NOC:NYSENorthrop Grumman Corporation Analysis
Data as of 2026-04-20 - not real-time
$665.26
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
Northrop Grumman (NOC) is trading at $665.26, roughly double its DCF‑derived fair value of $318.76, implying a significant overvaluation despite a modest 10.7% upside estimate from analysts. Fundamentally, the company delivers solid performance with a 9.6% revenue growth, 26% ROE, and a low payout ratio of 31% supporting the 1.39% dividend yield, suggesting cash‑flow strength. However, technicals are mixed: the 20‑day SMA (685) sits above price, the RSI at 36.7 hints at mild oversold conditions, while a bearish MACD and decreasing volume point to short‑term pressure near the $663 support level. Upcoming Q1 earnings on April 21 will be a catalyst, and the “Extreme Greed” sentiment (fear‑greed index 87.7) adds a contrarian flavor to the current setup.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price hovering just above the $663 support level
- Bearish MACD and decreasing volume signal limited upside
- Impending earnings release could swing sentiment
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Strong revenue growth and 26% ROE underpin earnings stability
- Dividend yield of 1.39% with a comfortable payout ratio
- Analyst median price target of $757 suggests ~14% upside
Long Term
> 3 yearsNeutral
Model confidence: 7/10
Key Factors
- Long‑term defense contracts and a diversified product portfolio
- High debt‑to‑equity (107%) and elevated price‑to‑book (5.66) keep valuation elevated
- Sustainable dividend and resilient cash flow support shareholder returns
Key Metrics & Analysis
Financial Health
Revenue Growth9.60%
Profit Margin9.97%
P/E Ratio22.9
ROE26.17%
ROA6.64%
Debt/Equity107.26
P/B Ratio5.7
Op. Cash Flow$4.8B
Free Cash Flow$2.9B
Industry P/E31.3
Technical Analysis
TrendNeutral
RSI36.7
Support$663.02
Resistance$717.34
MA 20$685.04
MA 50$708.12
MA 200$616.60
MACDBearish
VolumeDecreasing
Fear & Greed Index87.7
Valuation
Fair Value$318.76
Target Price$736.24
Upside/Downside10.67%
GradeOvervalued
TypeGrowth
Dividend Yield1.39%
Risk Assessment
Beta-0.18
Volatility21.29%
Sector RiskLow
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.