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NOC, $NOC, Defense Aerospace Giant Northrop Grumman Leads Short-Term Quality Screen

|Includes: Northrop Grumman Corporation (NOC)
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November 30, 2010
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Defense is the Best Offense?

NOC, $NOC, Defense Aerospace Giant Northrop Grumman Leads Short-Term Quality Screen

   Today, we screened our entire database of more than 5000 stocks trading on US exchanges in an effort to find the best of the best.  We used criteria of market price > $3.00, volume > 100k shares/day, composite score > 700, and one-month forecast ranking > 98.  This sort of screen brings out big market cap stocks with good forecasts, valuation, p/e ratios, etc.  We only got 14 results from this screen, and 13 of them were ranked "Strong Buy."

  Near the top of our list was the Northrop Grumman Corporation (NYSE:NOC).  ValuEngine has issued a STRONG BUY recommendation for Northrop Grumman on Nov. 30, 2010. Based on the information we have gathered and our resulting research, we feel that Northrop Grumman has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE company size, volatility and P/E ratio.

  Based on available data as of Nov. 30, 2010, we believe that NOC should be trading at $69. This makes NOC 11.28% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For NOC, we base this on actual earnings per share (NYSEARCA:EPS) for the previous four quarters of $6.06, forecasted EPS for the next four quarters of $6.45, and correlations to the 30- year Treasury bond yield of 4.15%.

 Northrop Grumman Corporation is a high technology company providing innovative solutions in systems integration, defense electronics and information technology for its U.S. and international military, government and commercial customers, as a prime contractor, principal subcontractor, team member or preferred supplier.

  Subscribers can check out the latest figures on Northrop Grumman Corporation from our models HERE.

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Market Indices Data
  Latest Change YTD
Dow Jones
11,057.30 4.81 6.03%
NASDAQ Composite
2,508.30 -16.92 10.54%
Russell 2000
729.76 -2.19 15.09%
S&P 500
1,186.28 -1.48 6.38%

 

ValuEngine Market Overview
Summary of VE Stock Universe
Stocks Undervalued
49.49%
Stocks Overvalued
50.51%
Stocks Undervalued by 20%
22.95%
Stocks Overvalued by 20%
20.9%

 

ValuEngine Sector Overview
Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
Basic Materials 0.14% 3.21% 23.74% 18.34% overvalued 61.92% 33.81
Oils-Energy 0.17% 6.03% 12.66% 16.73% overvalued 43.37% 43.19
Multi-Sector Conglomerates -0.32% 2.63% 18.64% 7.87% overvalued 31.61% 32.41
Auto-Tires-Trucks 0.16% 3.32% 40.77% 5.01% overvalued 51.06% 34.84
Transportation -0.25% 1.50% 20.08% 4.34% overvalued 29.82% 39.47
Retail-Wholesale -0.24% 4.94% 16.83% 3.96% overvalued 53.38% 26.18
Industrial Products 0.02% 3.93% 17.89% 2.86% overvalued 28.07% 27.12
Utilities -0.53% -0.29% 4.24% 1.87% overvalued 16.47% 27.46
Consumer Staples -0.08% 2.97% 7.33% 1.24% overvalued 17.86% 21.89
Aerospace -0.03% 0.04% 17.59% 0.86% overvalued 28.76% 19.33
Computer and Technology -0.45% 2.98% 23.30% 0.43% overvalued 34.07% 40.40
Finance 0.15% 0.41% 13.60% 0.01% overvalued 15.90% 29.58
Business Services -0.15% 3.16% 8.21% 0.61% undervalued 21.82% 29.59
Consumer Discretionary -0.34% 3.14% 18.93% 2.32% undervalued 27.86% 30.41
Construction 0.04% 2.85% 1.60% 7.26% undervalued 7.00% 37.53
Medical -0.14% 2.12% 11.37% 8.17% undervalued 17.92% 33.42

 

 
 
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Disclosure: no positions