Is Northrop Grumman On the Rise?

Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.

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Northrop Grumman is reporting an increase in earnings at an average of 14.3% per year, while the Aerospace & Defense industry’s earnings grew by 6.1% yearly. Its revenues have been rising by an average of 4.7% annually. This data is based on Simply Wall St., a website that provides financial information. Northrop Grumman’s return on equity is 30%, and its net margins are 12.3%.

Northrop Grumman Group has negative shareholder equity of -$4.4 Billion and a high debt level of $34.6 Billion, according to Simply Wall St. This results in a debt-to-equity ratio of -790.1%. NOC stock’s total assets and total liabilities are $67.3 Billion and $71.6 Billion respectively. Its EBIT is $5.2 Billion, which gives it an interest coverage ratio of 3.2. NOC stock has $12.1 Billion in cash and short-term investments.

The market capitalization of Northrop Grumman Stock is $67.625 Billion and the total revenue is $36.602 Billion. Moreover, the stock’s basic EPS is $30.37 and the price-to-earnings ratio is 15.14. The trading volume is 1.72 Million which is higher than the usual 741.656K showing that bulls are trying to maintain their position. But, if the bulls lose strength and the sellers increase, the volume might also drop in the stock.

The stock has performed poorly this month, dropping by 0.65% and rising by 2.80% in the last half-year. Northrop Grumman Corporation (NYSE: NOC) stock has a negative year-to-date return of 18.28% and a 1-year return of 0.06%.

Technical Analysis of NOC Stock Price in 1-D Time Frame

The price action shows that Northrop Grumman Corporation (NYSE: NOC) stock price has been making lower lows and lower highs since the start of the year 2023 and the NOC price declined significantly. 

At the time of writing, the NOC stock price is facing resistance from the trendline and is trading within the contraction zone at around $445.31. Therefore, if the NOC price holds the CMP level, then the price may go up and reach the targets of $463.47 and $482.51. 

However, if the NOC price is rejected from the CMP level and falls, then it may reach the nearest support levels of $429.04 and $414.48.

At the time of publishing, Northrop Grumman Corporation (NYSE: NOC) is trading below the 20, 50, 100, and 200-day EMAs (Exponential Moving Average), rejecting the Northrop Grumman Stock price trend. Hence, NOC stock price is expected to move downwards giving bearish signals over the daily time frame chart.

The current value of RSI is 44.46 points. The 14 SMA is at the median line at 50.21 points which indicates that the price is bearish as the RSI line took rejection from the 14 SMA line.

The MACD line at 0.0039 and signal line at 0.3333 are below the zero line and a bearish crossover was observed in the MACD oscillator which signals more bearishness for the NOC share price.

Summary

Northrop Grumman Corporation (NYSE: NOC) shows that the investors and traders of the stock are bearish on the 1-D time frame. The NOC price action highlights a bearish outlook at the time of publishing. The technical parameters of the Northrop Grumman stock price also support the bearish trend. The major indicators MACD, RSI, and EMA are giving negative signals and imply that the downtrend may continue in the NOC stock price.

Technical Levels

• Support Levels: The nearest support levels are $429.04 and $414.48.
• Resistance levels: The nearest resistance levels are $463.47 and $482.51.

Disclaimer

In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.