Northrop Grumman Corp (NYSE:NOC)

CAPS Rating: 4 out of 5

The Company provides technologically advanced, innovative products, services, and integrated solutions in information and services, aerospace, electronics, and shipbuilding to its global customers.

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Player Avatar avatar973 (< 20) Submitted: 11/8/2010 12:08:40 PM : Outperform Start Price: $56.02 NOC Score: -3.55

Best of Breed of defense contractors, who have been significantly discounted due to fears of government budgetary pressures and the wars winding down. However, this industry is likely to not only survive cuts by traditionally hawkish conservatives, but is likely to thrive due to increased exports from a cheap dollar and continued security concerns abroad.
NOC offers a solid dividend, and its dominant position in the UAV market offers it much stronger growth prospects relative to its industry peers.
A near term catalyst would be NOC's intention to spin-off its mature, lower margin ship-building operations, which would allow the company to focus its efforts in more profitable areas.

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