Northrop Stock Alpha and Beta Analysis


USD 470.31  2.83  0.60%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Northrop Grumman Corp. It also helps investors analyze the systematic and unsystematic risks associated with investing in Northrop Grumman over a specified time horizon. Remember, high Northrop Grumman's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Additionally, see Northrop Grumman Backtesting, Northrop Grumman Valuation, Northrop Grumman Correlation, Northrop Grumman Hype Analysis, Northrop Grumman Volatility, Northrop Grumman History and analyze Northrop Grumman Performance.
Please note that although Northrop Grumman alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Northrop Grumman did 0.036169  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Northrop Grumman Corp stock's relative risk over its benchmark. Northrop Grumman Corp has a beta of 0.60  . 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.
As of August 11, 2022, Book Value per Share is expected to decline to 62.73. In addition to that, Enterprise Value over EBIT is expected to decline to 15.16.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Enterprise Value

60.55 Billion

Northrop Grumman Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Northrop Grumman market risk premium is the additional return an investor will receive from holding Northrop Grumman long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Northrop Grumman. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Northrop Grumman's performance over market.
α0.036169   β0.60
90 days against DJI

Northrop Grumman expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Northrop Grumman's Buy-and-hold return. Our buy-and-hold chart shows how Northrop Grumman performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Northrop Grumman Market Price Analysis

Market price analysis indicators help investors to evaluate how Northrop Grumman stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Northrop Grumman shares will generate the highest return on investment. By understating and applying Northrop Grumman stock market price indicators, traders can identify Northrop Grumman position entry and exit signals to maximize returns.

Northrop Grumman Return and Market Media

The median price of Northrop Grumman for the period between Fri, May 13, 2022 and Thu, Aug 11, 2022 is 463.77 with a coefficient of variation of 2.58. The daily time series for the period is distributed with a sample standard deviation of 11.95, arithmetic mean of 463.66, and mean deviation of 9.84. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
Northrop Arm Wins Deal for Infrared Missile Sensor - Nasdaq05/20/2022
Northrop Grumman Corp. stock rises Wednesday, still underper...06/15/2022
Northrop and Raytheon win key US hypersonic defense contract...06/24/2022
EPS Estimate06/30/2022
Acquisition by Marianne Brown of tradable shares of Northrop...07/05/2022
Northrop Grumman completes design review of high-energy lase...07/11/2022
Northrop Grumman Delivers First IBCS Engagement Operations C...07/20/2022
Top 5 2nd Quarter Trades of AFFINITY INVESTMENT ADVISORS, LL...07/27/2022
EPS Reported07/28/2022
Missile Defense Agency Selects Northrop Grumman to Lead Home...08/01/2022
Sale by Thomas Wilson of 582 shares of Northrop Grumman08/08/2022
Northrop Grumman built Landsat 9 Earth Observation Satellite...08/11/2022

About Northrop Grumman Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all equity instruments such as Ford or other stocks, funds, and ETFs. Alpha measures the amount that position in Northrop Grumman Corp has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2019 2020 2021 2022 (projected)
Long Term Debt to Equity1.451.350.990.96
Interest Coverage7.526.856.69.34

Northrop Grumman Upcoming Company Events

As portrayed in its financial statements, the presentation of Northrop Grumman's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Northrop Grumman's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Northrop Grumman's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Northrop Grumman. Please utilize our Beneish M Score to check the likelihood of Northrop Grumman's management manipulating its earnings.
Upcoming Quarterly Report27th of January 2022
Next Financial Report5th of May 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End27th of January 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

Build Portfolio with Northrop Grumman

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By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Additionally, see Northrop Grumman Backtesting, Northrop Grumman Valuation, Northrop Grumman Correlation, Northrop Grumman Hype Analysis, Northrop Grumman Volatility, Northrop Grumman History and analyze 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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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...