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 $167.8 million.
- NOC has traded 11,698 shares today.
- NOC is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in NOC with the Ticky from Trade-Ideas. See the FREE profile for NOC NOW at Trade-Ideas 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%. NOC has a PE ratio of 14.5. Currently there are 2 analysts that rate Northrop Grumman a buy, no analysts rate it a sell, and 11 rate it a hold. The average volume for Northrop Grumman has been 1.5 million shares per day over the past 30 days. Northrop Grumman has a market cap of $26.2 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 0.92 and a short float of 2% with 3.10 days to cover. Shares are up 5.6% year-to-date as of the close of trading on Monday. 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, 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 has had sub par growth in net income. Highlights from the ratings report include:
- Compared to its closing price of one year ago, NOC's share price has jumped by 81.93%, exceeding the performance of the broader market during that same time frame. 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.
- The current debt-to-equity ratio, 0.56, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.35, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has increased to $1,204.00 million or 13.90% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 3.40%.
- NORTHROP GRUMMAN CORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NORTHROP GRUMMAN CORP increased its bottom line by earning $8.34 versus $7.80 in the prior year. This year, the market expects an improvement in earnings ($8.95 versus $8.34).
- You can view the full Northrop Grumman Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.