- AI Stock Portfolio For 2026: Northrop Grumman (NOC) Among Top 10 Picks
May 12, 2026
We just covered
Grok’s Latest Stock Portfolio in 2026: Elon Musk’s AI Chatbot’s Top 10 Stock Picks. Northrop Grumman (NYSE:NOC) ranks #5 (see Grok’s Latest Stock Portfolio in 2026: AI Assistant’s Top 5 Stock Picks).
Number of Hedge Funds: 62
Northrop Grumman’s (NYSE:NOC) wide moat comes from its edge in stealth aircraft. It developed the B-2 Spirit and is now building the B-21 Raider, the world’s first sixth-generation bomber. It also has long-term programs like the Sentinel nuclear missile system, which are difficult for competitors to enter. Because of this track record and expertise in highly sensitive defense systems, the U.S. government strongly relies on Northrop for key strategic projects.
Demand is rising from U.S. defense budget growth, nuclear/space modernization, and allied needs amid great-power competition. The record ~$95-96 billion backlog provides strong multi-year visibility.
Northrop Grumman recently made news on U.S. Air Force increasing B-21 bomber production by 25%. The company also raised its 2026 capital spending to support expansion for missile and aircraft programs.
Copyright: chalabala / 123RF Stock Photo
While we acknowledge the potential of NOC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
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- Picogrid Joins U.S. Army’s “Right to Integrate” Sprint at Fort Carson to Accelerate Vendor-Neutral Interoperability
May 12, 2026
IMG_4161 2
Disclaimer: The appearance of the U.S. Department of War visual information does not imply or constitute DOW endorsement.
EL SEGUNDO, Calif., May 12, 2026 (GLOBE NEWSWIRE) -- The U.S. Army has invited Picogrid to join its newly launched "Right to Integrate" (R2I) hackathon at Fort Carson, Colorado. The initiative exists to address a fundamental problem: the systems it has purchased from across the defense industrial base often do not talk to each other. The sprint aims to change that by opening key systems up for integration.
The event marks a major step toward an open defense ecosystem, and Picogrid is proud to contribute alongside the defense industry's leading prime contractors, including Raytheon, Lockheed Martin, Northrop Grumman, Anduril, and others.
Exposing interfaces is a vital first step, but true interoperability goes beyond shared documentation. Translating proprietary data formats in real time at the tactical edge demands an active approach. For instance, Picogrid is bringing its Expeditionary C2 Node (ECN) platforms as an example orchestration layer that could be used to operationalize the open interfaces driven by this event.
Picogrid brings a distinct, operational track record to the Army’s R2I sprint having successfully integrated counter-UAS air defense capabilities in an operational environment. Through its Legion software and ECNs, Picogrid’s technology has proven its ability to rapidly network and orchestrate siloed data formats from many vendors into a cohesive system, providing operators a unified picture within hours without modifying the underlying hardware.
"The Army has made it clear that we can no longer afford to fight from a swivel chair across disaggregated systems, and mandating open interfaces is a critical first step," said Zane Mountcastle, Co-Founder and CEO of Picogrid. "Integration at the tactical edge requires an active software fabric that orchestrates open interfaces into a synchronized system. We're honored to bring our experience to Fort Carson and prove that vendor lock-in is a thing of the past."
Over the course of the 30-day sprint, Picogrid will work alongside Army leaders, technical experts, and leading defense companies to open our systems, collapse latency, and streamline decision-making. Simultaneously, Picogrid will work alongside the Army and other companies to incorporate real-time lessons learned from contingency operations to help inform the way ahead and ensure the solution is grounded in the realities of today’s operational environment. The goal is simple: prove that the Army's systems can work together, regardless of who built them.
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About Picogrid
Picogrid is a technology company that builds products to integrate mission-critical systems. Its hardware and software products connect sensors, unmanned platforms, and digital systems, enabling unified control and data flow in defense and industrial environments. Deployed globally and supported by leading Silicon Valley investors, Picogrid delivers infrastructure for mission execution across land, sea, air, and space. Learn more at picogrid.com.
Press Contact:
Casey Dell'lsola
REQ for Picogrid
picogrid@req.co
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/176f9e7a-0796-40dd-8a00-d3f52c418517
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- 1 Large-Cap Stock with Promising Prospects and 2 Facing Headwinds
May 12, 2026
Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.
This is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. That said, here is one large-cap stock that still has big upside potential and two whose existing offerings may be tapped out.
Two Large-Cap Stocks to Sell:
Zoom (ZM)
Market Cap: $31.93 billion
Once the verb that defined remote work during the pandemic ("let's Zoom later"), Zoom (NASDAQ:ZM) provides a cloud-based platform for video meetings, phone calls, team chat, and collaboration tools that helps businesses and individuals connect virtually.
Why Do We Think ZM Will Underperform?
Products, pricing, or go-to-market strategy may need some adjustments as its 4% average billings growth over the last year was weak Platform has low switching costs as its net revenue retention rate of 98% demonstrates high turnover Projected sales growth of 4.2% for the next 12 months suggests sluggish demand
At $107.18 per share, Zoom trades at 6.3x forward price-to-sales. Check out our free in-depth research report to learn more about why ZM doesn’t pass our bar.
Northrop Grumman (NOC)
Market Cap: $78.44 billion
Responsible for the development of the first stealth bomber, Northrop Grumman (NYSE:NOC) specializes in providing aerospace, defense, and security solutions for various industry applications.
Why Are We Out on NOC?
The company has faced growth challenges as its 2.6% annual revenue increases over the last five years fell short of other industrials companies Anticipated sales growth of 5.4% for the next year implies demand will be shaky Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 3.1% annually
Northrop Grumman is trading at $551.90 per share, or 19.8x forward P/E. If you’re considering NOC for your portfolio, see our FREE research report to learn more.
One Large-Cap Stock to Watch:
Keurig Dr Pepper (KDP)
Market Cap: $38.8 billion
Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.
Why Does KDP Stand Out?
Products are seeing elevated demand as its unit sales averaged 4.8% growth over the past two years Scale advantages are evident in its $16.94 billion revenue base, which provides operating leverage when demand is strong
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Keurig Dr Pepper’s stock price of $28.52 implies a valuation ratio of 12x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
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- Northrop Grumman Extends Autonomy And Propulsion Reach With DARPA And Australia
May 12, 2026
Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide.
Northrop Grumman (NYSE:NOC) has started flight tests of its XRQ-73 SHEPARD uncrewed aircraft for DARPA, marking a key step for hybrid-electric propulsion in military aviation. The company has been formally engaged by the Australian government to establish domestic solid rocket motor production, expanding its role in allied missile and propulsion supply chains.
For investors tracking defense and aerospace, these updates highlight where Northrop Grumman is applying engineering and program resources. The XRQ-73 work with DARPA centers on uncrewed and hybrid-electric technologies, areas that many defense budgets are monitoring closely as they evaluate future aircraft, surveillance and communications platforms.
The new Australian solid rocket motor engagement points to deeper industrial cooperation between allies and an effort to build more resilient supply lines for missiles and propulsion systems. For anyone following NYSE:NOC, these projects help outline how the company is positioning its capabilities across autonomy and propulsion as governments reassess long term defense requirements.
Stay updated on the most important news stories for Northrop Grumman by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Northrop Grumman.NYSE:NOC Earnings & Revenue Growth as at May 2026
📰 Beyond the headline: 2 risks and 4 things going right for Northrop Grumman that every investor should see.
For you as an investor, these two updates sit in different but related parts of Northrop Grumman's business. The XRQ-73 SHEPARD flight tests for DARPA focus on uncrewed, hybrid-electric aircraft, which tie directly into the company's long history in autonomy, with over 500,000 autonomous flight test hours reported. That kind of test activity can be an indicator of how deeply integrated the company is in U.S. research and development priorities, an area where peers like Lockheed Martin and RTX are also active. The Australian solid rocket motor engagement, by contrast, is about production, long-range strike capability and local supply chains, which can be more comparable with missile and propulsion work at RTX and General Dynamics.
How This Fits Into The Northrop Grumman Narrative
The DARPA flight tests and Australian propulsion project both align with the narrative's focus on advanced autonomous systems and growing solid rocket motor capacity as potential drivers of higher margin segments. Greater reliance on complex R&D programs and capital-intensive propulsion facilities also reflects the narrative's caution about execution risk and program-specific setbacks that could pressure margins. The specific Australian industrial engagement, with its emphasis on domestic long-range strike capability and local suppliers, is not explicitly covered in the narrative and may add an extra dimension to the international growth story.
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Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Northrop Grumman to help decide what it's worth to you.
The Risks and Rewards Investors Should Consider
⚠️ Complex defense programs can face schedule changes or cost pressure, which may affect how quickly work on XRQ-73 and Australian solid rocket motors translates into stable earnings. ⚠️ Building local missile and propulsion capacity for allies can attract regulatory and political scrutiny, which could influence contract terms or future award decisions. 🎁 Closer ties to DARPA and the Australian government may support contract visibility across autonomy and long-range strike, areas the narrative already highlights as important for the company. 🎁 The projects touch on two of the four rewards analysts have flagged, including the company's positioning on value metrics and its role in higher quality defense programs that some investors see as relatively resilient.
What To Watch Going Forward
From here, it is worth watching whether XRQ-73 testing progresses into follow-on work or related autonomous systems contracts, and how quickly the Australian solid rocket motor initiative moves from engagement to sustained production. Any updates on program scope, timing or funding could influence how much these projects contribute relative to other large U.S. contracts and international opportunities. Investors may also want to compare Northrop Grumman's progress on autonomy and propulsion with peers like Lockheed Martin, RTX and General Dynamics to see how competitive positions are evolving across these segments.
To stay informed on how the latest news impacts the investment narrative for Northrop Grumman, visit the community page for Northrop Grumman to follow the top community narratives.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NOC.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Lockheed Martin Stock Rises 10.8% in 6 Months: More Upside Ahead?
May 11, 2026
Lockheed Martin’s LMT shares have risen 10.8% in the past six months, outperforming the Zacks Aerospace-Defense industry’s decline of 8.3%. The company continues to benefit from its large backlog and support from long-term munitions agreements, creating demand visibility. Zacks Investment Research
Image Source: Zacks Investment Research
Other defense stocks like Northrop Grumman NOC boast a solid presence in defense and cybersecurity programs, with their product portfolio well positioned in high-priority categories. General Dynamics’ GD strong number of contract wins and broad global presence help maintain steady growth momentum. Shares of Northrop Grumman and General Dynamics have declined 3% and 1.7%, respectively, over the past six months.
Considering Lockheed Martin’s outperformance relative to its industry, investors may be wondering whether now is a good time to add the stock to their portfolios. Let’s examine the factors that have driven the share price gains and assess the company’s investment prospects to make a more informed decision.
Tailwinds for LMT Stock
In May 2026, Lockheed Martin and Lithuania’s Ministry of National Defence have officially unveiled the country’s inaugural HIMARS launchers. The deal strengthens the company’s international defense backlog, expands long-term missile and launcher sales, and deepens its strategic position within NATO’s eastern side.
Lockheed Martin continues to convert demand for key franchise programs into sizable awards, supporting revenue visibility over a multiyear horizon. The order flows, together with continued activity across strategic missile, combat systems and sustainment work, underpinned a backlog of $186.4 billion as of March 29, 2026. Management expects about 34% of backlog to be recognized over the next 12 months and about 58% over the next 24 months, supporting the long-term revenue base.
The F-35 remains a central franchise program for Lockheed Martin’s Aeronautics segment, combining production, upgrades and long-duration sustainment work. The program represented about 27% of consolidated sales in the first quarter of 2026, and Aeronautics sales were partially supported by higher F-35 sustainment volume even as other aircraft programs faced timing headwinds.
Lockheed Martin continues to see demand for integrated air and missile defense products, as well as tactical and strike missiles, while maintaining a broad global rotorcraft and combat systems footprint. It signed a $1.5 billion contract with the Peruvian Air Force for 12 Block 70 F-16 fighters, with an opportunity for a second squadron, further expanding its presence in Latin America.
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Challenges for LMT Stock
Lockheed Martin continues to face execution and cost-estimate risk on complex programs, particularly where fixed-price elements magnify the impact of schedule and performance issues. In the first quarter of 2026, the company recorded unfavorable profit adjustments on the F-16 program due to production performance issues and development delays, as well as on the C-130 program due to ongoing integration challenges and delivery delays.
Estimates for LMT Stock
The Zacks Consensus Estimate for 2026 earnings per share (EPS) has risen 0.03% over the past 60 days. LMT’s long-term (three to five years) earnings growth rate is 18.48%. Zacks Investment Research
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Northrop Grumman’s 2026 EPS has declined 0.39% over the past 60 days. NOC’s long-term earnings growth rate is 5.25%. The Zacks Consensus Estimate for General Dynamics’ 2026 EPS has increased 0.36% over the past 60 days. GD’s long-term earnings growth rate is 9.7%.
LMT’s Earnings Surprise History
The company beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 9.44%.Zacks Investment Research
Image Source: Zacks Investment Research
LMT’s Debt Position
Currently, the company’s total debt to capital is 73.43%, higher than the industry’s average of 48.64%. Zacks Investment Research
Image Source: Zacks Investment Research
LMT’s time-to-interest earned ratio at the end of the first quarter of 2026 was 6.1. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
LMT Stock Trades at a Discount
In terms of valuation, LMT’s forward 12-month price-to-sales (P/S) is 1.46X, a discount to the industry’s average of 2.48X. This suggests that investors would be paying a lower price relative to the company’s expected sales growth compared with its peer group.Zacks Investment Research
Image Source: Zacks Investment Research
What Should an Investor Do Now?
Lockheed Martin is strengthening its global defense position through new international HIMARS and fighter aircraft partnerships, reinforcing long-term demand across missile systems, sustainment, and combat platforms. Its major defense programs, especially the F-35 and integrated missile defense systems, continue to support strong backlog visibility and expand the company’s presence across NATO and other international markets.
Considering its financial pressures and higher debt levels, new investors should wait and look for a better entry point. Investors who already hold this Zacks Rank #3 (Hold) stock may consider retaining it, given the company’s strong earnings growth outlook.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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- The Pentagon Has Released UFO Files to the Public. What Caught Our Attention.
May 9, 2026
Under the direction of President Donald Trump, the Pentagon on Friday released dozens of files totaling thousands of pages about “Unidentified Anomalous Phenomena.” Investors, however, may be thinking about them as unidentified flying objects, or UFOs. The first interesting tidbit was about an aircraft that in 2023 made “multiple 90-degree turns at an estimated 80 mph.” That is indicative of potentially impressive technology in propulsion, control, and materials science that would interest investors looking at jet and jet engine makers, such as Lockheed Martin and GE Aerospace.
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- Joby Aviation Incurs Loss in Q1, Surpasses Revenue Estimates
May 8, 2026
Joby Aviation, Inc. (JOBY)reported a first-quarter 2026 loss of 21 cents per share (on an adjusted basis), which matched the Zacks Consensus Estimate. In the year-ago reported quarter, JOBY incurred a loss of 18 cents.
Quarterly revenues came in at $24.24 million, beating the Zacks Consensus Estimate of $19 million.
Joby Aviation, Inc. Price, Consensus and EPS SurpriseJoby Aviation, Inc. Price, Consensus and EPS Surprise
Joby Aviation, Inc. price-consensus-eps-surprise-chart | Joby Aviation, Inc. Quote
In the March-end quarter, total operating expenses increased 57.9% year over year due to higher research and development (up 32.2%) and selling, general, and administrative (up 112.2%) costs.
Adjusted EBITDA in the first quarter of 2026 was a loss of $178.54 million, which includes employee costs and support associated with the development, certification and manufacturing of the aircraft and operations of Blade.
JOBY exited the first quarter with cash and cash equivalents of $874.52 million compared with $240.81 million at the end of the prior quarter. Long-term debt was $701.05 million at the end of the reported quarter.
Full year 2026 total revenues are expected to be in the range of $105 million to $115 million. The Zacks Consensus Estimate is currently pegged at $109.03 million.
Currently, JOBY carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q1 Performance of Some Other Stocks Belonging to JOBY’s Industry
RTX Corporation’s RTX first-quarter 2026 adjusted earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
Northrop Grumman CorporationNOC reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.
The Boeing CompanyBA incurred an adjusted loss of 20 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 95 cents. The bottom line improved from the year-ago quarter’s reported loss of 49 cents.
Revenues amounted to $22.22 billion, which outpaced the Zacks Consensus Estimate of $21.87 billion by 3.5%. The top line also surged 14% from the year-ago quarter’s reported figure of $19.5 billion.
Story Continues
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This article originally published on Zacks Investment Research (zacks.com).
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- Embraer's Q1 Earnings Miss Estimates, Revenues Increase Y/Y
May 8, 2026
Embraer S.A. EMBJ reported first-quarter 2026 adjusted earnings of 19 cents per American Depository Share (ADS), which missed the Zacks Consensus Estimate of 29 cents by 34.5%. The bottom line also declined 52.5% from 40 cents per share reported in the prior-year quarter.
The company registered quarterly GAAP earnings of five cents per ADS compared with 10 cents in the first quarter of 2025.
Embraer’s Total Revenues
Revenues totaled $1.45 billion, up 31.2% year over year, driven by higher revenues from the company’s Executive Aviation, Defense and Security, Commercial Aviation and Services & Support segments. The figure also surpassed the Zacks Consensus Estimate of $1.33 billion by 8.7%.
EMBJ’s Order & Delivery
Embraer delivered 44 jets in the quarter. It delivered 10 commercial and 29 executive (16 small and 13 medium) jets compared with seven commercial and 23 executive (14 small and 9 medium) jets in the prior-year quarter. The company delivered five military jets in the first quarter of 2026.
The backlog at the end of the first quarter was $32.1 billion, much higher than the prior-year quarter’s figure of $26.4 billion.
Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS SurpriseEmbraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
Embraer-Empresa Brasileira de Aeronautica price-consensus-eps-surprise-chart | Embraer-Empresa Brasileira de Aeronautica Quote
EMBJ’s Segmental Details
Executive Aviation: This segment recorded revenues worth $418 million, up 30% year over year.
Defense & Security: This unit generated revenues of $227 million, which improved 63% year over year.
Commercial Aviation: This segment recorded revenues worth $293 million, up 45% year over year.
Services & Support: This segment recorded revenues worth $490 million, up 15% year over year.
Others: This segment includes EMBJ’s Agricultural Aviation, cyber division Tempest and other businesses. Revenues for this segment were $18.3 million, up 21% year over year.
Operational Highlights for EMBJ
Embraer’s operating income amounted to $81.7 million compared with $51.2 million in the first quarter of 2025.
The company posted an adjusted EBITDA of $143.6 million, which increased 32.2% from the year-earlier quarter’s figure.
Financial Update for EMBJ
As of March 31, 2026, EMBJ’s cash and cash equivalents amounted to $1.32 billion compared with $1.95 billion as of Dec. 31, 2025.
Its adjusted free cash outflow (without Eve) for the first quarter of 2026 totaled $447.1 million compared with $385.8 million in the prior-year period.
The net cash outflow from operating activities during the first three months of 2026 amounted to $309.1 million compared with $102.8 million during the first three months of 2025.
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Embraer’s 2025 Guidance
Embraer expects to deliver 80-85 commercial jets and 160-170 Executive Aviation jets.
EMBJ anticipates generating revenues in the range of $8.2-$8.5 billion. The Zacks Consensus Estimate for revenues is pegged at $8.44 billion, which lies above the midpoint of the company’s guided range.
Embraer expects the adjusted EBIT margin to be between 8.7% and 9.3%.
Adjusted free cash flow is projected to be $200 million or more.
EMBJ’s Zacks Rank
Embraer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
RTX Corporation’s RTX first-quarter 2026 adjusted earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
Northrop Grumman Corporation NOC reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.
The Boeing Company BA incurred an adjusted loss of 20 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 95 cents. The bottom line improved from the year-ago quarter’s reported loss of 49 cents.
Revenues amounted to $22.22 billion, which outpaced the Zacks Consensus Estimate of $21.87 billion by 3.5%. The top line also surged 14% from the year-ago quarter’s reported figure of $19.5 billion.
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The Boeing Company (BA) : Free Stock Analysis Report
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
RTX Corporation (RTX) : Free Stock Analysis Report
Embraer-Empresa Brasileira de Aeronautica (EMBJ) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- Archer Aviation Q1 Earnings Loom: What Should You Do Now?
May 8, 2026
Archer Aviation ACHR is slated to report first-quarter 2026 results on May 11, 2026, after market close.
The Zacks Consensus Estimate for the bottom line is pegged at a loss of 25 cents per share, implying a decline from the prior-year quarter’s reported loss of 13 cents. The Zacks Consensus Estimate for the top line is pegged at $1.8 million, implying an improvement.Zacks Investment Research
Image Source: Zacks Investment Research
ACHR’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average surprise being 13.41%.Zacks Investment Research
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for ACHR this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
ACHR has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Defense Releases
RTX Corporation’s RTX first-quarter 2026 adjusted earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
Northrop Grumman Corporation NOC reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.
Key Factors to Consider
Archer Aviation continues to advance its electric air taxi strategy through collaborations with U.S. cities, transportation authorities and international partners to support the integration of eVTOL aircraft into commercial transportation networks.
Archer Aviation has also expanded partnerships in the Middle East and continued strengthening its U.S. operational infrastructure through aviation asset development and technology testing initiatives.
These developments are likely to have supported the company’s performance in the to-be-reported quarter.
Price Performance & Valuation
ACHR’s shares have exhibited a downward trend, losing a notable percentage over the past year. Specifically, the stock lost 28.3% in the time frame, underperforming the Zacks aerospace-defense industry’s growth of 9.3%. It has also underperformed the broader Zacks Aerospace sector’s return of 13.8% as well as the S&P 500’s gain of 35.4%.
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Zacks Investment Research
Image Source: Zacks Investment Research
Shares of RTX and Northrop Grumman have surged 36.1% and 13.7%, respectively.
In terms of valuation, ACHR’s trailing 12-month price-to-book (P/B) is 2.12X, a discount to its industry’s average of 5.81X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with its industry’s P/B ratio.Zacks Investment Research
Image Source: Zacks Investment Research
Investment Thesis
ACHR offers solid near-term potential but its long-term business outlook remains uncertain. The eVTOL industry is still in its early stages, and the company’s success will depend not only on developing and certifying its aircraft but also on how market demand grows over time.
Public acceptance of eVTOL aircraft may take time, especially due to concerns around safety, noise and affordability. If adoption is slower than expected, it could limit ACHR’s growth opportunities.
The company is also facing supply-chain challenges and a shortage of skilled labor, which may affect production timelines. Any delay in launching its Midnight aircraft could postpone revenue generation and impact near-term financial results.
What Should an Investor do Now?
To conclude, Archer Aviation has strong long-term growth potential driven by its expanding partnerships, regulatory progress and efforts to commercialize its eVTOL aircraft. However, the company still faces near-term challenges, including industry uncertainty, supply-chain issues and the slow adoption of urban air mobility solutions.
While Archer Aviation continues to strengthen its business foundation, the stock may remain volatile in the near term. Existing investors may consider holding the stock given its long-term prospects, while new investors may prefer to wait for a better entry point and more clarity on the company’s commercial launch plans.
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- NOC Outperforms Industry in the Past Year: Should You Buy the Stock?
May 7, 2026
Northrop Grumman NOC stock has risen 14% in the past year, outperforming both the Zacks Aerospace-Defense industry’s growth of 9.2% and the broader Zacks Aerospace sector’s gain of 13.8%. However, it came below the S&P 500’s return of 35.4% in the same time frame.Zacks Investment Research
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Other industry players, such as Huntington Ingalls Industries HII and General Dynamics GD, have also delivered a similar stellar performance in the past year. Shares of HII and GD have risen 36.6% and 28.4%, respectively, in the said period.
Given NOC’s strong recent performance, some investors may feel inclined to buy the stock quickly. However, it is important to evaluate whether the company’s fundamentals can support sustainable long-term growth or if the recent rally is temporary. A clear understanding of NOC’s growth outlook and associated risks is essential for making a well-informed investment decision.
Tailwinds for NOC
NOC’s share gains in recent months appear to be supported by its strong financial performance, recent contract wins and technology developments. In April 2026, NOC reported solid results, with net sales of $9.88 billion, up 4.4% year over year. The company’s adjusted earnings of $6.14 per share also increased 1.3% from the prior-year level.
In May 2026, NOC announced that its XRQ-73 hybrid-electric uncrewed aircraft started flight testing at Edwards Air Force Base in California. Developed for DARPA’s SHEPARD program, the aircraft is designed to support next-generation propulsion technology for lightweight autonomous aircraft. Its hybrid-electric system aims to improve fuel efficiency, reduce emissions and increase operational flexibility for future missions.
Earlier in the month, NOC won a U.S. Army contract for the second phase development of its Improved Threat Detection System (ITDS). The award followed successful flight tests during the first phase, where the company’s technology demonstrated strong threat detection capabilities. The ITDS is expected to improve aircraft survivability and help Army crews respond more effectively to evolving threats.
Moreover, NOC was selected by the Commonwealth of Australia to participate in discussions related to establishing solid rocket motor manufacturing capabilities in Australia. The initiative is aimed at expanding local defense manufacturing while providing Australia access to NOC’s advanced propulsion technologies.
For defense contractors like Northrop Grumman, continued technology advancements, military development programs and international defense partnerships remain important growth drivers.
Story Continues
Estimates for NOC’s 2026 Sales and Earnings
The Zacks Consensus Estimate for NOC’s 2026 sales implies year-over-year growth of 4.7%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 6.3%.Zacks Investment Research
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The downward revision in its 2026 and 2027 earnings over the past 60 days suggests investors’ decreasing confidence in this stock’s earnings generation capabilities.Zacks Investment Research
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NOC’s Valuation
In terms of valuation, NOC’s forward 12-month price-to-earnings (P/E) is 19.52X, a discount to the industry average of 32.24X. This suggests that investors will be paying a lower price than the company's expected earnings growth compared with its industry average.Zacks Investment Research
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Huntington is trading at a discount in comparison with NOC. HII’s forward 12-month P/E is 17.80X, while General Dynamics’ forward 12-month P/E is 20.48X.
Liquidity Position of NOC
NOC has a current ratio of 1.15. The ratio, being more than one, indicates that NOC possesses sufficient capital to pay off its short-term debt obligations.
Its industry peers, Huntington and General Dynamics, also maintain current ratios above one. HII has a current ratio of 1.19, while GD holds 1.38.
Risks to Take Note of Before Choosing NOC
Rising economic tensions and shifting trade policies — especially new U.S. tariffs and retaliatory measures — could affect the global defense market. Recent legal changes led the United States to replace certain tariffs (previously under IEEPA) with new ones, including a 10% global tariff. The overall impact is uncertain and depends on factors like how long tariffs last, possible exemptions or reversals, and responses from other countries. Despite these uncertainties, the company believes that it is monitoring the situation and does not expect tariffs to have a significant negative impact on the business.
What Should an Investor do Now?
Given NOC’s discounted valuation and strong liquidity position, the stock appears reasonably valued with stable long-term prospects. However, declining earnings estimates and ongoing challenges may weigh on near-term performance. Existing investors may consider holding the stock, while new investors could wait for better earnings visibility before taking a position.
NOC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
General Dynamics Corporation (GD) : Free Stock Analysis Report
Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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