The defence industry is considered to be a recession-proof one. Government spending on defence tends to hold even during economic downturns and other negative events. Northrop Grumman is one of the largest weapons manufacturers and defence contractors in the world. It employs over 90,000 people and did revenues in excess of $36 billion in 2020. Its most iconic projects include the development of the B-21 Raider, the fuselage for the F-35 program, and multiple other aerospace technologies. Defence majors like Northrop benefit from wide moats arising out of government contacts, customer stickiness due to the mission-critical nature of defence systems, and technological prowess. The long-term growth prospects of the company appear strong. Northrop Grumman is counted among the top aerospace stock choices in the US.
More Information About Northrop Grumman
Northrop Grumman Corporation is one of the largest defence equipment manufacturers in the world. It is ranked in the top 100 of the Fortune 500 list. The company is headquartered in Virginia, USA. It is very well-known for its B-2 and B-21 strategic bomber planes. Northrop Grumman also provides key parts and assemblies for other fighter aircraft like the F-35 and the F/A-18 Hornet. Northrop Grumman can trace its roots back to the early 1900s, when it was known as the Grumman Corporation. It was founded in Long Island, New York and had a reputation for building navy aircraft during World War II. It later made strategic acquisitions to increase its aerospace business segment offerings. Today, Northrop Grumman provides a range of aeronautic systems, space systems, and other defence systems. Northrop Grumman is a shortlist for the best defence stock whenever investors discuss the defence industry.
Northrop Grumman’s stock closed at $368.62 on 18th May 2021. The stock was up slightly less than 7% over the preceding 30 days. On 18th May 2021, Northrop Grumman was trading at a 1.57% dividend yield.