Northrop Grumman rated 'Accumulate' on strong backlog, rising defense budgets, and attractive valuation.

Northrop Grumman is positioned well due to increasing Western defense budgets and strong leadership under CEO Kathy Warden. The company shows solid fundamentals with a large backlog growing 16% annually, accelerating revenue, stable cash flow margins of 8-9%, and decreasing leverage. Its valuation is attractive, trading under 2 times trailing twelve months (TTM) revenue and below 22 times TTM unlevered pretax free cash flow. Analysts suggest a potential price bottom near $426 and recommend accumulating shares with a stop-loss below this level to manage risk. This outlook reflects optimism about sector rotation and increased defense spending.

As discussions around defense stocks gain momentum, Northrop Grumman's shares are currently priced at USD 478.14 on Pluang, showing a 0.99% increase as of Oct 08, 2026 23:22 WIB. Despite a strong market cap of $67.26 billion, most Pluang users are selling, with 86% of orders being sell orders and only 14% buy orders. The stock's dividend yield stands at 2.09%, and the typical hold time on Pluang is 81 days, indicating a moderate-term interest among investors.