Northrop Grumman Corporation Stock Analysis - January 2026

Published on January 02, 2026

Company Overview

Northrop Grumman Corporation (NYSE: NOC) is a leading aerospace and defense technology company headquartered in Falls Church, Virginia. Founded in 1939, the company specializes in designing and manufacturing advanced systems across various sectors, including Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. Northrop Grumman serves a diverse clientele worldwide, engaging in markets across Asia/Pacific, Europe, and beyond.

As a key player in the Aerospace & Defense industry--part of the broader Industrials sector--Northrop Grumman stands out for its commitment to innovation, delivering advanced aircraft, unmanned systems, missile defense solutions, and sophisticated command systems. This industry boasts a total revenue generation of approximately $40.93 billion, marking a significant footprint in global economic activity and presenting robust investment opportunities.

52-Week Price Performance Analysis

52-Week Price Performance Chart

In the past year, Northrop Grumman's stock has exhibited an overall bullish trend, characterized by a series of higher highs and higher lows, culminating in a 24% gain. The current stock price of $570.21 is slightly below its fifty-day moving average of $570.74, indicating a minor downward trend relative to this metric. Key price movements in the last 52 weeks have seen the stock reach a high of $640.90 and a low of $426.24.

Key Technical Levels

• Support Level: The critical support level is around $450, where buying interest remains strong. This level indicates strong investor belief in the stock's long-term potential.
• Resistance Level: The stock is currently facing resistance around $570, where the price has struggled to maintain momentum. A double top pattern formed near this resistance level in September and October suggests that overcoming this barrier is essential for further upward price movements.
• Price Momentum: The green trend line reflects the stock's upward trajectory while the price's recent cross above the moving average suggests renewed upward momentum. For bullish investors, a breakout above $570 is crucial, while maintaining levels above the moving average is a positive sign.

Given the volatility witnessed in recent weeks, characterized by sharp price movements, both upward and downward, investors should remain cautious. If the price can breach the $570 resistance with strong trading volume, it could signal a continuation of the bullish trend towards the target high price set by analysts at $770. Conversely, failure to hold above the moving average may lead to a reassessment of support at $500.

Financial Performance and Metrics

Northrop Grumman's financial performance remains robust, with total revenue reported at $40.93 billion. Here are key financial metrics for this period:

• EBITDA: $6.58 billion
• Current Share Price: $570.21
• Outstanding Shares: 142,720,067
• Short Interest: 1,538,336 shares (approximately 0.0108% of the float)

Despite a significant 49% decline in first-quarter earnings for 2025, primarily due to increased manufacturing costs linked to the B-21 program, Northrop Grumman has continued to secure substantial defense contracts. For instance, the company landed a $97.5 million contract for F-35 radar components and a $48.4 million modification for counter-explosive device systems.

Valuation Metrics

Analyst projections indicate:

• Target High Price: $770.00
• Mean Target Price: $662.68
• Median Price Target: $672.00
• Target Low Price: $533.00

This broad range suggests the potential for considerable appreciation or pitfalls, making it critical for investors to monitor performance closely.

Recent News and Developments

The last few months have seen significant news affecting Northrop Grumman's stock performance:

1. All-Time High Reached: On October 7, 2025, the stock reached an all-time high of $626.98, representing a 17.25% increase over the past year and a 33.55% gain year-to-date.

2. Analyst Upgrades:

3. Bernstein raised its price target to $674, linked to anticipated benefits from the 2026 defense budget and specifically increased funding for the Sentinel and B-21 programs.
4. UBS reiterated a Buy rating and set a price target of $690, in light of the expansion of the B-21 Raider program.

5. Morgan Stanley increased its price target to $720, reflecting a growing optimism about the company's prospects.

6. Financial Adjustments: Despite the bright outlook from analysts, a decrease in first-quarter earnings prompted the company to adjust its annual profit forecasts downward, which contributed to a 12% drop in share price following this announcement.

Market Sentiment and Analyst Recommendations

The consensus among analysts is overwhelmingly positive, reflecting a collective optimism regarding Northrop Grumman's prospects. Out of 21 analysts, the recommendation score averages 2.04 on a scale where lower numbers indicate stronger buy sentiments. This recommender sentiment is buoyed by the substantial government contracts the company continues to secure and the expected long-term demand for defense solutions.

Conclusion

Northrop Grumman Corporation stands as a compelling investment opportunity within the Aerospace & Defense sector, bolstered by robust projections for revenue growth, strategic initiatives, and continued investment in advanced technologies. While the stock is currently facing resistance and volatility, the overall upward trend coupled with analyst confidence suggests a favorable outlook. Investors should remain vigilant, assessing both the opportunities for growth and the risks linked to price volatility and production challenges.

With the industry poised for expansion, particularly in sectors linked to national defense, Northrop Grumman may deliver significant returns for investors willing to navigate the complexities of the market.