Northrop Grumman Stock Makes Record High on Contract Win, Analyst Upgrades

Northrop Grumman's stock (NYSE:NOC) looks set to open at a new all-time high, fueled by a major contract award and bullish sentiment from analysts. The defense giant closed at a new high of $568.50, and is trading slightly higher in the pre-market leading in.

NOC continued to build on the earnings momentum after the company announced a $495 million requirements contract for technical representative engineering services from the Air Force Sustainment Center.

The contract, a sole-source acquisition, provides for engineering services supporting various major defense programs. Work will be performed in Oklahoma City, with completion expected by July 22, 2030.

This latest contract win bolsters Northrop Grumman's already strong backlog and provides increased visibility into future revenue streams. The company's ability to secure sole-source contracts underscores its critical role in supporting key U.S. defense initiatives.

The stock's performance has been impressive year-to-date, delivering a 21.4% return for holders. This surge is attributed to a combination of strong earnings, positive analyst revisions, and the consistent flow of new contract awards.

Northrop Grumman's recent earnings report further fueled investor optimism. The company posted earnings of $8.15 per share, significantly exceeding consensus estimates of $6.84.

Even when excluding a one-time gain of $1.04, the company still beat estimates by 4%.

Analysts at RBC Capital and Truist Securities have raised their price targets for NOC to $625, reflecting their confidence in the company's continued growth potential. These revised targets are based on Northrop Grumman's strong execution, robust backlog, and favorable outlook for defense spending.

There has been a wave of updates from Wall Street, with no fewer than seven analysts recently revising their estimates upward for Northrop Grumman.

“Northrop Grumman's strategic positioning in the defense sector, coupled with its strong execution and robust backlog, make it a compelling investment opportunity,” said one analyst. “We expect the company to continue to deliver strong results and generate significant value for shareholders.”