#6 - Northrop Grumman (NYSE:NOC)
Northrop Grumman Corp. (NYSE: NOC) is one of the leading names in the defense sector. Although thought of as a cyclical sector, global defense spending continues to increase due to the war between Russia and Ukraine and the current conflict in the Middle East.
Despite anything that a particular candidate may say, geopolitical concerns are likely to be a tailwind for all defense stocks in 2025 and beyond. To begin with, defense stocks usually perform well when the Federal Reserve is cutting interest rates. Second, despite the current geopolitical situation, the defense budget as a percentage of the economy remains small on a percentage basis.
In its October earnings report, the company beat on earnings but slightly missed on the top line. Nevertheless, it raised its guidance for the full year and announced efforts to increase margins in 2025.
NOC stock is up 9.7% in 2024. The company is also a solid dividend stock with 21 consecutive years of dividend increases.
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
- $485.27
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 10 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $550.56 (13.5% Upside)
