Northrop Grumman Corporation (NOC)

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Stock Price History

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Our View

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.

The 10-year monthly chart for Northrop shows a consistent uptrend with two major pullbacks, one in 2018 and another in 2020. The most recent pullback through 2020 saw the price drop about 20% over two months. Since April, the price has been range-bound between $300-$350, and the last few months had seen the price go below the bottom of the long-term trend. In March 2021, the price has bounced back up above the bottom trendline. It now looks likely to test the $350 levels again. The stop loss for this trade can be placed below the low of the March 2021 candle at around $290.

Position entered into our long-term tracking portfolio today. The entry point is at $323.76, and stop-loss placed at $259.03, which is 20% below the entry point. The short-term to medium take profit at the top of the trend is set at $389.98, giving a profit of 21%.

Data Explained

On the video and images above you will see the reason this stock was selected.

You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.

Once it is time to move the original stop loss up you will see an additional image.

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