NOC Stock Analysis — Northrop Grumman
Sector: Aerospace & Defense
AI Verdict
NOC trades at a fair multiple for its sector, but with earnings expected to decline, you’re paying up for the safety of its government contract moat rather than any growth story.
Competitive Moat
Northrop Grumman builds advanced military systems, including stealth bombers, missile defense, and classified defense technologies, with decades-long government contracts that create high switching costs and regulatory barriers. Its deep integration into U.S. defense procurement and proprietary expertise in aerospace engineering make its position defensible against new entrants.
Summary
NOC's steady government contract pipeline and focus on next-gen defense tech keep it in the spotlight despite muted earnings growth.
Where It Stands
Shares returned 7.31% over the past year, the RSI is a neutral 49.9, and it trades at 17.7x forward earnings versus a sector median of 20x for industrials.
Key Metrics
- RSI: 49.9 — Neutral
- Trailing P/E: 17.1x
- Forward P/E: 17.7x
- Earnings Growth: -0.0%
- Revenue Growth: +0.0%
- Market Cap: $77.4B
- Dividend Yield: 0.02%
- 1-Year Return: 7.31%
- 52-Week High: $774.00
- 52-Week Low: $493.84
Analyst Consensus
18 Buy · 10 Hold · 0 Sell (28 analysts)
Bull Case
At a 17.7x forward P/E, you’re paying below the industrials median for a company with entrenched defense contracts and a $77.4B market cap.
Bear Case
With forward EPS expected to shrink by 3.9% and a trailing P/E of 17.1x, any further P/E compression to the sector median would mean a material drop from current levels.
Catalyst to Watch
Watch for major contract wins or U.S. defense budget shifts, as these directly impact forward earnings expectations.