With Northrop Grumman Stock Sliding, Have You Assessed The Risk?
Northrop Grumman (NOC) stock is down 5.5% in a day. The recent slide reflects renewed concerns around President Trump’s threats to curb dividends, buybacks, and executive pay amidst slow production, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Northrop Grumman stands today.
- Size: Northrop Grumman is a $83 Bil company with $41 Bil in revenue currently trading at $577.01.
- Fundamentals: Last 12 month revenue growth of -0.1% and operating margin of 10.0%.
- Liquidity: Has Debt to Equity ratio of 0.21 and Cash to Assets ratio of 0.04
- Valuation: Northrop Grumman stock is currently trading at P/E multiple of 20.5 and P/EBIT multiple of 14.9
These metrics point to a Weak operational performance, alongside High valuation – making the stock Unattractive. For details, see Buy or Sell NOC Stock
That brings us to the key consideration for investors worried about this fall: how resilient is NOC stock if markets turn south? This is where our downturn resilience framework comes in. Suppose NOC stock falls another 20-30% to $404 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- NOC stock fell 23.5% from a high of $549.01 on 31 October 2022 to $420.07 on 5 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 22 July 2025
- Since then, the stock increased to a high of $637.95 on 8 October 2025 , and currently trades at $577.01
| NOC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -23.5% | -25.4% |
| Time to Full Recovery | 656 days | 464 days |
2020 Covid Pandemic
- NOC stock fell 29.9% from a high of $384.87 on 30 January 2020 to $269.86 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 8 October 2021
| NOC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -29.9% | -33.9% |
| Time to Full Recovery | 564 days | 148 days |
2018 Correction
- NOC stock fell 37.2% from a high of $360.03 on 5 April 2018 to $226.23 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 7 August 2019
| NOC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -37.2% | -19.8% |
| Time to Full Recovery | 226 days | 120 days |
2008 Global Financial Crisis
- NOC stock fell 59.5% from a high of $84.48 on 6 November 2007 to $34.20 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 8 July 2013
| NOC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -59.5% | -56.8% |
| Time to Full Recovery | 1,691 days | 1,480 days |
Feeling jittery about NOC stock? Consider portfolio approach.
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