New Lifetime High Reached: Northrop Grumman (NOC)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 $147.4 million.
  • NOC has traded 6,589 shares today.
  • NOC is trading at a new lifetime high.

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More details on NOC:

Northrop Grumman Corporation 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 2.1%. NOC has a PE ratio of 13.8. Currently there is 1 analyst that rates Northrop Grumman a buy, no analysts rate it a sell, and 13 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 $25.6 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.90 and a short float of 1.9% with 4.17 days to cover. Shares are up 0.9% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 72.47% over the past year, a rise that has exceeded that of the S&P 500 Index. 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 17.6% 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 $7.80 versus $7.43 in the prior year. This year, the market expects an improvement in earnings ($8.15 versus $7.80).
  • The debt-to-equity ratio is somewhat low, currently at 0.63, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.38, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to $950.00 million or 16.99% when compared to the same quarter last year. Despite an increase in cash flow, NORTHROP GRUMMAN CORP's average is still marginally south of the industry average growth rate of 19.83%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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