Northrop Grumman NOC is expanding its precision weapons capabilities as military forces seek effective solutions against evolving battlefield threats, including small unmanned aircraft systems. The company is advancing its Precision Grenadier System (PGS), a shoulder-fired 25mm grenade launcher designed to engage targets in close combat, behind cover and in drone-threat scenarios.
The system combines a launcher with programmable 25mm ammunition, letting soldiers engage targets that may be hard to reach with conventional weapons. Its potential role in countering small drones also reflects the growing need for cost-effective solutions against unmanned threats on the battlefield.
Northrop Grumman recently signed a teaming agreement with Barrett Firearms to manufacture the weapon portion of the PGS and integrate the inductive setter used to program its ammunition. Barrett will produce the weapon at its Nashville, TN, facility, supporting the program’s manufacturing and delivery plans.
The partnership combines Northrop Grumman’s ammunition and precision-weapons expertise with Barrett’s firearms manufacturing capabilities. It could help the companies address demand from U.S. and international customers seeking improved infantry capabilities.
As militaries adapt to changing battlefield requirements, demand for programmable ammunition, precision weapons and counter-drone solutions could create opportunities for Northrop Grumman. The PGS program adds to its broader portfolio of advanced weapons designed to improve warfighter effectiveness.
Defense Stocks to Keep on the Radar
Growing demand for precision weapons and counter-drone capabilities could also benefit other defense contractors developing advanced battlefield systems.
RTX Corporation RTX: RTX develops precision-guided weapons and air defense systems, including solutions designed to counter aerial threats. Its missile technologies support military requirements for accurate engagement and improved battlefield protection.
Lockheed Martin LMT: Lockheed Martin produces precision strike weapons and guided munitions for U.S. and allied forces. Its portfolio supports demand for advanced targeting and effective engagement of emerging battlefield threats.
The Zacks Rundown for NOC
Shares of NOC have lost 4.4% in the past three months compared with the industry’s 12.2% decline.
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The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.52X compared with its industry’s average of 2.07X.
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The Zacks Consensus Estimate for NOC’s 2027 earnings has remained the same over the past 60 days.
Image Source: Zacks Investment Research
NOC stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).