Northrop Grumman Corp (NOC): Today's Featured Industrial Goods Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Northrop Grumman ( NOC) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day up 1%. By the end of trading, Northrop Grumman rose 86 cents (1.3%) to $68.35 on average volume. Throughout the day, two million shares of Northrop Grumman exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in a price between $67.35-$68.59 after having opened the day at $67.46 as compared to the previous trading day's close of $67.49. Other companies within the Industrial Goods sector that increased today were: Tecumseh Products Company ( TECUB), up 20.6%, Tecumseh Products Company ( TECUA), up 19.5%, Matrix Service Company ( MTRX), up 12.7%, and JinkoSolar ( JKS), up 12.2%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Northrop Grumman Corporation provides products, services, and solutions in aerospace, electronics, information systems, and technical services worldwide. Northrop Grumman has a market cap of $16.57 billion and is part of the aerospace/defense industry. The company has a P/E ratio of 8.7, below the S&P 500 P/E ratio of 17.7. Shares are down 0.2% year to date as of the close of trading on Friday. Currently there is one analyst that rates Northrop Grumman a buy, four analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Northrop Grumman as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Sharps Compliance Corporation ( SMED), down 6.6%, India Globalization Capital ( IGC), down 6.1%, Intellicheck Mobilisa ( IDN), down 5.8%, and Ultralife Batteries ( ULBI), down 3.8%, were all laggards within the industrial goods sector with Kennametal ( KMT) being today's industrial goods sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.