Northrop Grumman presently has a consensus price target of $397.80, suggesting a potential upside of 31.67%. For the second quarter, the company reported an order backlog of $150 billion. Comparatively, 77.6% of Lockheed Martin shares are owned by institutional investors. Given the factor of valuation and the growth outlook, defense stocks are worth holding in the portfolio. Comparatively, General Dynamics has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. However, companies in the defense sector continue to grow and add to their order backlog. Northrop Grumman presently has a consensus price target of $397.80, suggesting a potential upside of 31.67%. Northrop Grumman is trading at a lower price-to-earnings ratio than TransDigm Group, indicating that it is currently the more affordable of the two stocks. The U.S. defense sector is expected to grow with a compound annual growth rate of 5% between now and 2025. With a combined total revenue in 2001 of $100 billion and employing 400,000 people, Lockheed Martin, Northrop Grumman and Boeing are three powerhouses of American business. Northrop Grumman presently has a consensus price target of $397.80, suggesting a potential upside of 31.67%. Comparatively, 8.2% of TransDigm Group shares are owned by insiders.

NOC stock has been an underperformer in the last year, trended lower by more than 12%. Northrop Grumman beats Heico on 10 of the 17 factors compared between the two stocks. These four defense stocks have been underperformers in the last year, but have the potential to deliver healthy returns in the coming quarters. Northrop Grumman is trading at a lower price-to-earnings ratio than Lockheed Martin, indicating that it is currently the more affordable of the two stocks.

Nasdaq With the S&P 500 index trading at a price-earnings-ratio of 35x, the broad markets look stretched in the near term. 0.3% of Northrop Grumman shares are owned by insiders. This implies a potential upside of 31.7% from current levels. When it comes to defense stocks, LMT stock is my top choice. From a business perspective, the company has a robust order backlog of $70 billion. Northrop Grumman (NYSE:NOC) and TransDigm Group (NYSE:TDG) are both large-cap aerospace companies, but which is the superior investment? Given Northrop Grumman's stronger consensus rating and higher possible upside, analysts clearly believe Northrop Grumman is more favorable than TransDigm Group. Northrop Grumman presently has a consensus price target of $397.80, suggesting a potential upside of 31.67%. We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk. This table compares Northrop Grumman and Honeywell International's net margins, return on equity and return on assets.

1125 N. Charles St, Baltimore, MD 21201. The important point to note here is that the company has certification from the likes of Lockheed Martin, Northrop Grumman, Pratt & Whitney and Airbus Military.

Is The Simply Good Food Company A Simply Good Investment? Article printed from InvestorPlace Media, https://investorplace.com/2020/10/4-defense-stocks-vital-to-national-security-lmt-noc-hei-ajrd/.

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