Northrop Grumman’s NOC robust presence in the aerospace market, solid liquidity and low debt are strong positives. Given its growth prospects, NOC makes for a solid investment option in the Aerospace sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History of NOC
The Zacks Consensus Estimate for 2026 earnings per share is pegged at $27.95, which indicates year-over-year growth of 6.1%.
The consensus estimate for 2026 sales is $43.97 billion, which indicates year-over-year growth of 4.8%.
NOC’s long-term (three-to-five years) earnings growth rate is pegged at 5.3%.
It delivered an average earnings surprise of 7.11% in the last four quarters.
NOC Stock’s Debt Position
Currently, the company’s total debt-to-capital is 45.71%, better than the industry’s average of 47.13%.
NOC’s times interest earned (TIE) ratio at the end of the first quarter of 2026 was 9.23. A TIE ratio of more than one indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
NOC’s Liquidity
NOC’s current ratio at the end of the first quarter of 2026 was 1.15. A current ratio greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.
NOC’s Strong Defense Position Supports Long-Term Growth
Northrop Grumman is well-positioned to capitalize on rising global defense spending and growing demand for advanced military capabilities. The company ended the first quarter of 2026 with a robust backlog of $95.61 billion, providing strong revenue visibility, with approximately 35% expected to convert into sales over the next 12 months and nearly 60% over the next two years. Continued contract wins across high-priority areas, including missile defense, unmanned aircraft, defense electronics, space systems and cyber security, should support steady organic growth in the years ahead.
The company is also expected to benefit from increasing U.S. defense investments and expanding international opportunities. Higher Pentagon funding is likely to drive demand for Northrop Grumman's advanced missile warning satellites, air and missile defense systems and other critical defense technologies, particularly as the U.S. government remains focused on strengthening national security. At the same time, allied nations are increasing investments in integrated air and missile defense, ground-based radars and Intelligence, Surveillance and Reconnaissance (ISR) capabilities. With defense products serving customers in 25 countries and growing opportunities across Europe and the Middle East, Northrop Grumman remains well-positioned to capitalize on rising global demand for advanced defense solutions.
NOC Stock’s Price Performance
Shares of NOC have gained 3.3% in the past year compared with the industry’s 4.2% growth.
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Other Stocks to Consider
Some other top-ranked stocks from the same sector are Heico HEI, Woodward WWD and Archer Aviation ACHR. HEI currently sports a Zacks Rank #1 (Strong Buy). WWD and ACHR carry a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Heico delivered an average earnings surprise of 13.82% in the last four quarters. The consensus estimate for HEI’s fiscal 2026 earnings stands at $5.78 per share, which suggests year-over-year growth of 18%.
Woodward delivered an average earnings surprise of 16.97% in the last four quarters. The Zacks Consensus Estimate for WWD’s fiscal 2026 earnings is pinned at $9.34 per share, which indicates year-over-year growth of 35.6%.
Archer Aviation delivered an average earnings surprise of 7.89% in the last four quarters. The consensus estimate for ACHR’s 2026 loss is pegged at $1.02 per share.
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Northrop Grumman Corporation (NOC): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).