Key Stats for Northrop Grumman Stock
- Price change for Northrop Grumman stock: -3%
- $NOC Share Price as of Apr. 24: $575
- 52-Week High: $774
- $NOC Stock Price Target: $722
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Northrop Grumman (NOC) stock fell after Q1 2026 earnings, even though the results were pretty good.
- Sales came in at $9.9 billion, up 4% from a year ago.
- The company posted diluted EPS of $6.14 and pulled in $9.8 billion in new orders.
- Management reaffirmed full-year guidance, keeping the sales outlook at $43.5 to $44 billion.
So what spooked investors? One number in the capital expenditure section.
- Northrop and the U.S. Air Force agreed to boost annual production of the B-21 Raider stealth bomber by 25%.
- That’s good news for the long run, but it means more spending now.
- The company raised its 2026 capital expenditure estimate by $200 million to roughly $1.85 billion.
- On top of that, the total investment required to support the expanded production rate is expected to reach $2.5 billion, mostly in 2027 and 2028.
Northrop Grumman stock dropped as investors focused on the short-term cash flow hit rather than the long-term payoff.
See analysts’ growth forecasts and price targets for Northrop Grumman stock (It’s free) >>>
What the Market Is Telling Us About Northrop Grumman Stock
The selloff in Northrop Grumman stock is less about the business and more about investor patience.
- Morgan Stanley trimmed its price target slightly, from $765 to $745, but kept its view that the stock is a buying opportunity.
- The bank applies a 31x multiple on 2027 free cash flow and sees the near-term spending pressure as temporary.
The underlying business is in strong shape.
- Northrop controls two legs of the U.S. nuclear triad through the B-21 and Sentinel ICBM programs.
- Missile defense now accounts for nearly 10% of company revenue, and that segment is growing fast.
- There’s also a potential catalyst on the horizon: the U.S. Navy is expected to award the F/A-XX fighter contract in August, and Northrop Grumman stock isn’t yet pricing in a possible win.
The market is discounting future returns while fixating on today’s capex.
Morgan Stanley argues that this is exactly the wrong time to sell Northrop Grumman stock.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Northrop Grumman Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
