Stock Price & Analysis

Based on the analysis, Northrop Grumman (NOC) is undervalued compared to its peers with a P/E ratio of 17.34x, strong backlog, and solid revenue growth. Buy NOC stock as it has favorable valuation, growth prospects, and positive analyst sentiment.

Northrop Grumman's stock is predicted to reach $544 by the end of 2025. This forecast is supported by strong international demand and recent contract wins, though near-term challenges like contract transitions may impact growth.

The S1 support level for NOC Stock is $488.67 ,The R1 resistant level for NOC Stock is $515.34.

As of the end of day on 2025-04-01, the price of NOC Stock was $514.

The target price for NOC Stock according to analyst rating is 545.07, with the highest price target at 600.00 and the lowest at 500.00. Analysts have a Moderate Buy rating on NOC Stock overall.

The market cap of NOC is $74.3B.

Analysis and Insights

Valuation Metrics:

Northrop Grumman (NOC) currently exhibits a mix of valuation metrics that suggest cautious optimism. Key metrics include:

• P/E Ratio: 16.56
• EV/EBITDA: 13.99
• P/S Ratio: 1.68
• P/B Ratio: 4.45
• Dividend Yield: 1.72%

These metrics indicate moderate valuation levels, with the P/B ratio being notably high, suggesting the stock may be overvalued relative to its book value.

Market and Industry Context:

The broader market appears overvalued based on multiple models, including the Buffett Indicator and the Price/Earnings Model, which may influence NOC's valuation. Additionally, NOC is competing for significant defense contracts, including the F/A-XX program, which could drive future growth but also introduces competition risk.

Recent Performance and Catalysts:

NOC has shown recent price strength, closing at 506.62 with a 2.33% gain. Positive news, such as a $3.5 billion contract win, contributes to this performance. However, the stock's valuation, particularly the high P/B ratio, raises concerns about overvaluation.

Analyst Sentiment:

Analysts maintain a Moderate Buy rating on NOC, with a 10% average price target upside. This indicates cautious optimism but not strong conviction.

Conclusion:

While NOC has strong fundamentals and positive catalysts, its valuation metrics, particularly the high P/B ratio, suggest the stock may be overvalued. Investors should weigh the potential for future contract wins against the current price levels.

Northrop Grumman Corporation is a global aerospace and defense technology company. The Company operates through four segments: Aeronautics Systems, Defense Systems, Mission Systems and Space Systems. The Aeronautics Systems segment is engaged in the design, development, production, integration, sustainment and modernization of advanced aircraft systems for the United States Air Force, the United States Navy, and international customers. The Defense Systems segment is engaged in the design, development, production, integration, and production of advanced tactical weapons and missile defense solutions, and a provider of sustainment, modernization and training services for manned and unmanned aircraft and electronics systems. The Mission Systems segment is engaged in advanced mission solutions and multifunction systems. The Space Systems segment is engaged in the design, development, integration, production and operation of space, missile defense, launch and strategic missile systems.

Northrop Grumman's stock price could reach $620 by 2030, driven by its strong backlog of $91.5B and growing international demand. The company's exposure to advanced defense technologies and space systems positions it well for long-term growth. Analysts expect continued expansion in global defense spending to support NOC's valuation.

NOC has a total of 101000 employees.