NOC Northrop Grumman beat earnings estimates and raised guidance for full-year EPS today. Yet the stock is down more than 5%.
Doesn't make much sense but I'm looking at a long term bullish falling wedge and an oversold RSI at its lowest level in seven years on the weekly chart.
Not only do I expect a bounce off this lower wedge line in the near term but I expect a bullish break out of the wedge sometime in the next quarter before next ER.
Defense spending isn't going anywhere anytime soon. IMO I could see this stock making a push for the $375-$400 area by year end (assuming overall market conditions remain bullish to neutral). Might be a good day to pick up some long term OTM calls - definitely a lotto play, but I'm looking at Jan 2019 $400 calls going for around $0.40