Northrop Grumman Dominates Defense Spending. Is the Stock a Buy?

One week after reporting earnings, General Dynamics (NYSE: GD), which saw its stock initially slump despite reporting strong sales and earnings growth, is just about back to where it started with its shares trading a few dollars below $300. That same one week after reporting earnings, though, Northrop Grumman (NYSE: NOC), which also reported strong sales growth, is seeing its stock up 10% and approaching $500 a share.What's the difference between these two defense stocks? Three words: book-to-bill. Let me explain.In almost every other respect, Northrop's performance mimicked General Dynamics' in the second quarter. Sales at the former grew a respectable 7% to $10.2 billion, and earnings per share rushed ahead 19% to $6.36. Free cash flow soared 80% year over year, to a strong $1.1 billion. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool