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 looks like a high-quality defense business, but based on current metrics, the market is already pricing in a fair amount of optimism. The P/E ratio of 15.38 is noticeably below the industry median, which supports the idea of relative undervaluation on earnings; however, the P/B of 3.84, P/S of 1.61, and P/FCF of 21.34 are above industry benchmarks and limit the potential for revaluation. At the same time, the multiple trend is generally improving: P/E and P/FCF are declining from higher levels, which usually indicates improving earnings quality and free cash flow generation. The company’s profitability is strong: ROE of 26.58%, ROA of 8.93%, and ROI of 14.18% are significantly above the median, while the net margin of 10.48% also looks solid. The gross margin of 20.52% looks weaker, as it is below the industry baseline, indicating pressure on cost of goods sold and limiting room for further margin expansion. The operating margin is around the median, meaning the business is efficient, but without a clear advantage over the best peers. The debt burden is moderate in absolute terms, but the debt/equity ratio of 0.81 is above the industry median, and long-term debt remains significant, so the balance sheet cannot be called risk-free. Liquidity is sufficient, but not comfortable: the quick ratio of 1.06 and current ratio of 1.17 do not provide a large margin of safety. Revenue, EBITDA, operating income, and net income remain at high levels, and growth in shareholders’ equity supports fundamental resilience. The dividend yield of 0.46% is more symbolic for investors and is not a strong valuation driver. Overall, the picture is rather neutral-to-positive in terms of business quality, but with limitations from valuation multiples and a balance sheet that does not justify an aggressive increase in the target valuation. For an investor, this means the company deserves a premium for profitability and stability, but the current price already reflects part of these strengths.

Northrop Grumman Corporation

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Отток средств из лонгов на высоком уровне.

Strong index, flat. Outflow of funds from longs at a high level.

Strong profitability and a low P/E support NOC’s valuation, but expensive P/B and P/FCF ratios, along with moderate leverage, limit upside potential.

The S&P 500 Index ($SPX) (SPY) closed down by -0.25% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.86%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.23%. December E-mini S&P futures (ESZ26) fell -0.25%, and December E-mini Nasdaq futures (NQZ26) rose +0.24%.
Stock indexes settled mixed on Wednesday, with the Dow Jones Industrial falling to a 3.5-month low. Stocks erased early gains as the broader market turned lower, as rising crude oil prices boosted inflation expectations and pushed bond yields higher. WTI crude rose more than +1% on Wednesday, and the 10-year T-note yield climbed to a 19-year high of 5.30%.
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Stocks initially rose on Wednesday as inflation concerns eased after the Q2 core PCE price index was revised lower and the Aug core PCE price index rose less than expected. The better-than-expected inflation news reduced the chance of a Fed rate hike next month to 37% from 52% on Tuesday. Also, signs of growth in the US economy supported stocks after Q2 GDP was revised higher, the Sep ADP employment change rose more than expected, and Aug personal spending rose the most in 5 months. Stocks added to their gains after the Sep MNI Chicago PMI expanded at the strongest pace in 4 months.
Stocks are awaiting Micron Technology's earnings after Wednesday’s close to gauge demand for AI spending.
US MBA mortgage applications fell -6.0% in the week ended September 25, with the purchase mortgage sub-index down -4.3% and the refinancing mortgage sub-index down -8.7%. The average 30-year fixed-rate mortgage rose +18 bp to a 2.75-year high of 7.30% from 7.12% the prior week.
The US Sep ADP employment change rose by +90,000, stronger than expectations of +75,000.
US Aug personal spending rose by +0.9% m/m, right on expectations and the largest increase in five months. Aug personal income rose +0.2% m/m, weaker than expectations of +0.5% m/m.
The US Aug core PCE price index, the Fed's preferred inflation gauge, rose +0.2% m/m and +3.0% y/y, weaker than expectations of +0.3% m/m and +3.3% y/y.
US Q2 GDP was revised upward to +2.2% (q/q annualized), stronger than expectations of no change at +1.5%, as Q2 personal consumption was revised upward to +3.8% from the previously reported +3.4%. The Q2 core PCE price index was revised downward to +3.3% from the previously reported +3.6%.
The US Sep MNI Chicago PMI rose +11.7 to 58.8, stronger than expectations of 51.0 and the fastest pace of expansion in four months.
Positive economic news from China supported global growth prospects and boosted stocks. The China Sep manufacturing PMI rose +0.3 to 50.1, right on expectations. The China Sep non-manufacturing PMI rose +1.2 to 50.2, stronger than expectations of 49.2.
Nov WTI crude oil prices (CLX26) rose more than +1% on Wednesday after Russia announced that it was extending a ban on most diesel exports through October, further tightening theglobal market Russia began its diesel export ban in July after Ukrainian drone and missile attacks damaged Russian refineries. Gains in crude are limited after JPMorgan Chase said Middle East crude exports have rebounded to 17.5 million bpd, or about 98% of pre-war levels, although flows of gasoline, diesel and distillates were at 3 million bpd, or 58% of pre-war levels.
Markets are discounting a 37% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 closed down -0.81%. China's Shanghai Composite closed up +0.31%. Japan's Nikkei-225 Stock Average closed up +1.94%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down -7 ticks on Wednesday. The 10-year T-note yield rose +5.7 bp to 5.293%. Dec T-notes tumbled to a 19-year nearest-futures low on Wednesday, and the 10-year T-note yield rose to a 19-year high of 5.304%. T-notes gave up an early advance on Wednesday and turned lower on stronger-than-expected US economic news, including Q2 GDP, the Sep ADP employment change, and the Sep MNI Chicago PMI. Also, Wednesday’s +1% increase in WTI crude oil raised inflation expectations and weighed on T-notes. The 10-year break-even inflation rate rose to a 2-week high of 2.375% on Wednesday.
T-notes initially moved higher on Wednesday as inflation concerns eased after the Q2 core PCE price index was revised lower and the Aug core PCE price index rose less than expected. The weaker-than-expected inflation readings reduced the chance of a Fed rate hike next month to 37% from 52%. T-notes also have support from some month- and quarter-end buying by bond fund managers on Wednesday as they extend duration in their portfolios.
European government bond yields were mixed on Wednesday. The 10-year German bund yield fell -4.0 bp to 3.586%. The 10-year UK gilt yield matched Monday’s 19-year high of 5.437% on Wednesday and finished up +1.4 bp at 5.424%.
The German Sep unemployment change rose +12,000, showing a weaker labor market than expectations of 500.
German Aug retail sales rose +1.3% m/m, the largest increase in 14 months but slightly weaker than expectations of +1.5% m/m.
German Sep CPI (EU harmonized) rose +0.6% m/m and +3.3% y/y, stronger than expectations of +0.5% m/m and +3.2% y/y, with the +3.3% y/y gain the largest year-on-year increase in 2.75 years.
UK Q2 GDP was revised upward to +0.5% q/q and +1.4% y/y from the previously reported +0.4% q/q and +1.2% y/y.
Markets are discounting a 26% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Software stocks were stronger on Wednesday, a positive factor for the broader market. ServiceNow (NOW) closed up more than +3%, and Adobe Systems (ADBE), Intuit (INTU), and Autodesk (ADSK) closed up more than +2%. Also, Salesforce (CRM) closed up more than +1% to lead gainers in the Dow Jones Industrials, and Datadog (DDOG), Atlassian Corp (TEAM), Microsoft (MSFT), and Cadence Design Systems (CDNS) closed up more than +1%.
Cybersecurity stocks rose on Wednesday. Gen Digital (GEN) closed up more than +5% to lead gainers in the S&P 500, and Okta (OKTA), Palo Alto Networks (PANW), and SentinelOne (S) closed up more than +2%. Also, Fortinet (FTNT) closed up more than +1%, Crowdstrike Holdings (CRWD) closed up +0.81%, and Zscaler (ZS) closed up +0.71%.
Fair Isaac (FICO) closed down -4%, adding to Tuesday’s -26% plunge and leading credit reporting agencies lower on negative carryover from Tuesday when FHA director Pulte announced a move that makes it easier for lenders to adopt VantageScore, a move that will increase competition that could pressure credit companies’ market share and pricing power. TransUnion (TRU) also closed down more than -4% and Equifax (EFX) closed down more than -2%.
Moderna (MRNA) closed down more than -5% after Citigroup downgraded the stock to sell from neutral with a price target of $80.
Northrup Grumman (NOC) closed down more than -4% after losing out to Boeing on the $20 billion contract to build the Navy’s next-generation fighter jet.
Walmart (WMT) closed down more than -2% to lead losers in the Dow Jones Industrials after Target announced additional price cuts, which may lead to lower profits at Walmart if it is forced to follow suit.
Synopsys (SNPS) closed up more than +4% to lead gainers in the Nasdaq 100 after signing a deal with Amazon.com valued at over $1 billion over multiple years.
Hewlett Packard Enterprise (HPE) closed up more than +3% after raising its fiscal 2027 networking segment revenue growth outlook.
FactSet Research Systems (FDS) closed up more than +3% after forecasting 2027 adjusted operating margin of 34.8% to 35.3%, above the consensus of 34.4%.
Huntington Ingalls Industries (HII) closed up more than +2% after the US Navy awarded the company a $5.1 billion contract to complete the USS Harry S. Truman refueling and complex overhaul.
Earnings Reports (10/1/2026)
Accenture PLC (ACN), Acuity Inc (AYI), American Resources Corp (AREC), McCormick & Co Inc/MD (MKC), NIKE Inc (NKE).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Pressured by Rising Bond Yields

The S&P 500 Index ($SPX) (SPY) is up by +0.63% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.15%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.75%. December E-mini S&P futures (ESZ26) are up +0.55%, and December E-mini Nasdaq futures (NQZ26) are up +0.72%.
Stock indexes are moving higher today as inflation concerns eased after the Q2 core PCE price index was revised lower and the Aug core PCE price index rose less than expected. The better-than-expected inflation news reduced the chance of a Fed rate hike next month to 35% from 52% on Tuesday. Also, signs of growth in the US economy supported stocks after Q2 GDP was revised higher, the Sep ADP employment change rose more than expected, and Aug personal spending rose the most in 5 months. Stocks added to their gains after the Sep MNI Chicago PMI expanded at the strongest pace in 4 months.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks are awaiting Micron Technology's earnings after the close today to gauge demand for AI spending.
US MBA mortgage applications fell -6.0% in the week ended September 25, with the purchase mortgage sub-index down -4.3% and the refinancing mortgage sub-index down -8.7%. The average 30-year fixed-rate mortgage rose +18 bp to a 2.75-year high of 7.30% from 7.12% the prior week.
The US Sep ADP employment change rose by +90,000, stronger than expectations of +75,000.
US Aug personal spending rose by +0.9% m/m, right on expectations and the largest increase in five months. Aug personal income rose +0.2% m/m, weaker than expectations of +0.5% m/m.
The US Aug core PCE price index, the Fed's preferred inflation gauge, rose +0.2% m/m and +3.0% y/y, weaker than expectations of +0.3% m/m and +3.3% y/y.
US Q2 GDP was revised upward to +2.2% (q/q annualized), stronger than expectations of no change at +1.5%, as Q2 personal consumption was revised upward to +3.8% from the previously reported +3.4%. The Q2 core PCE price index was revised downward to +3.3% from the previously reported +3.6%.
The US Sep MNI Chicago PMI rose +11.7 to 58.8, stronger than expectations of 51.0 and the fastest pace of expansion in four months.
Positive economic news from China supported global growth prospects and boosted stocks. The China Sep manufacturing PMI rose +0.3 to 50.1, right on expectations. The China Sep non-manufacturing PMI rose +1.2 to 50.2, stronger than expectations of 49.2.
Nov WTI crude oil prices (CLX26) are up more than +2% today after Russia announced that it was extending a ban on most diesel exports through October, further tightening theglobal market Russia began its diesel export ban in July after Ukrainian drone and missile attacks damaged Russian refineries. Gains in crude are limited after JPMorgan Chase said Middle East crude exports have rebounded to 17.5 million bpd, or about 98% of pre-war levels, although flows of gasoline, diesel and distillates were at 3 million bpd, or 58% of pre-war levels.
Markets are discounting a 35% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.36%. China's Shanghai Composite closed up +0.318%. Japan's Nikkei-225 Stock Average closed up +1.94%.
Interest Rates
December 10-year T-notes (ZNZ6) are down -3 ticks today. The 10-year T-note yield is up +1.3 bp to 5.268%. Dec T-notes gave up an early advance today and turned lower on stronger-than-expected US economic news, including Q2 GDP, the Sep ADP employment change, and the Sep MNI Chicago PMI. Also, today’s +2% increase in WTI crude oil is raising inflation expectations and is bearish for T-notes. The 10-year breakeven inflation rate rose to a 2-week high of 2.365% today.
T-notes initially moved higher today as inflation concerns eased after the Q2 core PCE price index was revised lower and the Aug core PCE price index rose less than expected. The weaker-than-expected inflation readings reduced the chance of a Fed rate hike next month to 35% from 52%. T-notes also have support from some month- and quarter-end buying by bond fund managers today as they extend duration in their portfolios.
European government bond yields are mixed today. The 10-year German bund yield is down -4.9 bp to 3.577%. The 10-year UK gilt yield is up +0.5 bp to 5.415%.
The German Sep unemployment change rose +12,000, showing a weaker labor market than expectations of 500.
German Aug retail sales rose +1.3% m/m, the largest increase in 14 months but slightly weaker than expectations of +1.5% m/m.
German Sep CPI (EU harmonized) rose +0.6% m/m and +3.3% y/y, stronger than expectations of +0.5% m/m and +3.2% y/y, with the +3.3% y/y gain the largest year-on-year increase in 2.75 years.
UK Q2 GDP was revised upward to +0.5% q/q and +1.4% y/y from the previously reported +0.4% q/q and +1.2% y/y.
Markets are discounting a 28% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Software stocks are stronger today, supporting gains in the broader market. Atlassian Corp (TEAM) is up more than +3%, and Salesforce (CRM) is up more than +3% to lead gainers in the Dow Jones Industrials. Also, Datadog (DDOG), Adobe Systems (ADBE), Autodesk (ADSK), and Intuit (INTU) are up more than +2%. In addition, Microsoft (MSFT), Palantir Technologies (PLTR), ServiceNow (NOW), and Cadence Design Systems (CDNS) are up more than +1%.
Cybersecurity stocks are strengthening today, providing support to the overall market. Gen Digital (GEN) is up more than +6%, and Okta (OKTA) and Palo Alto Networks (PANW) are up more than +3%. Also, Fortinet (FTNT) and SentinelOne (S) are up more than +2%, and Crowdstrike Holdings (CRWD) and Zscaler (ZS) are up more than +1%.
Hewlett Packard Enterprise (HPE) is up more than +7% to lead gainers in the S&P 500 after raising its fiscal 2027 networking segment revenue growth outlook.
Huntington Ingalls Industries (HII) is up more than +2% after the US Navy awarded the company a $5.1 billion contract for the accomplishment of the USS Harry S. Truman refueling and complex overhaul.
Target (TGT) is up more than +1% after HSBC upgraded the stock to buy from hold with a price target of $190.
Moderna (MRNA) is down more than -7% to lead losers in the S&P 500 after Citigroup downgraded the stock to sell from neutral with a price target of $80.
Cal-Maine Foods (CALM) is down more than -3% after reporting Q1 net sales of $539.6 million, below the consensus of $552.2 million.
Northrup Grumman (NOC) is down more than -3% after losing out to Boeing on the $20 billion contract to build the Navy’s next-generation fighter jet.
Earnings Reports (9/30/2026)
Cal-Maine Foods Inc (CALM), Conagra Brands Inc (CAG), FactSet Research Systems Inc (FDS), Jabil Inc (JBL), Micron Technology Inc (MU), Progress Software Corp (PRGS).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Push Higher as Fed Rate Hike Chances Fall

The S&P 500 Index ($SPX) (SPY) is up by +0.34% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.07%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.52%. December E-mini S&P futures (ESZ26) are up +0.35%, and December E-mini Nasdaq futures (NQZ26) are up +0.52%.
Stock indexes are moving higher today as inflation concerns eased after the Q2 core PCE price index was revised lower and the Aug core PCE price index rose less than expected. The better-than-expected inflation news reduced the chance of a Fed rate hike next month to 35% from 52% on Tuesday. Also, signs of growth in the US economy supported stocks after Q2 GDP was revised higher, the Sep ADP employment change rose more than expected, and Aug personal spending rose the most in 5 months.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks are awaiting Micron Technology's earnings after the close today to gauge demand for AI spending.
US MBA mortgage applications fell -6.0% in the week ended September 25, with the purchase mortgage sub-index down -4.3% and the refinancing mortgage sub-index down -8.7%. The average 30-year fixed-rate mortgage rose +18 bp to a 2.75-year high of 7.30% from 7.12% the prior week.
The US Sep ADP employment change rose by +90,000, stronger than expectations of +75,000.
US Aug personal spending rose by +0.9% m/m, right on expectations and the largest increase in five months. Aug personal income rose +0.2% m/m, weaker than expectations of +0.5% m/m.
The US Aug core PCE price index, the Fed's preferred inflation gauge, rose +0.2% m/m and +3.0% y/y, weaker than expectations of +0.3% m/m and +3.3% y/y.
US Q2 GDP was revised upward to +2.2% (q/q annualized), stronger than expectations of no change at +1.5%, as Q2 personal consumption was revised upward to +3.8% from the previously reported +3.4%. The Q2 core PCE price index was revised downward to +3.3% from the previously reported +3.6%.
Positive economic news from China supported global growth prospects and boosted stocks. The China Sep manufacturing PMI rose +0.3 to 50.1, right on expectations. The China Sep non-manufacturing PMI rose +1.2 to 50.2, stronger than expectations of 49.2.
Nov WTI crude oil prices (CLX26) are up more than +1% today after Russia announced that it was extending a ban on most diesel exports through October, further tightening theglobal market Russia began its diesel export ban in July after Ukrainian drone and missile attacks damaged Russian refineries. Gains in crude are limited after JPMorgan Chase said Middle East crude exports have rebounded to 17.5 million bpd, or about 98% of pre-war levels, although flows of gasoline, diesel and distillates were at 3 million bpd, or 58% of pre-war levels.
Markets are discounting a 35% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.36%. China's Shanghai Composite closed up +0.318%. Japan's Nikkei-225 Stock Average closed up +1.94%.
Interest Rates
December 10-year T-notes (ZNZ6) are up +5 ticks today. The 10-year T-note yield is down -2.1 bp to 5.234%. Dec T-notes are moving higher today as inflation concerns eased after the Q2 core PCE price index was revised lower and the Aug core PCE price index rose less than expected. The weaker-than-expected inflation readings reduced the chance of a Fed rate hike next month to 35% from 52%. T-notes also have support from some month- and quarter-end buying by bond fund managers today as they extend duration in their portfolios.
Gains in T-notes are limited after the Sep ADP employment change rose more than expected, a sign of labor market strength that is hawkish for Fed policy. Also, today’s +1% increase in WTI crude oil is raising inflation expectations and is bearish for T-notes.
European government bond yields are moving lower today. The 10-year German bund yield is down -5.6 bp to 3.570%. The 10-year UK gilt yield is down -0.9 bp to 5.401%.
The German Sep unemployment change rose +12,000, showing a weaker labor market than expectations of 500.
German Aug retail sales rose +1.3% m/m, the largest increase in 14 months but slightly weaker than expectations of +1.5% m/m.
German Sep CPI (EU harmonized) rose +0.6% m/m and +3.3% y/y, stronger than expectations of +0.5% m/m and +3.2% y/y, with the +3.3% y/y gain the largest year-on-year increase in 2.75 years.
UK Q2 GDP was revised upward to +0.5% q/q and +1.4% y/y from the previously reported +0.4% q/q and +1.2% y/y.
Markets are discounting a 27% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Software stocks are stronger today, supporting gains in the broader market. Datadog (DDOG) is up more than +2%, and Salesforce (CRM) is up more than +2% to lead gainers in the Dow Jones Industrials. Also, Adobe Systems (ADBE), Atlassian Corp (TEAM), Autodesk (ADSK), Intuit (INTU), Microsoft (MSFT), Palantir Technologies (PLTR), ServiceNow (NOW), and Workday (WDAY) are up more than +1%.
Cybersecurity stocks are strengthening today, providing support to the overall market. Okta (OKTA) is up more than +2%, and Crowdstrike Holdings (CRWD), Palo Alto Networks (PANW), SentinelOne (S), and Gen Digital (GEN) are up more than +1%.
Hewlett Packard Enterprise (HPE) is up more than +6% to lead gainers in the S&P 500 after raising its fiscal 2027 networking segment revenue growth outlook.
Huntington Ingalls Industries (HII) is up more than +2% after the US Navy awarded the company a $5.1 billion contract for the accomplishment of the USS Harry S. Truman refueling and complex overhaul.
Target (TGT) is up more than +1% after HSBC upgraded the stock to buy from hold with a price target of $190.
Moderna (MRNA) is down more than -6% to lead losers in the S&P 500 after Citigroup downgraded the stock to sell from neutral with a price target of $80.
Cal-Maine Foods (CALM) is down more than -5% after reporting Q1 net sales of $539.6 million, below the consensus of $552.2 million.
Northrup Grumman (NOC) is down more than -3% after losing out to Boeing on the $20 billion contract to build the Navy’s next-generation fighter jet.
Earnings Reports (9/30/2026)
Cal-Maine Foods Inc (CALM), Conagra Brands Inc (CAG), FactSet Research Systems Inc (FDS), Jabil Inc (JBL), Micron Technology Inc (MU), Progress Software Corp (PRGS).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Climb on Signs of Lower Inflation and Stronger US Growth

RTX Corporation RTX is strengthening its position in the air-to-air missile market as demand for Advanced Medium-Range Air-to-Air Missiles (AMRAAM) continues to rise among the U.S. military and international customers. Its Raytheon business recently received a multiyear contract valued at up to $20.7 billion for the production of AMRAAM, guidance sections and related requirements.
The five-year contract, which includes two option years, covers AMRAAM production through June 2033. The award is expected to support a significant increase in production, with RTX targeting annual output of at least 1,900 missiles. The company has already invested in expanding AMRAAM production capacity and nearly doubled output in 2025 from the previous year.
International demand is another key growth driver. The contract includes Foreign Military Sales to 16 countries, including Australia, Canada, Germany, Japan, Poland, Sweden and the United Kingdom. AMRAAM is currently deployed across 44 countries and operates on 14 platforms, giving RTX a broad customer base for the missile.
The award also strengthens RTX’s long-term defense production pipeline. Rising demand for air-to-air missiles, along with efforts by the United States and its allies to expand weapons inventories, should support higher production volumes. RTX’s investments in its workforce, supply chain and manufacturing facilities are expected to help meet these requirements.
With strong U.S. and international demand, the AMRAAM program could provide RTX with sustained revenue opportunities while supporting growth in its broader missile and defense portfolio.
Defense Stocks to Keep on the Radar
Growing demand for advanced missiles and replenishment of defense inventories could also benefit other major defense contractors with established weapons portfolios.
Lockheed Martin LMT: Lockheed Martin benefits from demand for air and missile defense systems, including PAC-3 interceptors and other precision weapons. Rising U.S. and allied requirements for advanced missile defense capabilities could support continued orders across its portfolio.
Northrop Grumman NOC: Northrop Grumman supports missile programs through advanced guidance, propulsion and defense electronics. Its involvement in strategic and tactical missile programs positions the company to benefit from continued investment in precision weapons and next-generation defense technologies.
The Zacks Rundown for RTX
Shares of RTX have surged 12.1% in the past year against the industry’s 14.4% decline.
Image Source: Zacks Investment Research
The company’s shares are trading at a premium on a relative basis, with its forward 12-month Price/Sales being 2.51X compared with its industry’s average of 2.19X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
RTX stock 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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This article originally published on Zacks Investment Research (zacks.com).

Can Rising AMRAAM Demand Support RTX's Defense Growth Outlook?

Lockheed Martin LMT continues to strengthen its position in advanced radar and air surveillance systems as the U.S. Air Force invests in capabilities designed to detect and track threats over long distances. The company recently received an $18.9 million contract modification for the Three-Dimensional Expeditionary Long-Range Radar program.
The latest award increases the cumulative face value of the contract to approximately $1.01 billion from $991.3 million. Work will be performed in Liverpool, NY, and is expected to be completed by June 2029, providing Lockheed Martin with continued program visibility.
Three-dimensional long-range radar systems are designed to provide detailed information on the location, altitude and movement of airborne objects. Such capabilities are important for strengthening air surveillance and supporting timely responses to aircraft, missiles and other potential threats.
The contract also highlights continued demand for mobile and expeditionary radar capabilities that can support military operations in different environments. As the Air Force works to improve detection and tracking capabilities against increasingly complex threats, advanced radar systems are expected to remain an important area of defense investment.
Lockheed Martin’s established expertise in radar, sensors and integrated mission systems positions it to benefit from these requirements. Continued awards and modifications under the program could provide recurring opportunities as the Air Force expands and sustains its long-range surveillance capabilities.
Defense Stocks to Keep on the Radar
Growing demand for advanced radar and air surveillance capabilities could also benefit other defense contractors with established sensor portfolios.
RTX Corporation RTX: RTX develops advanced radar and sensor technologies for air defense and surveillance applications. Its portfolio includes systems designed to detect, track and identify airborne threats across different operating environments.
Northrop Grumman NOC: Northrop Grumman provides advanced radar and sensor systems for air and missile defense. Its expertise in long-range surveillance and integrated sensing supports demand for technologies that improve threat detection and situational awareness.
The Zacks Rundown for LMT
Shares of LMT have risen 5.3% in the past year against the industry’s 14.7% decline.
The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.43X compared with its industry’s average of 2.19X.
The Zacks Consensus Estimate for LMT’s 2026 and 2027 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
LMT 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).

Can Long-Range Radar Demand Support Lockheed Martin's Growth?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Defense Industrials Active ETF (Symbol: IDEF) where we have detected an approximate $480.7 million dollar outflow -- that's a 11.1% decrease week over week (from 135,880,000 to 120,740,000). Among the largest underlying components of IDEF, in trading today General Dynamics Corp (Symbol: GD) is up about 0.1%, Northrop Grumman Corp (Symbol: NOC) is up about 0.6%, and Elbit Systems Ltd. (Symbol: ESLT) is lower by about 2.8%. For a complete list of holdings, visit the IDEF Holdings page » The chart below shows the one year price performance of IDEF, versus its 200 day moving average:
Looking at the chart above, IDEF's low point in its 52 week range is $28.5403 per share, with $36.88 as the 52 week high point — that compares with a last trade of $31.62. 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 ».
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.
Further IDEF Research:

Notable ETF Outflow Detected - IDEF, GD, NOC, ESLT

Northrop Grumman NOC is strengthening its position in the F-35 program through continued demand for its advanced APG-85 radar. The company recently received a not-to-exceed $123.8 million contract from the U.S. Navy for long-lead materials, parts, components and related efforts, supporting the production of 67 APG-85 radars for the Air Force, Marine Corps and Navy.
The work will be performed in Linthicum Heights, MD, and is expected to be completed by February 2031. The award provides Northrop Grumman with long-term production visibility while supporting the delivery schedule of F-35 aircraft across the U.S. military services.
The APG-85 is designed to provide advanced sensing and targeting capabilities for the F-35, supporting the aircraft’s ability to detect and track threats. Continued procurement of the radar highlights the importance of advanced sensor systems as the U.S. military expands and sustains its F-35 fleet.
The contract also reflects Northrop Grumman’s established role in supplying critical mission systems for the F-35. Long-term production programs such as the APG-85 can support recurring revenue opportunities as additional aircraft are produced and existing platforms receive upgrades and sustainment.
With the F-35 remaining an important part of U.S. tactical airpower plans, continued demand for its radar and other mission-critical systems could provide a steady growth opportunity for Northrop Grumman.
Defense Stocks to Keep on the Radar
The continued expansion of advanced fighter aircraft programs could also support companies supplying critical systems and technologies.
Lockheed Martin LMT: Lockheed Martin is the F-35’s prime contractor and continues to produce the aircraft for the U.S. and international customers, supporting long-term demand across its fighter aircraft business.
RTX Corporation RTX: RTX supplies the F-35 through its Pratt & Whitney engine business and Collins Aerospace systems. Continued F-35 production and sustainment provide recurring opportunities across propulsion, avionics and other aircraft systems.
The Zacks Rundown for NOC
Shares of NOC have surged 1.8% in the past three months against the industry’s 10.3% decline.
The company's shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.57X compared with its industry’s average of 2.24X.
The Zacks Consensus Estimate for NOC’s 2026 and 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).

Can Rising F-35 Radar Demand Support Northrop Grumman's Growth?

L3Harris Technologies, Inc. LHX uses a structured process to monitor the cost and performance of its long-term contracts. The company establishes an estimated total cost at completion based on contract complexity and perceived risks, and regularly reviews progress and performance. This process provides an opportunity to adjust cost estimates as technical, schedule and cost risks are retired.
Contract execution is particularly important because L3Harris’ production contracts are mainly fixed-price, while development contracts are generally cost-type. Under fixed-price arrangements, the company can benefit from cost savings, but it also carries the burden of cost overruns. As a result, effective monitoring of contract costs and execution can have a direct effect on profitability.
L3Harris’ recent results show the potential earnings impact of this process. Net favorable Estimate at Completion (‘EAC”) adjustments affected earnings by $47 million in 2025 compared with $39 million in 2024. These adjustments reflect changes in estimated costs and transaction prices, with the cumulative impact recognized in operating income and future revenues and margins adjusted based on revised estimates.
Continued discipline in contract execution could remain an important factor for L3Harris’ margin performance. The company notes that cost estimates can improve when technical, schedule and cost risks are successfully retired, while supply-chain disruptions, inflation, labor issues, design challenges and program execution problems can increase estimated costs. Managing these factors effectively could support more consistent profitability as contracts progress.
Companies Managing Contract Cost and EAC Performance
Effective contract cost management can help aerospace and defense companies manage profitability as long-term programs progress. Northrop Grumman Corporation NOC and AeroVironment, Inc. AVAV use contract estimates and adjustments to reflect changes in expected program performance.
Northrop Grumman uses EAC adjustments to reflect changes in estimated contract earnings, which can affect sales, operating income and margins. It reported $209 million of net favorable EAC adjustments in 2025.
AeroVironment uses cumulative catch-up adjustments to reflect changes in estimated contract performance and reported $14.3 million of favorable cumulative catch-up adjustments in fiscal 2026.
Earnings Estimates for LHX
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 9.79% and 14.44%, respectively.
LHX Stock Is Trading at a Discount
LHX is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 1.79X compared with the industry average of 2.24X.
LHX Stock Price Performance
Over the past year, LHX shares have fallen 18.9% compared with the industry’s 14.9% decline.
LHX’s Zacks Rank
LHX stock currently has 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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Can L3Harris' Contract Cost Control Support Future Margin Growth?

Northrop Grumman NOC is strengthening its position in aircraft sustainment through continued engineering support for critical avionics systems. The company recently received an $11.5 million contract modification from the U.S. Air Force to address Diminishing Manufacturing Sources (DMS) for three components of the Receiver-Transmitter Processor supporting the APN-241 program.
The work will be performed in Warner Robins, GA, and is expected to be completed by September 2027. The contract reflects the Air Force’s need to maintain the availability and reliability of existing aircraft systems as certain components become difficult to source. By addressing these supply challenges, Northrop Grumman can help ensure that critical avionics remain available to support ongoing aircraft operations.
Addressing DMS issues is important for extending the service life of legacy defense platforms. NOC’s engineering expertise in avionics and mission systems positions it to help customers manage component obsolescence, supply-chain challenges and manufacturing changes. This is particularly relevant as the Air Force continues to operate and sustain a large fleet of existing aircraft alongside newer platforms.
The award also highlights NOC’s role in providing lifecycle support for defense systems beyond their initial production. Such sustainment and engineering programs can provide recurring opportunities as the U.S. military continues to operate and upgrade its existing aircraft fleet.
With the Air Force focused on maintaining mission readiness while managing aging systems, demand for avionics sustainment, engineering services and component replacement could remain a steady opportunity for Northrop Grumman. This should support the company’s broader defense business by creating opportunities tied to the long-term maintenance of mission-critical systems.
Defense Stocks to Keep on the Radar
Rising demand for aircraft sustainment, avionics support and lifecycle services could benefit defense contractors with broad aerospace portfolios.
Lockheed Martin LMT: The company supports the growing F-35 fleet through maintenance, upgrades and lifecycle services, creating recurring sustainment opportunities.
RTX Corporation RTX: Its Collins Aerospace business provides avionics, engineering and sustainment services for military aircraft. Its broad portfolio of aircraft systems positions it to benefit from demand for avionics upgrades, component replacement and lifecycle support.
The Zacks Rundown for NOC
Shares of NOC have lost 13% in the past year compared with the industry’s 13.5% decline.
The company’s shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.57X compared with its industry’s average of 2.27X.
The Zacks Consensus Estimate for NOC’s 2026 and 2027 earnings has moved north 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).

Can APN-241 Processor Demand Support Northrop Grumman's Growth?

Lockheed Martin’s LMT Missiles and Fire Control (“MFC”) segment is becoming an important contributor to the company’s current growth. Second-quarter 2026 MFC sales increased 19% year over year to $4.1 billion, while segment operating profit increased 24% to $594 million. The company attributed the sales increase primarily to higher volumes on the PAC-3, THAAD and PrSM programs.
THAAD is particularly important to Lockheed Martin’s backlog expansion. The company's backlog reached $230.4 billion as of June 28, 2026, marking an increase of $36.8 billion during the first six months of the year. Lockheed Martin said the increase was primarily driven by an undefinitized contractual action awarded for the THAAD program within MFC.
THAAD is therefore contributing to both current production and future revenue visibility. The program also sits alongside PAC-3 and PrSM, giving MFC several missile programs contributing to the segment's growth rather than relying on a single platform.
LMT increased its full-year 2026 outlook across all four business segments. For MFC, the company now expects 2026 sales of $16.5-$16.9 billion compared with its previous April outlook of $16.1-$16.9 billion. It expects MFC operating profit of $2.3 billion to $2.35 billion. The company said the higher sales outlook reflects higher volumes on PAC-3, THAAD and PrSM.
The broader portfolio also provides additional growth opportunities. Aeronautics sales are expected to benefit from higher F-35 production volume, while Space expects increased volume on the Next Generation Interceptor and Fleet Ballistic Missile programs. Rotary and Mission Systems is also expecting growth from a Sikorsky production ramp up and new radar awards.
Companies Benefiting From Missile & Defense Modernization
Along with LMT, few other companies are also positioned to benefit from the same trend, as discussed below:
RTX Corporation RTX: RTX has exposure to missile defense through Raytheon, including systems and interceptors used across air and missile-defense programs. Its portfolio also spans sensors, radars and other defense technologies.
Northrop Grumman NOC: Northrop Grumman participates in missile defense, space and strategic systems, giving it exposure to government demand for integrated defense and next-generation security capabilities.
LMT Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year improvement of 31.7% and 8.44%, respectively.
LMT Stock Trades at a Discount
In terms of valuation, LMT’s forward 12-month price-to-sales (P/S) is 1.44X, a discount to the industry’s average of 2.27X.
Image Source: Zacks Investment Research
LMT Stock’s Price Performance
In the past three months, the company’s shares have risen 3.8% against the industry’s 8.8% decline.
Image Source: Zacks Investment Research
LMT’s Zacks Rank
The company currently has 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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