We recently published a list of Top 10 Growing Aerospace and Defense Stocks For Trump’s Presidency. In this article, we are going to take a look at where Northrop Grumman Corporation (NYSE:NOC) stands against other top growing aerospace and defense stocks for Trump’s Presidency.
There is carnage in the US stock market as the major indices continue to shed points after last week’s aggressive selloff. The Dow was down over 2% with the S&P losing nearly 3% of its value. Nasdaq continued to be the worst of the three, down 4% by market close.
As tariffs continue to spook markets, we look at sectors that are either a safer bet amid the volatility, or provide near-term growth opportunities. In the Aerospace and Defense Industries, such an opportunity is currently presenting itself.
The US is signaling to the rest of the world that it needs to spend more on its own defense rather than relying on the US for military aid. This is making major economies of the world rethink their defense budget allocations.
Since most of the Western world buys its military equipment from the US, the money is eventually going to flow into US companies. This simple bullish thesis is what’s driving the industry and we believe it is time for investors to take positions in these stocks to benefit from this.
To come up with the list of 10 buy and forget Aerospace and Defense stocks for Trump’s Presidency, we only considered stocks with a market cap of at least $2 billion that are the best performers so far in 2025.
An aeronautics engineer inspecting a model aircraft engine in a factory setting.
Northrop Grumman Corporation (NYSE:NOC)
Northrop Grumman Corporation is a defense and aerospace technology company. The company operates through Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems segments.
NOC is expected to generate significant additional revenue from Europe’s increasing focus on defense spending. Donald Trump has already called out for Europe to get its act together and reduce its reliance on the US for defense. French President Emmanuel Macron has asked Europe to up its defense budget with some of the eastern European countries expected to significantly boost their spending.
NOC’s diverse customer base means it is protected from any negative impact on local defense spending while making full use of Europe’s increased spending in the wake of geopolitical issues.
The stock has a highest price target of $600 according to one analyst, with the median forecast at $547 according to ratings from 26 different analysts.
Overall, NOC ranks 9th on our list of top growing aerospace and defense stocks for Trump’s Presidency. While we acknowledge the potential of NOC as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as NOC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.