Latest news with #NorthropGrumman
Yahoo
an hour ago
- Business
- Yahoo
Wall Street Sees Opportunity in Defense Contractor Stocks on Bright Outlook
(Bloomberg) -- US aerospace stocks have been soaring recently, but analysts see opportunities in a lagging cohort they're often clumped with: defense contractors. Why the Federal Reserve's Building Renovation Costs $2.5 Billion Milan Corruption Probe Casts Shadow Over Property Boom How San Jose's Mayor Is Working to Build an AI Capital The S&P Composite 1500 Aerospace & Defense Index has jumped 40% from its tariff-driven low on April 4, while the S&P 500 has climbed 24% over the same period. The advance has largely been powered by aerospace companies while prominent defense names in the index, such as Northrop Grumman Corp. and Lockheed Martin Corp., have been among the biggest laggards. Uncertainty around US government military spending, tariff concerns and fears of decreased demand from global customers have hurt defense stocks in recent months. While analysts expect a lackluster earnings season for the group, they recommend purchasing any drop in the shares as they see prospects for defense companies improving later this year. 'If you see weakness, use these stocks as a buying opportunity,' said Richard Safran, an analyst at Seaport Research, adding that he's bullish on the defense sector but doesn't expect it to have a good quarter. The analyst favors pure-play names like L3Harris Technologies Inc., Northrop and Lockheed Martin. Northrop and Lockheed are set to kick off earnings for the group on Tuesday. The defense sector could experience growth as soon as the second half of the year, according to RBC Capital Markets analyst Ken Herbert, who cites the full-year 2026 presidential budget request that's now in place, and potential upside from the $150 billion reconciliation bill. Stretched Valuations The aerospace and defense index is trading at 31 times forward earnings, compared to 27 times for the tech-heavy Nasdaq 100. Within the index, the biggest military contractors' valuations are still comparatively lagging. Shares of RTX were trading at 24 times forward earnings as of Friday's close. For Lockheed, 16 times forward earnings, while General Dynamics and Northrop traded around 19. The high valuations of aerospace companies suggest a lot of the good news may already be priced in. Wall Street already anticipates most of these companies to raise forecasts, supported by an improved Boeing Co. production outlook. Upbeat second-quarter results from GE Aerospace last week underscored that bullish sentiment. On the other hand, the brighter outlook for defense stocks in the second half of the year, combined with a significantly lower price tag make them an attractive bet, according to analysts. 'I think the market is underestimating defense spending growth. It's just not being priced in,' Seaport's Safran said. A Rebel Army Is Building a Rare-Earth Empire on China's Border Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 hours ago
- Business
- Bloomberg
Wall Street Sees Opportunity in Defense Contractor Stocks on Bright Outlook
US aerospace stocks have been soaring recently, but analysts see opportunities in a lagging cohort they're often clumped with: defense contractors. The S&P Composite 1500 Aerospace & Defense Index has jumped 40% from its tariff-driven low on April 4, while the S&P 500 has climbed 24% over the same period. The advance has largely been powered by aerospace companies while prominent defense names in the index, such as Northrop Grumman Corp. and Lockheed Martin Corp., have been among the biggest laggards.
Yahoo
a day ago
- Business
- Yahoo
Northrop Grumman's Space Mechanic Clears Milestone in DARPA-Backed Satellite Servicing Program
Northrop Grumman (NYSE:NOC) is one of the best space stocks to buy according to hedge funds. On June 5, 2025, Northrop Grumman's SpaceLogistics division successfully integrated a U.S. Naval Research Laboratory–developed robotics payload, complete with dual arms and advanced electronics, onto its Mission Robotic Vehicle (MRV) spacecraft bus at the Dulles, Virginia facility. This isn't just engineering flex; it's a milestone on the DARPA-led Robotic Servicing of Geosynchronous Satellites (RSGS) program. The MRV is being primed to inspect, repair, relocate, and even attach life-extension pods to GEO satellites once it launches. This matters because commercial satellite-servicing in GEO is no longer sci-fi, it's becoming operational. By enabling satellite longevity and in-orbit upgrades, Northrop positions itself at the center of a burgeoning on-orbit economy. Hedge funds love companies unlocking recurring revenue via infrastructure and tech leadership, and this is textbook. In short, NOC is not just building rockets and fighter jets. It's building a space 'mechanic' that makes revenue from fixing multi-hundred‑million‑dollar assets as they orbit 22,000 miles from Earth. This robotics integration milestone proves they're ready to launch that future. Northrop Grumman is a diversified aerospace and defense powerhouse, designing advanced military aircraft, missile systems, satellites. Its SpaceLogistics arm is pioneering commercial on‑orbit servicing with MRV, pushing the boundary of what's possible in space infrastructure. While we acknowledge the potential of NOC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Nikkei Asia
2 days ago
- Business
- Nikkei Asia
Northrop 'in talks with Japan' about cutting-edge air defense system
Northop Vice President Kenneth Todorov says the system can maintain overall defense capacity even as some equipment is destroyed. (Photo by Sotaro Yumae) SOTARO YUMAE FAIRFORD, U.K. -- Northrop Grumman is talking to Japan about introducing its latest air defense system as the security environment in Asia becomes increasingly tense, Kenneth Todorov, vice president at the U.S. defense company, told Nikkei. Todorov was interviewed at the Royal International Air Tattoo, one of the world's largest military aircraft air shows, that opened Friday here in southern England.
Yahoo
2 days ago
- Business
- Yahoo
Northrop Grumman's Space Mechanic Clears Milestone in DARPA-Backed Satellite Servicing Program
Northrop Grumman (NYSE:NOC) is one of the best space stocks to buy according to hedge funds. On June 5, 2025, Northrop Grumman's SpaceLogistics division successfully integrated a U.S. Naval Research Laboratory–developed robotics payload, complete with dual arms and advanced electronics, onto its Mission Robotic Vehicle (MRV) spacecraft bus at the Dulles, Virginia facility. This isn't just engineering flex; it's a milestone on the DARPA-led Robotic Servicing of Geosynchronous Satellites (RSGS) program. The MRV is being primed to inspect, repair, relocate, and even attach life-extension pods to GEO satellites once it launches. This matters because commercial satellite-servicing in GEO is no longer sci-fi, it's becoming operational. By enabling satellite longevity and in-orbit upgrades, Northrop positions itself at the center of a burgeoning on-orbit economy. Hedge funds love companies unlocking recurring revenue via infrastructure and tech leadership, and this is textbook. In short, NOC is not just building rockets and fighter jets. It's building a space 'mechanic' that makes revenue from fixing multi-hundred‑million‑dollar assets as they orbit 22,000 miles from Earth. This robotics integration milestone proves they're ready to launch that future. Northrop Grumman is a diversified aerospace and defense powerhouse, designing advanced military aircraft, missile systems, satellites. Its SpaceLogistics arm is pioneering commercial on‑orbit servicing with MRV, pushing the boundary of what's possible in space infrastructure. While we acknowledge the potential of NOC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
