all today you would earn a total of 0.00 from holding Northrop Grumman Corp or generate 0.0% return on investment in Northrop Grumman over 720 days. Northrop Grumman is related to or competes with Nabors Industries, Ngl Energy, NOV, Owens Corning, O-I Glass, Plains All, and Parker-Hannifin Corp. Northrop Grumman Corporation operates as an aerospace and defense company worldwideMore

Northrop Grumman Upside/Downside Indicators

Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Northrop Grumman's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Northrop Grumman Corp upside and downside potential and time the market with a certain degree of confidence.

Northrop Grumman Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for Northrop Grumman's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Northrop Grumman's standard deviation. In reality, there are many statistical measures that can use Northrop Grumman historical prices to predict the future Northrop Grumman's volatility.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Northrop Grumman's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Northrop Grumman in the context of predictive analytics.
Hype
Prediction
LowEstimated ValueHigh
467.84469.71471.58
Details
Intrinsic
Valuation
LowReal ValueHigh
431.77433.64517.06
Details
Naive
Forecast
LowNext ValueHigh
487.18489.04490.91
Details
10 Analysts
Consensus
LowTarget PriceHigh
331.00398.91460.00
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Northrop Grumman. Your research has to be compared to or analyzed against Northrop Grumman's peers to derive any actionable benefits. When done correctly, Northrop Grumman's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Northrop Grumman Corp.

Northrop Grumman Corp Backtested Returns

We consider Northrop Grumman very steady. Northrop Grumman Corp has Sharpe Ratio of 0.0732, which conveys that the firm had 0.0732% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Northrop Grumman, which you can use to evaluate the future volatility of the firm. Please verify Northrop Grumman Corp Mean Deviation of 1.36, downside deviation of 1.58, and Risk Adjusted Performance of 0.036 to check out if the risk estimate we provide is consistent with the expected return of 0.14%.
Northrop Grumman has a performance score of 5 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 0.579, which conveys possible diversification benefits within a given portfolio. Let's try to break down what Northrop's beta means in this case. As returns on the market increase, Northrop Grumman returns are expected to increase less than the market. However, during the bear market, the loss on holding Northrop Grumman will be expected to be smaller as well. Although it is important to respect Northrop Grumman Corp price patterns, it is better to be realistic regarding the information on the equity's historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Northrop Grumman Corp technical indicators, you can presently evaluate if the expected return of 0.14% will be sustainable into the future. Northrop Grumman Corp right now secures a risk of 1.86%. Please verify Northrop Grumman Corp expected short fall, and the relationship between the value at risk and daily balance of power to decide if Northrop Grumman Corp will be following its current price movements.

Auto-correlation

    
  0.70  

Good predictability

Northrop Grumman Corp has good predictability. Overlapping area represents the amount of predictability between Northrop Grumman time series from 19th of August 2020 to 14th of August 2021 and 14th of August 2021 to 9th of August 2022. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Northrop Grumman Corp price movement. The serial correlation of 0.7 indicates that around 70.0% of current Northrop Grumman price fluctuation can be explain by its past prices.
Correlation Coefficient0.7
Spearman Rank Test0.52
Residual Average0.0
Price Variance2133.98

Northrop Grumman Corp lagged returns against current returns

Autocorrelation, which is Northrop Grumman stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Northrop Grumman's stock expected returns. We can calculate the autocorrelation of Northrop Grumman returns to help us make a trade decision. For example, suppose you find that Northrop Grumman stock has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the stock movement to match the lagging time series.
   Current and Lagged Values   
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       Timeline  

Northrop Grumman regressed lagged prices vs. current prices

Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Northrop Grumman stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Northrop Grumman stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Northrop Grumman stock over time.
   Current vs Lagged Prices   
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       Timeline  

Northrop Grumman Lagged Returns

When evaluating Northrop Grumman's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Northrop Grumman stock have on its future price. Northrop Grumman autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Northrop Grumman autocorrelation shows the relationship between Northrop Grumman stock current value and its past values and can show if there is a momentum factor associated with investing in Northrop Grumman Corp.
   Regressed Prices   
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       Timeline  

Northrop Grumman Investors Sentiment

The influence of Northrop Grumman's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Northrop. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Northrop Grumman's public news can be used to forecast risks associated with investment in Northrop. The trend in average sentiment can be used to explain how an investor holding Northrop can time the market purely based on public headlines and social activities around Northrop Grumman Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Northrop Grumman's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Northrop Grumman's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Northrop Grumman's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Northrop Grumman.

Northrop Grumman Implied Volatility

    
  29.58  
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.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Northrop Grumman in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Northrop Grumman's short interest history, or implied volatility extrapolated from Northrop Grumman options trading.

Becoming a Better Investor with Macroaxis

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Additionally, see Northrop Grumman Hype Analysis, Northrop Grumman Correlation, Northrop Grumman Valuation, Northrop Grumman Volatility, as well as analyze Northrop Grumman Alpha and Beta and Northrop Grumman Performance. 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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Northrop Grumman technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Northrop Grumman technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Northrop Grumman trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...