Trade-Ideas LLC identified

Northrop Grumman

(

NOC

) as a new lifetime high 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 $241.4 million.
  • NOC has traded 274,851 shares today.
  • NOC is trading at a new lifetime high.

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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 1.7%. NOC has a PE ratio of 19. Currently there are 6 analysts that rate Northrop Grumman a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Northrop Grumman has been 1.3 million shares per day over the past 30 days. Northrop Grumman has a market cap of $34.9 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.95 and a short float of 1.2% with 1.95 days to cover. Shares are up 1.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Northrop Grumman as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations, notable return on equity, reasonable valuation levels and growth in earnings per share. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Net operating cash flow has slightly increased to $1,633.00 million or 9.59% when compared to the same quarter last year. In addition, NORTHROP GRUMMAN CORP has also modestly surpassed the industry average cash flow growth rate of 7.04%.
  • 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.
  • NORTHROP GRUMMAN CORP reported flat earnings per share in the most recent quarter. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NORTHROP GRUMMAN CORP increased its bottom line by earning $10.39 versus $9.74 in the prior year. For the next year, the market is expecting a contraction of 1.8% in earnings ($10.20 versus $10.39).

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