“Is Northrop Grumman Stock a Defensive Stock to Buy Now?”
NOC is a buy (low conviction); DCF fair value $672 > market $542; uncorrelated to macro economy provides diversification.
Defense contractor Northrop Grumman reported a record backlog of over 105 billion dollars. The company's increasing capacity to deliver on that backlog more quickly as its customers are asking for more urgent production capacity.
But does this make Northrop Grumman stock a buying opportunity? Let's take a closer look and answer that question. So this business has grown faster than usual over the previous decade.
In 2017, the company reported 24 billion dollars in revenue and that's increased to 43 billion over the trailing 12-month period. The management team is forecasting 5% revenue growth in 2026 with those figures likely to increase going forward.