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LHX vs NOC
Which Stock Would AI Choose? L3Harris Technologies (LHX) vs. Northrop Grumman (NOC) Stock Comparison
Key Takeaways
- Both are defense pure-plays but diverge sharply in scale: NOC has a market capitalization near $74 billion, while LHX sits closer to $46 billion.
- Relative performance has been weak for both in 2026, with LHX down roughly 20%+ year to date and NOC down roughly 11–15% over the same span, despite record backlogs and rising demand.
- LHX carries an execution-risk overhang from an abrupt CEO departure and a delayed missile-business IPO, while NOC faces margin pressure on fixed-price programs.
- Both boast record or near-record backlogs — roughly $42 billion for LHX and about $105 billion for NOC — supporting long-term revenue visibility.
- Analyst consensus is "Buy" on both names, with average price targets implying meaningful upside from recent levels.
- NOC offers the broader, more diversified platform portfolio, whereas LHX skews toward missile propulsion, radios, sensors, and space systems.
Introduction
Investors weighing exposure to U.S. defense and aerospace often find themselves comparing LHX and NOC — two contractors with heavy exposure to strategic weapons, missiles, and space systems. This stock comparison is especially relevant for traders and long-term investors evaluating how rising global military spending translates into share-price performance, market positioning, and risk. While both companies have posted strong operational results and accumulated substantial backlogs, their shares have lagged in recent months, creating a nuanced picture of relative performance. Understanding the trade-offs between a focused, missile-heavy specialist and a diversified defense prime can help readers assess which profile better matches current market conditions and their own objectives.
LHX Overview and Recent Performance
L3Harris Technologies (LHX) is the sixth-largest U.S. defense contractor by sales and a leader in tactical radios, electronic warfare, sensors, space systems, and solid rocket motors. Formed through the 2019 merger of L3 Technologies and Harris, the company expanded its missile and propulsion footprint with the $4.7 billion acquisition of Aerojet Rocketdyne. In recent weeks, LHX's stock has traded near its 52-week low, pressured by two headline events rather than weak fundamentals: the board's abrupt removal of CEO Christopher Kubasik in August over misconduct allegations, and the postponement of a planned IPO (initial public offering) of its missile business to no earlier than mid-2027. These developments offset an otherwise strong operational record, including five consecutive quarterly earnings beats and a roughly $6 billion, seven-year THAAD propulsion contract from Lockheed Martin, plus follow-on awards for GMLRS (Guided Multiple Launch Rocket System) propulsion and VAMPIRE systems. Sentiment remains split between the company's robust demand outlook and the loss of near-term re-rating catalysts.
NOC Overview and Recent Performance
Northrop Grumman (NOC) is a diversified defense prime spanning aeronautics, defense systems, mission systems, and space. It anchors its portfolio on marquee platforms such as the B-21 Raider stealth bomber and the Sentinel ICBM (intercontinental ballistic missile), and it is one of only two U.S. companies producing solid rocket motors at scale. In recent market activity, NOC's shares have retreated from their 52-week high near $774 to the low-to-mid $500s, pressured by margin compression on fixed-price contracts and broader sector de-rating. Operating margin fell from 13.8% to 10.1% in the most recent quarter, though revenue rose about 5% year over year and the company raised its full-year sales and adjusted-profit guidance. A record backlog of roughly $105 billion and a newly announced gallium nitride chip, FORTITUDE, underscore its technology breadth. Analysts maintain a "Buy" consensus, though several firms have trimmed price targets and one recently initiated coverage with a "Sell" rating, reflecting caution about near-term profitability.
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Head-to-Head Comparison
Although LHX and NOC operate in the same sector, their profiles differ in meaningful ways. NOC is a larger, more diversified prime with leading positions in strategic bombers, ICBMs, and national security space, while LHX is a focused specialist in radios, sensors, and missile propulsion. Growth drivers also differ: LHX's story leans heavily on a missile and space ramp and a future missile-business IPO, whereas NOC's narrative centers on converting its $105 billion backlog into sustained revenue and margin recovery across B-21, Sentinel, and space programs. On momentum, both stocks have lagged the broader market, though NOC has shown somewhat shallower year-to-date declines. Risk factors contrast as well: LHX faces leadership transition and IPO-timing uncertainty, while NOC faces margin pressure on fixed-price contracts and elevated capital spending as B-21 production scales. Both carry concentrated exposure to U.S. defense budgets, a shared political and funding risk. Market positioning favors NOC on diversification and scale, but LHX offers a more leveraged play on the high-growth missile and propulsion cycle.
Tickeron AI Verdict
Based on observable trend consistency, stability, catalysts, and relative positioning, Tickeron's AI would likely tilt toward NOC at the margin. The company's diversified platform mix, record backlog, and shallower relative drawdown offer a more stable trend profile than LHX's leadership transition and delayed IPO overhang, which introduce greater near-term uncertainty. That said, the verdict is probabilistic rather than definitive: LHX presents a stronger growth catalyst in the missile and propulsion ramp, and its more pronounced pullback could appeal to strategies oriented toward mean reversion or higher-beta momentum. The AI's preference is best understood as a relative lean toward the steadier, better-diversified operator under current conditions, with the caveat that a resolution of LHX's executive and IPO questions could shift that balance.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is LHX is a Hold and NOC is a Hold.
LHX's RSI Oscillator recovers from oversold territory
The RSI Indicator for LHX moved out of oversold territory on October 08, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 27 similar instances when the indicator left oversold territory. In 20 of the 27 cases the stock moved higher. This puts the odds of a move higher at 74%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on LHX as a result. In 47 of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 56%.
The Moving Average Convergence Divergence (MACD) for LHX just turned positive on October 01, 2026. Looking at past instances where LHX's MACD turned positive, the stock continued to rise in 26 of 51 cases over the following month. The odds of a continued upward trend are 51%.
Following a +4.64% 3-day Advance, the price is estimated to grow further. Considering data from situations where LHX advanced for three days, in 157 of 305 cases, the price rose further within the following month. The odds of a continued upward trend are 51%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LHX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 58%.
LHX broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for LHX entered a downward trend on October 16, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 58 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.328) is normal, around the industry mean (4.941). P/E Ratio (24.951) is within average values for comparable stocks, (17.156). Projected Growth (PEG Ratio) (1.183) is also within normal values, averaging (2.564). Dividend Yield (0.020) settles around the average of (0.061) among similar stocks. P/S Ratio (2.055) is also within normal values, averaging (18.330).
The Tickeron Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating steady price growth. LHX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 67 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 72 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 76 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LHX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
NOC's RSI Indicator ascending out of oversold territory
The RSI Indicator for NOC moved out of oversold territory on October 08, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 31 similar instances when the indicator left oversold territory. In 19 of the 31 cases the stock moved higher. This puts the odds of a move higher at 61%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on NOC as a result. In 40 of 72 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 56%.
The Moving Average Convergence Divergence (MACD) for NOC just turned positive on October 14, 2026. Looking at past instances where NOC's MACD turned positive, the stock continued to rise in 26 of 45 cases over the following month. The odds of a continued upward trend are 58%.
Following a +4.88% 3-day Advance, the price is estimated to grow further. Considering data from situations where NOC advanced for three days, in 196 of 327 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NOC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 49%.
NOC broke above its upper Bollinger Band on October 16, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for NOC entered a downward trend on October 13, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 36 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 59 (best 1 - 100 worst), indicating steady price growth. NOC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 59 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is 73 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 74 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.130) is normal, around the industry mean (4.941). P/E Ratio (16.493) is within average values for comparable stocks, (17.156). Projected Growth (PEG Ratio) (3.350) is also within normal values, averaging (2.564). Dividend Yield (0.019) settles around the average of (0.061) among similar stocks. P/S Ratio (1.766) is also within normal values, averaging (18.330).
LHX | NOC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 26 | 64 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 58 Fair valued | 74 Overvalued | |
PROFIT vs RISK RATING 1..100 | 76 | 59 | |
SMR RATING 1..100 | 72 | 36 | |
PRICE GROWTH RATING 1..100 | 62 | 59 | |
P/E GROWTH RATING 1..100 | 67 | 73 | |
SEASONALITY SCORE 1..100 | n/a | 90 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
LHX's Valuation (58) in the null industry is in the same range as NOC (74) in the Aerospace And Defense industry. This means that LHX’s stock grew similarly to NOC’s over the last 12 months.
NOC's Profit vs Risk Rating (59) in the Aerospace And Defense industry is in the same range as LHX (76) in the null industry. This means that NOC’s stock grew similarly to LHX’s over the last 12 months.
NOC's SMR Rating (36) in the Aerospace And Defense industry is somewhat better than the same rating for LHX (72) in the null industry. This means that NOC’s stock grew somewhat faster than LHX’s over the last 12 months.
NOC's Price Growth Rating (59) in the Aerospace And Defense industry is in the same range as LHX (62) in the null industry. This means that NOC’s stock grew similarly to LHX’s over the last 12 months.
LHX's P/E Growth Rating (67) in the null industry is in the same range as NOC (73) in the Aerospace And Defense industry. This means that LHX’s stock grew similarly to NOC’s over the last 12 months.
| LHX | NOC | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 74% | 4 days ago 61% |
| Stochastic ODDS (%) | 4 days ago 54% | 4 days ago 59% |
| Momentum ODDS (%) | 4 days ago 56% | 4 days ago 56% |
| MACD ODDS (%) | 4 days ago 51% | 4 days ago 58% |
| TrendWeek ODDS (%) | 4 days ago 55% | 4 days ago 58% |
| TrendMonth ODDS (%) | 4 days ago 64% | 4 days ago 44% |
| Advances ODDS (%) | 4 days ago 51% | 4 days ago 60% |
| Declines ODDS (%) | 25 days ago 58% | 15 days ago 49% |
| BollingerBands ODDS (%) | 4 days ago 46% | 4 days ago 55% |
| Aroon ODDS (%) | 4 days ago 59% | 4 days ago 46% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
LHX’s FA Score shows that 0 FA rating(s) are green while NOC’s FA Score has 0 green FA rating(s).
- LHX’s FA Score: 0 green, 5 red.
- NOC’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
LHX’s TA Score shows that 4 TA indicator(s) are bullish while NOC’s TA Score has 4 bullish TA indicator(s).
- LHX’s TA Score: 4 bullish, 4 bearish.
- NOC’s TA Score: 4 bullish, 4 bearish.
Price Growth
LHX (@Aerospace & Defense) experienced а +4.87% price change this week, while NOC (@Aerospace & Defense) price change was +8.14% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was -4.71%. For the same industry, the average monthly price growth was -13.62%, and the average quarterly price growth was -19.39%.
Reported Earning Dates
LHX is expected to report earnings on Oct 29, 2026.
NOC is expected to report earnings on Oct 20, 2026.
Industries' Descriptions
@Aerospace & Defense (-4.71% weekly)Aerospace & Defense is one of largest industries in the U.S., mainly comprising the following areas: commercial airliners, military aircraft, missiles, space, and general aviation. Focused heavily on research & development, it is also one of the fastest growing industries. Military aircraft has the largest market share in the industry’s sales, followed by space systems, civil aircraft, and missiles. Aerospace exports, directly and indirectly, support more jobs than the export of any other commodity, according to a study by the U.S. Department of Commerce. Boeing Company, Lockheed Martin Corporation and General Electric Company are some of the most prominent players in this space.
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LHX and
Correlation & Price change
A.I.dvisor indicates that over the last year, LHX has been loosely correlated with NOC. These tickers have moved in lockstep 65% of the time. This A.I.-generated data suggests there is some statistical probability that if LHX jumps, then NOC could also see price increases.
NOC and
Correlation & Price change
A.I.dvisor indicates that over the last year, NOC has been closely correlated with LMT. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if NOC jumps, then LMT could also see price increases.