Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. The company's Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems. Its Defense Systems segment designs, develops, integrates, and produces tactical weapons and missile defense solutions, and provides sustainment, modernization, and training services for manned and unmanned aircraft and electronics systems. It also offers integrated, all-domain command, and control battle management systems, precision strike weapons; high speed air-breathing and hypersonic systems; high-performance gun systems, ammunition, precision munitions and advanced fuzes; aircraft and mission systems logistics support, sustainment, operations and modernization; and warfighter training services. The company's Mission Systems segment offers command, control, communications and computers, intelligence, surveillance, and reconnaissance systems; radar, electro-optical/infrared and acoustic sensors; electronic warfare systems; advanced communications and network systems; cyber solutions; intelligence processing systems; navigation; and maritime power, propulsion, and payload launch systems. Its Space Systems segment offers satellites, spacecraft systems, subsystems, sensors, and payloads; ground systems; missile defense systems and interceptors; launch vehicles and related propulsion systems; and strategic missiles. Northrop Grumman Corporation was founded in 1939 and is based in Falls Church, Virginia.

Northrop Grumman Corporation

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco Aerospace & Defense ETF (Symbol: PPA) where we have detected an approximate $228.7 million dollar inflow -- that's a 3.3% increase week over week in outstanding units (from 43,640,000 to 45,100,000). Among the largest underlying components of PPA, in trading today Northrop Grumman Corp (Symbol: NOC) is up about 0.5%, General Dynamics Corp (Symbol: GD) is up about 0.5%, and L3Harris Technologies Inc (Symbol: LHX) is higher by about 0.8%. For a complete list of holdings, visit the PPA Holdings page » The chart below shows the one year price performance of PPA, versus its 200 day moving average:
Looking at the chart above, PPA's low point in its 52 week range is $100.39 per share, with $160.495 as the 52 week high point — that compares with a last trade of $157.56. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Notable ETF Inflow Detected - PPA, NOC, GD, LHX

Textron Inc.’s TXT subsidiary, Textron Systems Corporation, recently revealed that it has secured a contract from Arco Worldwide Services to supply its Aerosonde vertical takeoff and landing (“VTOL”) unmanned aircraft system (“UAS”) to Tantita Security Services.
The deal involves the delivery of three Aerosonde Mk. 4.7 VTOL UAS in a fully International Traffic in Arms Regulations-free configuration, enabling easy export to international customers. These aircraft are expected to enhance security capabilities for protecting Nigeria’s critical oil and gas infrastructure.
The contract also includes options for training and additional aircraft to support planned capability expansion and builds on a previous Foreign Military Sale contract with Nigeria.
Overview of TXT’s Aerosonde UAS
TXT’s Aerosonde UAS delivers multi-mission capability, drawing on a proven family of systems that have logged more than 700,000 flight hours in some of the world’s most demanding environments. It has been deployed globally and currently operates on more than 10 U.S. Navy ships. The system supports a variety of payload configurations, offering both VTOL and fixed-wing options.
With its enhanced size, weight and power capacity, the UAS can perform day-and-night imaging, communications relay, signals intelligence and an additional customer-selected payload all within a single sortie.
Growth Potential for TXT and Other Defense Stocks
With rapid technological advancements, the UAS has increasingly become a crucial component of national defense strategies. Its demand has been rising recently due to low operational costs, zero risk to personnel and superior surveillance capabilities.
Per a report by the Mordor Intelligence firm, the military unmanned aerial vehicles (“UAV”) market is projected to witness a CAGR of 11.9% during 2025-2030. These positive industry trends are likely to provide significant growth opportunities for Textron in the years ahead.
Considering the solid growth opportunities offered by the global UAV market, other defense primes like The Boeing Company BA, Lockheed Martin Corp. LMT and Northrop Grumman Corp. NOC should also benefit.
Boeing offers a comprehensive portfolio of UAS, delivering intelligent, persistent, and efficient solutions for diverse missions and customers worldwide. Its MQ-28 is an uncrewed collaborative combat aircraft that leverages advanced human-machine technology as a force multiplier. Designed to operate alongside existing military aircraft, it enhances operational effectiveness, endurance and survivability in highly contested environments.
BA boasts a long-term (three to five years) earnings growth rate of 31.33%. The Zacks Consensus Estimate for 2025 sales stands at $87.26 billion, which calls for an increase of 31.2%.
Lockheed Martin provides cutting-edge autonomous systems to the U.S. military and allied forces, designed to fulfill the needs of the most demanding missions. The Stalker is a compact, quiet and operationally proven Group 2 UAS, offering exceptional long-endurance imaging capabilities in diverse contested environments and is actively employed by Special Forces globally.
LMT has a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales stands at $74.44 billion, which implies a jump of 4.8%.
Northrop Grumman is a leading provider of autonomous systems, offering a robust portfolio of UAVs. Some of its products include Global Hawk, MQ-4C Triton, Bat Unmanned Air System, and NATO Alliance Ground Surveillance.
NOC has a long-term earnings growth rate of 4.19%. The Zacks Consensus Estimate for 2025 sales stands at $41.88 billion, which suggests an increase of 2.1%.
TXT Stock Price Movement
In the past three months, shares of Textron have risen 4.1% compared with the industry’s growth of 3.2%.
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TXT’s Zacks Rank
Textron currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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TXT to Supply Aerosonde VTOL UAS to Tantita Security Services

Defense stocks, particularly those with European exposure, fell sharply on Dec 15, 2025 (as reported by CNBC), after President Zelenskyy indicated that Ukraine is willing to forgo its long-term NATO membership bid in exchange for security guarantees.
This news, while sparking hopes of progress toward a peace framework, cooled near-term demand expectations for Europe’s arms makers, resulting in share price dips.
For investors, this pullback opens a classic buy-the-dip window in diversified defense exchange-traded funds (ETFs) that spread risk across U.S. and European names instead of relying on a handful of single stock bets. Diversified ETFs allow exposure to structurally rising defense budgets, NATO’s higher spending targets, and ongoing geopolitical flashpoints while cushioning idiosyncratic drawdowns in individual stocks.
Understanding the Recent Slide in European Defense Stocks
The recent sell-off in European defense giants, such as Rheinmetall RNMBY, Leonardo DRS, and Saab SAABY, is a textbook example of market sentiment reacting to geopolitical optics.
Defense stocks, particularly in Europe, are highly sensitive to any news suggesting a possible reduction in conflict intensity or military urgency. President Zelenskyy's pivot on NATO membership, framed within ongoing peace discussions, introduced a narrative of potential conflict resolution. This directly challenged the "war footing" demand environment that has buoyed the sector since 2022, leading to a swift sell-off in pure-play defense names like RNMBY and SAABY.
What Lies Ahead for Defense?
A prudent investor knows that despite the current wobble, the long-term investment thesis for global defense remains robust and is supported by structural, rather than transitory, factors.
In fact, even without a NATO bid, Ukraine is negotiating for "NATO-style" security guarantees, which will require European nations to serve as permanent military guarantors. This necessitates sustained, high-level spending on equipment and readiness that far outlasts the current conflict.
Meanwhile, the war in Ukraine has fundamentally and permanently reshaped European security policy, acting as a powerful catalyst for sustained budget increases. To this end, it is imperative to mention that the total military expenditure of NATO members in 2024 reached $1.45 billion, which reflects an increase of 9.6% from 2023 when adjusted for inflation and represents the biggest annual increase in defense spending since 2014. This surely underpins multi year revenue visibility for the entire defense sector.
One must also consider the fact that the Ukraine conflict is just one facet of a world where geopolitical tensions are intensifying globally with each passing day. Concurrent pressures in the Indo-Pacific and the Middle East are driving allied nations like Japan, South Korea, and Gulf states to similarly bolster their military capabilities.
This creates a diversified global demand base for leading defense contractors, such as Lockheed Martin LMT, RTX Corp. RTX, and Northrop Grumman NOC, which rely on multi-year government contracts, providing strong revenue visibility and order backlogs that insulate them from short-term market fluctuations. Thus, the defense sector's long-term growth remains anchored in a structural, global demand for national security, rather than the headlines of any single conflict.
Defense ETFs to Watch
Given the ongoing negotiations and discussions on NATO-style security guarantees for Kyiv, investors may want to keep the following defense ETFs on their watchlist and consider investing if appropriate.
State Street SPDR S&P Aerospace & Defense ETF XAR
This fund, with assets under management (AUM) worth $4.75 billion, provides exposure to 40 large, mid and small cap aerospace and defense stocks. Its top three holdings include prominent defense contractors Rocket Lab RKLB (4.03%), Karman Holdings KRMN (3.78%) and ATI Inc. ATI (3.66%).
XAR has surged 48.3% year to date. The fund charges 35 basis points (bps) as fees.
iShares U.S. Aerospace & Defense ETF ITA
This fund, with assets worth $12.96 billion, offers exposure to 41 U.S. companies that manufacture commercial and military aircraft and other defense equipment. Its top three holdings include prominent defense contractors GE Aerospace GE (21.65%), RTX (16.17%) and Boeing BA (8.04%).
ITA has surged 50.2% year to date. The fund charges 38 bps as fees.
Invesco Aerospace & Defense ETF PPA
This fund, with market value worth $6.95 billion, offers exposure to 59 companies involved in the development, manufacturing, operations and support of U.S. defense, homeland security and aerospace operations. Its top three holdings include renowned defense contractors RTX (8.71%), BA (8.16%) and GE (7.85%).
PPA has surged 38.6% year to date. The fund charges 58 bps as fees.
Select STOXX Europe Aerospace & Defense ETF EUAD
This fund, with $1.04 billion in assets, provides exposure to 13 European companies focused on the manufacture, service, supply, and distribution of civil and military aerospace equipment, systems, and technology, as well as defense and protective services equipment and solutions. Its top three holdings include renowned defense contractors Airbus EADSY (19.05%), Rolls-Royce RYCEY (18.42%) and Safran SAFRY (18.25%).
EUAD has rallied 72.7% year to date. The fund charges 50 bps as fees.
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Ukraine Ditches NATO Membership Bid: A Defense ETF Buying Opportunity?

RTX Corporation’s RTX business segment, Raytheon, recently secured a contract to provide technical and design agent engineering support for the Evolved SeaSparrow Missile (“ESSM”) and NATO SeaSparrow Missile Systems programs. The deal has been provided by the Naval Sea Systems Command, Washington, D.C.
The contract, worth nearly $104.1 million, is slated for completion by Dec. 31, 2026. A major portion of the work related to this deal will be carried out in Tucson, AZ, and Portsmouth, RI.
This contract combines purchases for the U.S. Navy along with the governments of many other countries.
An Overview of RTX’s ESSM Missiles
RTX’s ESSM missile has established itself as a benchmark international production and development program, meeting the requirements of both partner navies and third-party customers. The missile is deployed across multiple combat systems, radar, fire-control and launcher configurations at sea.
ESSM delivers dependable ship self-defense against agile, high-speed, low-altitude anti-ship cruise missiles, low-velocity aerial threats such as helicopters and fast, maneuverable surface threats. With more than 330 successful live firings at sea, ESSM is a proven and highly reliable defense solution against a broad and challenging threat spectrum. These strong capabilities are likely to keep boosting sustained demand for the missile.
Growth Potential for RTX
Rising regional conflicts worldwide are driving nations to bolster their defense capabilities. With missiles playing a vital role in modern military arsenals, countries are ramping up investments in advanced missile systems for both defensive and deterrence needs.
The Mordor Intelligence firm predicts that theglobal marketfor missiles and missile defense systems will witness a CAGR of 4.97% between 2025 and 2030. This outlook bodes well for RTX, which boasts a diverse portfolio of combat-proven missiles such as the SM-6, National Advanced Surface-to-Air Missile System, Tomahawk cruise missile, SM-2, AIM-9X Sidewinder, Naval Strike Missile and a few more.
Opportunities for Other Defense Companies
Other defense contractors poised to benefit from the growth opportunities in the missiles and missile defense systems market include the following:
Northrop Grumman Corp. NOC: The company provides high-speed, long-range strike weapons like the AARGM-ER, a supersonic, air-launched tactical missile. It also designs and manufactures warheads, fuses, advanced high-speed propulsion systems and other critical missile components.
NOC has a long-term (three to five years) earnings growth rate of 4.19%. The Zacks Consensus Estimate for 2025 sales stands at $41.88 billion, which calls for an increase of 2.1%.
Lockheed Martin Corp. LMT: The company’s Missiles and Fire Control segment focuses on the development, production and sustainment of advanced missile and rocket systems. Its prominent offerings include the PAC-3 missile family, Spike NLOS, the Precision Strike Missile and the Terminal High Altitude Area Defense and a few more.
LMT has a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales stands at $74.44 billion, which calls for an increase of 4.9%.
The Boeing Company BA: The company provides air and missile defense solutions to the United States, allied nations and international partners, with a portfolio that includes advanced systems such as Aegis Ballistic Missile Defense and Ground-Based Midcourse Defense.
BA boasts a long-term earnings growth rate of 31.33%. The Zacks Consensus Estimate for 2025 sales stands at $87.26 billion, which implies a jump of 31.2%.
RTX Stock Price Movement
In the past six months, RTX shares have risen 26.8% compared with the industry’s growth of 13.1%.
Image Source: Zacks Investment Research
RTX’s Zacks Rank
RTX 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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RTX Secures $104M ESSM Deal, Strengthens Global Missile Leadership

L3Harris Technologies, Inc. LHX recently revealed that it has secured a deal from the Space Development Agency (“SDA”) to develop 18 infrared satellites for the Tranche 3 Tracking Layer. Valued at up to $843 million, the deal also covers ground software, operations and sustainment functions.
Following the news release, the company's share price rose 2.7% to reach $295.10 on Dec. 22, 2025.
These tracking layer satellites will strengthen the SDA’s Proliferated Warfighter Space Architecture (“PWSA”), enhancing the U.S. military’s ability to detect and defend against advanced missile threats, including hypersonic missiles.
LHX’s Space-Based Missile Defense Expertise
L3Harris’ space superiority capabilities underpin space domain control, protecting vital assets and preserving strategic advantages. A long-standing partner of the U.S. Space Force and other agencies, the company has supported space superiority missions for more than three decades.
L3Harris continues to drive innovation in the space sector with responsive, agile, and cost-efficient missile warning and defense solutions. As global threats intensify, the company is well-positioned to deliver multi-domain, layered capabilities to detect, track and defeat evolving threats.
The L3Harris Tranche 3 Tracking Layer solution offers higher-resolution infrared sensing, advanced on-orbit data processing and real-time detection algorithms to enhance missile-tracking capabilities. Once deployed, these satellites will integrate with the SDA’s PWSA, enabling broader coverage and stronger direct-to-warfighter connectivity.
L3Harris supports the SDA’s Tracking Layer across all existing PWSA tranches. The company currently has four missile-tracking satellites in orbit under Tranche 0, with an additional 34 satellites under development across Tranche 1 and Tranche 2.
Growth Potential for LHX & Other Defense Stocks
The military satellite market is advancing rapidly, driven by the rising demand for enhanced communication, surveillance and reconnaissance, along with greater resilience against future threats. To this end, per a report by Mordor Intelligence, the military satellite market is projected to witness a CAGR of 10% during 2025-2030. This favorable market outlook is expected to benefit L3Harris, a leading provider of space-based defense solutions.
Given the strong growth outlook for the military satellite market, other defense majors such as Lockheed Martin Corp. LMT, Northrop Grumman Corp. NOC and Airbus SE EADSY, which have a significant presence in this domain, are also well-positioned to benefit.
Lockheed Martin leverages advanced technologies to develop layered space defense capabilities. Its LM 400 multi-mission satellite can be customized for a wide range of missions, offering a highly flexible bus architecture that enables faster deployment at lower price points while supporting data transport, missile warning and tracking operations.
LMT has a long-term (three to five years) earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales stands at $74.40 billion, which calls for an increase of 4.7%.
Northrop Grumman’s military satellite communication solutions are backed by more than 40 years of mission expertise. Its Protected Tactical SATCOM Rapid Prototype is specifically designed to provide uninterrupted, real-time connectivity to warfighters, even under intense and advanced jamming conditions.
NOC has a long-term earnings growth rate of 4.19%. The Zacks Consensus Estimate for 2025 sales is pegged at $41.88 billion, which implies a rise of 2.1%.
Airbus, through its military satellite communications, offers a comprehensive portfolio that includes SATCOMBw, Syracuse 4A and 4B, and Skynet systems. The company has been a long-term operator of the SATCOMBw secure satellite communications system for the German Armed Forces.
EADSY has a long-term earnings growth rate of 21.48%. The Zacks Consensus Estimate for 2025 sales is pinned at $87.56 billion, which suggests a jump of 17.1%.
LHX Stock Price Movement
In the past six months, shares of L3Harris have risen 19.6% compared with the industry’s growth of 13.9%.
Image Source: Zacks Investment Research
LHX’s Zacks Rank
LHX 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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L3Harris Wins $843M Deal to Produce 18 Infrared Satellites for SDA

Shares of Rocket Lab USA (NASDAQ: RKLB) are flying on Tuesday. The stock is up 28.3% as of 2 p.m. ET but was up as much as 31.8% earlier in the day. The leap comes as the S&P 500 and the Nasdaq Composite gained 0.9% and 0.6%, respectively.
Rocket Lab is benefiting from several catalysts at once, but chief among them was President Donald Trump's announcement Monday that he will prioritize a mission to Mars.
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In his inauguration speech, Trump announced his intention to put Americans on Mars, saying, "it is time for us to once again act with courage, vigor, and the vitality of history's greatest civilization," and that "we will pursue our manifest destiny into the stars, launching American astronauts to plant the Stars and Stripes on the planet Mars."
The proclamation, especially given its place in the inaugural speech, sent space stocks soaring.
Rocket Lab surpasses another milestone
The launch system specialist announced Friday that its Pioneer spacecraft is successfully orbiting the globe after its launch on Jan. 14. Developed in collaboration with NASA, this is the second successful mission for the Pioneer module. The craft is designed to provide critical functions like power, communications, propulsion, and attitude control to another spacecraft.
Rocket Lab gets a new price target
Analysts at Citi recently reaffirmed Rocket Lab's buy rating, raising their price target from $22 to $35. The new target represents a 14% upside from its current level.
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Why Rocket Lab Stock Is Skyrocketing Today

RTX Corporation’s RTX business segment, Raytheon, recently won a $168.1 million contract for its Patriot air and missile defense systems fire unit. The award has been provided by the Army Contracting Command, Redstone Arsenal, AL.
Work related to this deal will be primarily executed in Andover, MA. The contract is expected to be completed on Sept. 30, 2029.
Growth Prospects for RTX
Rapidly rising geopolitical tensions and heightened regional conflicts in several parts of the world have driven countries to strengthen their defense capabilities. Since a significant portion of a country's defense arsenal consists of missiles, nations are heavily investing in sophisticated missile systems for defense and deterrence. This, in turn, has been benefiting RTX, a renowned missile maker. The latest contract win is an example of that.
In particular, RTX’s Patriot is a long-range, high-altitude and all-weather missile defense system, intended to counter tactical ballistic missiles, cruise missiles and sophisticated fighter aircraft. The robust demand for Patriot missiles in the defense sector is demonstrated by the fact that 19 nations are currently using PATRIOT for their integrated air and missile defense.
The Mordor Intelligence firm predicts theglobal marketfor missiles and missile defense systems will witness a CAGR of 4.97% between 2025 and 2030. This should significantly benefit RTX, which has a handful of combat-proven missiles in its product portfolio, such as the SM-6 missile, Guidance Enhanced Missile, the National Advanced Surface-to-Air Missile System, Tomahawk, Standard Missile 2, AIM-9X Sidewinder missiles and a few more, in addition to Patriot.
Opportunities for Other Defense Stocks
As global threats rise, military contractors that are expected to gain from the growth prospects presented by the missiles and missile defense system market are as follows:
The Boeing Company BA: The company has been continuously providing air and missile defense systems to the United States, its allies and international partners. The company’s offerings include the Avenger Air Defense System, Aegis Ballistic Missile Defense and Ground-Based Midcourse Defense.
Boeing boasts a long-term (three to five years) earnings growth rate of 31.%. The Zacks Consensus Estimate for BA’s 2025 sales implies growth of 31.3% from the estimated figure of 2024.
Northrop Grumman NOC: The company provides high-speed, long-range strike weapons like 3the AARGM-ER, which is a supersonic, air-launched tactical missile system. It also develops and manufactures warheads, fuses, advanced high-speed propulsion systems and other missile components.
Northrop has a long-term earnings growth rate of 4.2%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates growth of 2.1% from the estimated figure of 2024.
Lockheed Martin LMT: The company’s Missiles and Fire Control business unit develops, manufactures and supports advanced missiles and rockets. Some of its renowned products are the PAC-3 family of missiles, M270, Reduced-Range Practice Rocket and Terminal High Altitude Area Defense.
Lockheed has a long-term earnings growth rate of 11.9%. The Zacks Consensus Estimate for LMT’s 2025 sales indicates growth of 4.7% from the estimated figure of 2024.
RTX Stock’s Price Movement
In the past six months, RTX shares have risen 21.7% compared with the industry’s growth of 8%.
Image Source: Zacks Investment Research
RTX’s Zacks Rank
RTX 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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RTX's Unit Secures a Contract to Support the Patriot Missile

General Dynamics Corp.’s GD business unit, General Dynamics Information Technology (“GDIT”), recently won a $285 million contract to deliver cybersecurity services aimed at strengthening the Commonwealth of Virginia’s cybersecurity infrastructure.
Under the contract, GDIT will deploy its Eclipse Defensive Cyber and Everest Zero Trust Digital Accelerators to provide end-to-end cybersecurity services, including vulnerability management, zero-trust solutions and a 24/7 security operations center for the Virginia Information Technologies Agency.
To enhance security across the state’s digital infrastructure, GDIT will use artificial intelligence (AI) to automate security monitoring, integrate advanced cybersecurity tools and improve threat detection capabilities. The company will also support VITA’s post-quantum cryptography initiatives to protect sensitive data from future quantum computing risks, strengthen encryption standards and ensure a secure transition to quantum-resilient systems.
GD’s Proven Capabilities in Providing Cybersecurity Solutions
As defense sectors increasingly prioritize secure data transmission, contractors such as General Dynamics are seeing strong contract momentum, driven by demand for enhanced cybersecurity capabilities.
GDIT’s Everest Zero Trust solution offers a robust framework for secure data sharing and real-time identity and device management while leveraging advanced AI for proactive threat detection and analysis. It enables secure, real-time collaboration across agencies and partners, ensuring sensitive information is exchanged efficiently and safely, even in complex, multi-jurisdictional operations.
Meanwhile, its Eclipse Defensive Cyber solution delivers a comprehensive suite of strategies and technologies for real-time threat detection, advanced incident response and remediation, along with automated threat mitigation and continuous monitoring and reporting.
These capabilities position GDIT well to secure additional contracts similar to the latest award, supported by the expanding defense cybersecurity market, which is expected to drive its future revenue growth.
Growth Trajectory for GD and Other Defense Stocks
The defense cybersecurity market outlook remains strong, supported by the increasing frequency and sophistication of cyberattacks. To this end, per a report by Mordor Intelligence, the defense cybersecurity market is expected to witness a CAGR of 11.87% during 2025-2030.
Such a solid market prediction offers strong growth opportunities to General Dynamics, with its GDIT unit well-positioned to deliver agile and proactive cybersecurity solutions amid the evolving tactics and techniques used by threat actors.
Other defense contractors that are expected to enjoy the perks of the growing defense cybersecurity market are as follows:
Northrop Grumman Corp. NOC: It delivers resilient, end-to-end cyber solutions across all domains, providing a decisive advantage by equipping cyber warfighters with both defensive and offensive capabilities to counter evolving threats. Its offerings include the Cyberdefense Platform for Weapon Systems, which uses advanced AI/ML techniques to detect threats within mission and weapon systems that are currently undetectable by traditional network-based IDS solutions.
NOC has a long-term (three to five years) earnings growth rate of 4.19%. The Zacks Consensus Estimate for 2025 sales is pegged at $41.88 billion, which calls for a jump of 2.1%.
Lockheed Martin Corp. LMT: It remains a leading defense technology provider, delivering comprehensive cyber systems to defense and global security customers. LMT’s MR2 platform supports the U.S. military’s digital transformation by providing real-time insights into workforce training and readiness.
LMT has a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales is pegged at $74.40 billion, which indicates a rise of 4.7%.
BAE Systems plc BAESY: The company develops a portfolio of advanced cybersecurity technologies. Its offerings include one-way transfer devices, guards and Field Programmable Gate Arrays such as the XTS Diode Solution, which enables secure transfer of streaming data or files between networks.
BAESY boasts a long-term earnings growth rate of 14.57%. The Zacks Consensus Estimate for 2025 sales is pegged at $40.47 billion, which suggests an increase of 62%.
GD Stock Price Movement
In the past six months, shares of General Dynamics have risen 20.8% compared with the industry’s growth of 10.3%.
Image Source: Zacks Investment Research
GD’s Zacks Rank
General Dynamics 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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General Dynamics Wins a $285M Deal to Provide Cybersecurity Services

Shareholders of Northrop Grumman Corp (Symbol: NOC) looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the January 2028 covered call at the $720 strike and collect the premium based on the $40.00 bid, which annualizes to an additional 3.3% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 5% annualized rate in the scenario where the stock is not called away. Any upside above $720 would be lost if the stock rises there and is called away, but NOC shares would have to climb 25.9% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 33% return from this trading level, in addition to any dividends collected before the stock was called.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Northrop Grumman Corp, looking at the dividend history chart for NOC below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 1.6% annualized dividend yield.
Below is a chart showing NOC's trailing twelve month trading history, with the $720 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2028 covered call at the $720 strike gives good reward for the risk of having given away the upside beyond $720. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for Northrop Grumman Corp (considering the last 250 trading day closing values as well as today's price of $569.39) to be 28%. For other call options contract ideas at the various different available expirations, visit the NOC Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Tuesday, the put volume among S&P 500 components was 697,243 contracts, with call volume at 1.29M, for a put:call ratio of 0.54 so far for the day. Compared to the long-term median put:call ratio of .65, that represents very high call volume relative to puts; in other words, buyers are preferring calls in options trading so far today. Find out which 15 call and put options traders are talking about today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

YieldBoost NOC From 1.6% To 5% Using Options

Investors in Northrop Grumman Corporation NOC need to pay close attention to the stock based on moves in the options market lately. That is because the Jan. 16, 2026 $260 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Northrop Grumman shares, but what is the fundamental picture for the company? Currently, Northrop Grumman is a Zacks Rank #3 (Hold) in the Aerospace – Defense industry that ranks in the Top 29% of our Zacks Industry Rank. Over the last 60 days, no analyst has increased the earnings estimates for the current quarter, while six have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $7.39 per share to $6.91 in that period.
Given the way analysts feel about Northrop Grumman right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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Indicator	TTM Median
P/E	21.37 24.81
Price/Sales	2.09 1.41
P/B	5.37 2.47
P/FCF	66.65 19.54

Indicator	TTM Median
ROE	26.09 15.13
ROA	8.07 6.13
ROI	13.24 9.50
Net Worth	83.49 1.43
Quick Ratio	0.93 1.15
Current Ratio	1.04 1.58

Indicator	TTM Median
Net Profit Margin	9.74 7.26
Operating Margin	10.39 10.13
Gross Margin	19.33 32.40
Return on tangible equity	0.00 26.15

Indicator	TTM Median
EPS	7.11 0.57
EPS Forecast	6.71 0.55
Revenue	10.35B 194.00M
Gross Profit	2.21B —
EBITDA	1.78B —

Northrop Grumman Corporation

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

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Efficiency

Other ratios

Revenue