Home
News
- 1 Northrop Grumman successfully tested their navigation systems recently.
- 2 NOC stock was trading at a market price of $452.45 at publication time.
The global defense and aerospace market is likely to see a rise in mergers and acquisitions according to a tech company ReportLinker. A majority of stocks in the defense market were down yesterday. Northrop Grumman Corp (NYSE: NOC), one of the world’s largest military equipment manufacturers, declined slightly. NOC stock closed at $452.45 yesterday, down by 0.74% since its previous close. The defense stock has been consolidating since the start of the year.
Defense Stocks Plunged on Friday
Defense and aerospace stocks including General Dynamics Corp (NYSE: GD), Boeing Co (NYSE: BA), Raytheon Technologies (NYSE: RTX) and Lockheed Martin Corp (NYSE: LMT) lost 0.60% on average as the market closed for the week. Supply chain issues appear to be a major reason for the decline in prices. Additionally, inflation is pulling material prices up, slowing growth in the highly dynamic sector.
Northrop Grumman successfully tested new navigation systems recently. These navigation systems will replace existing systems initially on fighter aircrafts and later other aircrafts. According to the defence manufacturer’s newsroom, the advanced airborne navigation solution consists of the M-Code technology. ‘M-Code technology enables missions to be conducted in GPS-contested and GPS-denied environments.’
The company’s VP of navigation and cockpit systems, Ryan Arrington, believes it is a crucial step in building their next-gen airborne navigation systems, adding more accuracy to their warfighters.
Stock analyst Simply Wall Street highlights Northrop Grumman has a return on capital employed (ROCE) of 20%. Increased business efficiencies is the likely reason behind the spike in ROCE. Additionally, NOC stock has delivered over 50% profits to the investors in the last five years.
Current profit-earnings ratio of the company has increased from 8.89 in 2021 to 17.34, indicating Northrop is still undervalued. The defense giant has 151.449 Million free floating and 410.475K closely held shares. Currently, it sits atop a market capitalization of $68.709 Billion.
NOC Stock Price Performance
Bollinger bands appear to be closing, indicating a decline in NOC stock price volatility. The bands went through immense tension as the company shares took a 20% nosedive in January 2023. The value has since remained consolidated within the $483 and $430 range.
True strength index (TSI) has been rising since June 2023, carrying itself above the signal line during the period. However, it plunged recently while the price was climbing, signaling a decline that investors witnessed on Thursday and Friday. Stochastic RSI began falling recently while Woodies CCI was near neutral, suggesting that may be choppy ahead. As of now, NOC stock holds a resistance near $460 and a support close to $440.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
