Northrop Stock Performance

NOC
 Stock
  

USD 463.70  7.46  1.64%   

Northrop Grumman has a performance score of 4 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 0.5173, 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 0.098% will be sustainable into the future. Northrop Grumman Corp right now secures a risk of 1.55%. Please verify Northrop Grumman Corp information ratio, value at risk, as well as the relationship between the Value At Risk and expected short fall to decide if Northrop Grumman Corp will be following its current price movements.
  
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Northrop Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Northrop Grumman Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Northrop Grumman is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors. ...more

Structure and Payout Changes

Forward Annual Dividend Yield
0.0149
Payout Ratio
0.26
Last Split Factor
10000:9035
Forward Annual Dividend Rate
6.92
Dividend Date
2022-06-15
Ex Dividend Date
2022-05-27
Last Split Date
2011-03-31

Northrop Price Channel

Quick Ratio1.13
Fifty Two Week Low344.89
Target High Price550.00
Fifty Two Week High492.30
Payout Ratio17.34%
Trailing Annual Dividend Yield1.38%
Target Low Price377.00

Northrop Grumman Relative Risk vs. Return Landscape

If you would invest  30,189  in Northrop Grumman Corp on March 28, 2022 and sell it today you would earn a total of  16,181  from holding Northrop Grumman Corp or generate 53.6% return on investment over 90 days. Northrop Grumman Corp is generating 0.098% of daily returns assuming volatility of 1.5474% on return distribution over 90 days investment horizon. In other words, 13% of stocks are less volatile than Northrop, and above 99% of all equities are expected to generate higher returns over the next 90 days.
 Daily Expected Return (%) 
      Risk (%) 
Considering the 90-day investment horizon Northrop Grumman is expected to generate 1.56 times more return on investment than the market. However, the company is 1.56 times more volatile than its market benchmark. It trades about 0.06 of its potential returns per unit of risk. The DOW is currently generating roughly 0.04 per unit of risk.

Northrop Grumman Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Northrop Grumman's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Northrop Grumman Corp, and traders can use it to determine the average amount a Northrop Grumman's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0633

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Estimated Market Risk
 1.55
  actual daily
 
 13 %
of total potential
 
1313
Expected Return
 0.1
  actual daily
 
 1 %
of total potential
 
11
Risk-Adjusted Return
 0.06
  actual daily
 
 4 %
of total potential
 
44
Based on monthly moving average Northrop Grumman is performing at about 4% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Northrop Grumman by adding it to a well-diversified portfolio.

About Northrop Grumman Performance

To evaluate Northrop Grumman Corp Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Northrop Grumman generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Northrop Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Northrop Grumman Corp stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents Northrop's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Return on Investment 14.53  19.24 
Return on Average Assets 16.09  17.37 
Return on Average Equity 59.60  64.31 
Return on Invested Capital 0.15  0.19 
Return on Sales 0.13  0.14 
Northrop Grumman Corporation operates as an aerospace and defense company worldwide. The company was founded in 19 and is based in Falls Church, Virginia. Northrop Grumman operates under Aerospace Defense classification in the United States and is traded on New York Stock Exchange. It employs 90000 people.

Things to note about Northrop Grumman Corp

Checking the ongoing alerts about Northrop Grumman for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Northrop Grumman Corp help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Northrop Grumman Alerts

Equity Alerts and Improvement Suggestions

Over 84.0% of the company shares are owned by institutional investors
Latest headline from www.investing.com: Northrop and Raytheon win key US hypersonic defense contracts By Reuters - Investing.com
Additionally, see Stocks Correlation. 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 Global Correlations module to find global opportunities by holding instruments from different markets.

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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.
Quarterly Earnings Growth YOY
-0.55
Market Capitalization
72.1 B
Quarterly Revenue Growth YOY
-0.039
Return On Assets
0.11
Return On Equity
0.48
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.