11 Worst Aviation Stocks to Buy According to Analysts

6. Northrop Grumman Corporation (NYSE:NOC)

Average Analyst Price Target Upside as of September 16: -1.20%

Number of Hedge Fund Holders: 49

Northrop Grumman Corporation (NYSE:NOC) is a significant player in the aerospace and defense sectors, with a deep-rooted history in aviation. The company is renowned for designing and producing a range of advanced aircraft for the U.S. military and international clients. One of its most iconic contributions to aviation is the B-2 Spirit, a stealth bomber that remains the world’s only known stealth aircraft capable of carrying nuclear and conventional weapons.

The company also plays a noteworthy role in unmanned aerial systems by developing platforms such as the RQ-4 Global Hawk, a high-altitude, long-endurance surveillance aircraft used by the U.S. Air Force.

Its aviation segment, Aeronautics Systems, supports a range of other aircraft such as the E-2 Hawkeye, a carrier-based early warning aircraft used by the U.S. Navy, and the T-38 Talon, a supersonic trainer for fighter pilots. Northrop Grumman’s (NYSE:NOC) technological advancement in aircraft design, stealth technology, and unmanned systems solidifies its position as a major innovator in modern aviation.

While the company is a major player in the aviation industry, analysts are currently a little bearish on it. 27 analysts have covered it and 14 of them keep a Hold rating on it, 1 analyst has an Underweight rating and 2 maintain a Sell rating on the company stock. The average analyst price target for the company is $515, which is 1.20% below its stock price on September 16.

On August 27, Northrop Grumman’s (NYSE:NOC) stock was downgraded by Alembic Global from Overweight to Neutral with a $560 price target.

Despite this pessimism shown by analysts, it is a fundamentally strong company and was awarded a $197.5 million U.S. Navy contract earlier in September to produce 56,000 FMU-139D/B Bomb Tactical Electronic Fuze systems.

The contract also includes additional components such as 500 fuze accessory kits, training fuze systems, bomb initiators, power cables, and closure rings. The products will support the Navy, Air Force, and Foreign Military Sales as part of the Joint Direct Attack Mission weapons program. The program is expected to be completed by 2029.

Moreover, in July, the company received a $1.5 billion contract to supply the US Navy and Japan with nine E-2D Advanced Hawkeye aircraft, with four designated for the US Navy and five for Japan. The contract also includes support services for both nations and its completion is expected by March 2029.