Northrop Grumman (NOC) Shows Signs Of Being Water-Logged And Getting Wetter
Trade-Ideas LLC identified
(
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Northrop Grumman as such a stock due to the following factors:
- NOC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $295.5 million.
- NOC has traded 527,042 shares today.
- NOC traded in a range 222.4% of the normal price range with a price range of $5.51.
- NOC traded below its daily resistance level (quality: 21 days, meaning that the stock is crossing a resistance level set by the last 21 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on NOC:
Northrop Grumman Corporation, a security company, provides systems, products, and solutions in aerospace, electronics, information systems, and technical service areas to government and commercial customers worldwide. The stock currently has a dividend yield of 1.6%. NOC has a PE ratio of 2. Currently there are 5 analysts that rate Northrop Grumman a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Northrop Grumman has been 962,800 shares per day over the past 30 days. Northrop Grumman has a market cap of $40.0 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.80 and a short float of 1.4% with 1.89 days to cover. Shares are up 17.9% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Northrop Grumman as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 25.72% and other important driving factors, this stock has surged by 31.24% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NOC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- NORTHROP GRUMMAN CORP has improved earnings per share by 25.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NORTHROP GRUMMAN CORP increased its bottom line by earning $10.39 versus $9.74 in the prior year. This year, the market expects an improvement in earnings ($10.70 versus $10.39).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Aerospace & Defense industry average. The net income increased by 14.9% when compared to the same quarter one year prior, going from $484.00 million to $556.00 million.
- Net operating cash flow has significantly increased by 90.82% to -$60.00 million when compared to the same quarter last year. In addition, NORTHROP GRUMMAN CORP has also vastly surpassed the industry average cash flow growth rate of -0.94%.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to other companies in the Aerospace & Defense industry and the overall market on the basis of return on equity, NORTHROP GRUMMAN CORP has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
- You can view the full Northrop Grumman Ratings Report.
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