Northrop Grumman is gaining momentum in the second half of 2025, supported by strong Q2 results, a 12% dividend hike to $2.31 per share, and raised full-year guidance. The company now expects EPS of $25.00ā$25.40 and revenue of $42.05ā$42.25 billion, driven by solid growth in defense and mission systems and an 18% increase in international sales. Across the Street, several analysts, including Morgan Stanley and RBC Capital, have published price targets in the $625ā$650 range.
Strategically, Northrop is focused on high-growth areas like autonomous systems, hyper sonics, missile defense, and space technologies, while maintaining a diversified portfolio across aeronautics, mission systems, and space. A record $89.7 billion backlog and rising international demand provide strong long-term visibility. Technically, shares have broken above resistance around $500 and re-entered the favored zone in the SIA S&P 500 Index Report. NOC is up 12.7% over the past month, 24.2% over the past quarter, and 25.8% year-to-date, significantly outperforming the S&P 500ās returns of 2.4%, 8.2%, and 9.6% over the same time frames. The SIA SMAX score is a perfect 10, indicating strength relative to other asset classes.
The point and figure chart also captures well the recent breakout past resistance and also provides more specificity with regard to the new support levels that may be emerging. This first level of support on the point and figure chart is now at the $532.74 level with even more support showing at the $473.06 level. Resistance on the other hand is calculated based on a vertical and horizontal point and figure counting methodology where two resistance points are illustrated at $662.40 and $717.00, where in between these readings we have the $700 whole number which might act as a psychological resistance level should shares continue to rally. Currently aerospace and defense is a favored sector within the SIA sector report although its bullish percent index is negative, but this could also be why shares of NOC are rallying while investors capitalize on other aerospace names where they are on the lookout for fresh sector ideas, and where Northrop Grumman potentially checks the boxes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
