As we move into Q4, it's time to check in on our long-term trends before we race to the end of the fiscal year.
With the world rapidly moving toward a slightly more isolationist bent, there's still a strong emphasis on defense, especially advanced defensive technologies.
As such, one of our oldest picks is starting to regain momentum after falling back to earth in the past year. That's right, today let's check in on the Northrop Grumman ($NOC) and see how they're putting the pieces back together in aerospace.
In short, Northrop blew past a price target we set for them in early 2021, but since then they've hit a few snags as their Defense and Space Systems didn't bring in enough operating income to justify their valuation this year.
Even though Northrop finally unveiled their B-21 Raider Bomber earlier this year, that program is in a low-margin phase of its rollout. That's why NOC has spent basically all of 2023 getting re-evaluated by the market.
With one last huge contract win in September, we're ready to re-up our Northrop coverage now that they are quickly establishing themselves as the new missile kingpins for the U.S. defense industry.
So let's break down NOC's recent weakness, and how a new slat of contracts will help them crack out of it.👇