Northrop Grumman (NOC): Does the Recent Decline Present a Valuation Opportunity?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 06 2025
0mins
Source: Yahoo Finance
Stock Performance: Northrop Grumman's share price has seen a recent decline, but its long-term returns remain strong, with a five-year total shareholder return of 98.33%, indicating sustained momentum.
Valuation Insights: The stock is currently trading at a price-to-earnings ratio of 19.5, significantly lower than the industry average of 37.9, suggesting potential upside but raising questions about market sentiment.
Growth Potential: Supportive government actions and a strong backlog are expected to enhance earnings stability and cash flow, with a fair value estimate of $667.21 indicating the stock may be undervalued.
Risks and Considerations: The optimistic outlook could be jeopardized by budget issues or delays in major US defense programs, highlighting the importance of assessing key risks in investment decisions.
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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: 695.350
Low
630.00
Averages
684.08
High
770.00
Current: 695.350
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.
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