#2 - Northrop Grumman (NYSE:NOC)
Despite a surge in late October that pushed it above 52-week lows, Northrop Grumman Corporation (NYSE: NOC) is down over 13% in 2023. However, the stock has bounced off what has been a level of support that had been in place since August 2022. From a technical standpoint, investors will wait to see if NOC stock can stay above an area of resistance around $480.
The reason for the recent surge has to do with the company's revenue and earnings in October 2023. Both numbers beat analysts' expectations and were higher YoY.
Of the stocks on this list, Northrop has the highest forward P/E ratio at just over 20x earnings. Combined with anticipated earnings growth of just over 6% in the next year, NOC stock may be fairly priced.
However, investors are getting a strong dividend. The yield of 1.59% is not impressive at face value but reflects the price you pay for NOC stock. The more important consideration for investors is 20 consecutive years of dividend growth and an annual per-share payment of $7.48.
About Northrop Grumman
Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. The company's Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems.
Read More - Current Price
- $496.41
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 10 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $550.56 (10.9% Upside)
