Northrop Grumman Stock: Is NOC Outperforming the Industrial Sector?

Falls Church, Virginia-based Northrop Grumman Corporation (NOC) is an aerospace and defense technology company with a market cap of $102.8 billion. It provides products such as stealth aircraft, autonomous systems, missile defense solutions, radar and cybersecurity technologies, and space satellites and launch systems.

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and NOC fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the aerospace & defense industry. The company is heavily investing in Digital Engineering, which has allowed it to design and test new systems in virtual environments before physical prototyping.

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This aerospace and defense giant is currently trading 2.8% below its 52-week high of $745.55, reached on Feb. 19. Shares of NOC have surged 27.7% over the past three months, outperforming the State Street Industrial Select Sector SPDR ETF’s (XLI) 15.9% uptick during the same time frame.

Moreover, on a YTD basis, shares of NOC are up 27%, compared to XLI’s 14.2% rise. In the longer term, NOC has soared 57.5% over the past 52 weeks, outpacing XLI’s 31.7% gain over the same time frame.

To confirm its bullish trend, NOC has been trading above its 200-day moving average since mid-June, with slight fluctuations, and has remained above its 50-day moving average since mid-December.

On Jan. 27, shares of NOC rose 2.7% after the company reported better-than-expected fourth-quarter results. Driven by solid revenue growth across all reporting segments, its net sales climbed 9.6% year over year to $11.7 billion, slightly exceeding consensus estimates. Additionally, supported by strong operating income growth in its aeronautics, mission, and space systems divisions, adjusted EPS came in at $7.23,  up 13.1% compared to the prior-year quarter and 3.3% above analyst forecasts.

NOC has outperformed its rival, Lockheed Martin Corporation (LMT), which surged 47.4% over the past 52 weeks. However, it has lagged behind LMT’s 36.1% rise on a YTD basis.