Northrop Grumman shares rise after military budget proposal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 08 Jan 26
Source: Benzinga
Northrop Grumman's shares increased by 5.02% as the stock crossed above the 5-day SMA, reflecting a positive market reaction to recent developments.
The rise in shares follows President Trump's proposal to increase the 2027 military budget from $1 trillion to $1.5 trillion, indicating strong market optimism about defense spending that could drive future performance growth. Despite a generally weak market, Northrop Grumman's stock surged, reflecting investor confidence in the defense sector amid current geopolitical tensions.
This proposal is likely to enhance Northrop Grumman's market share and profitability as it secures more government contracts, solidifying its leadership position in the defense industry.
Analyst Views on NOC
Wall Street analysts forecast NOC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOC is 684.08 USD with a low forecast of 630.00 USD and a high forecast of 770.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 689.130
Low
630.00
Averages
684.08
High
770.00
Current: 689.130
Low
630.00
Averages
684.08
High
770.00
About NOC
Northrop Grumman Corporation is a global aerospace and defense technology company. Its segments include Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. Aeronautics Systems is engaged in the design, development, production, integration, sustainment and modernization of military aircraft systems for the United States Air Force, the United States Navy, other United States government agencies, and international customers. Defense Systems is engaged in the design, engineering, development, integration, and manufacturing of deterrent systems, advanced tactical weapons, and missile defense solutions. Mission Systems is a provider of mission solutions and multifunction systems. Its products and services include command, control, communications and computers, and reconnaissance (C4ISR) systems. Space Systems delivers end-to-end mission solutions through the design, development, integration, production and operation of space, missile defense, and launch systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
