For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Northrop Grumman (NOC) ten years ago? It may not have been easy to hold on to NOC for all that time, but if you did, how much would your investment be worth today?
Northrop Grumman's Business In-Depth
With that in mind, let's take a look at Northrop Grumman's main business drivers.
Originally formed in 1939 as Northrop Aircraft Incorporated and reincorporated in 1985 as Northrop Corporation in Delaware, Northrop was a principal developer of flying wing technology. In 1994, the company acquired Grumman Corporation (Grumman), after which the company was renamed Northrop Grumman Corporation. Currently, this global security company supplies a broad array of products like space systems, military aircraft, missile defense, advanced weapons and long-range fire capabilities, mission systems, networking and communications, strategic deterrence systems, and breakthrough technologies, such as advanced computing, microelectronics and cyber. As of Dec 31, 2024, the company operates through the following reportable segments:
Northrop Grumman's Aeronautics Systems unit focuses on the development, integration, production and support of manned aircraft, unmanned autonomous systems as well as airborne battle management and command and control systems. In 2024, this segment’s revenues came in at $12.03 billion, contributing 29.3% to the company’s total revenues.
Its Defense Systems unit focuses on production of advanced tactical weapons and missile defense solutions. It is also a provider of sustainment, modernization and training services for manned and unmanned aircraft and electronics systems. In 2024, this segment’s revenues came in at $8.56 billion, contributing 20.9% to the company’s total revenues.
The company's Mission Systems unit includes airborne sensors and networks, cyber and intelligence mission solutions, maritime/land systems and sensors, along with navigation, targeting and survivability. In 2024, this segment’s revenues came in at $11.40 billion, contributing 27.8% to the company’s total revenues.
Its Space Systems unit focuses on launch and strategic missile systems as well as varied space related products like satellites and spacecraft systems, sensors and payloads along with launch vehicles and related propulsion systems. In 2024, this segment’s revenues came in at $11.73 billion, contributing 28.6% to the company’s total revenues.
However, total revenues of $41.03 billion in 2024 were adjusted for inter-segment eliminations of $2.69 billion.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Northrop Grumman a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in January 2016 would be worth $3,641.52, or a gain of 264.15%, as of January 23, 2026, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500's gained 262.54% and the price of gold went up 330.28% over the same time frame.
Analysts are forecasting more upside for NOC too.
Northrop boasts a solid presence in Defense and Cyber Security programs, with its product line being well-positioned in high-priority categories. Northrop witnesses strong demand for its products across the globe. The company boasts a strong financial position. The current U.S. government's inclination toward strengthening the nation's defense system should benefit Northrop. Its shares have outperformed the industry in the past six months. However, labor shortage in the aerospace-defense industry might adversely impact Northrop's operating results. Rising material costs and U.S. import tariffs also pose a risk for the stock. Impacts of the Tax Cuts and Jobs Act of 2017 pose a risk to the stock.
The stock has jumped 15.13% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2025; the consensus estimate has moved up as well.
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Northrop Grumman Corporation (NOC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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