Northrop Grumman leads weekly gains in industrial stocks
Asanka Ratnayake/Getty Images News

Northrop Grummanâs (NYSE:NOC) stock advanced 2.6% this week, the best performance among widely held, large-cap industrial companies.
The Industrial Select Sector SPDR ETF (NYSEARCA:XLI), whose holdings include the biggest companies in the manufacturing sector, edged upward by 0.2% to narrow its year-to-date loss to -1.5%.

The slim gains came during a volatile week for markets amid continued fears about the financial health of U.S. banks. The Standard & Poorâs 500 stock index (SP500) gained 1.4%, the Dow Jones Industrial Average (DJI)advanced 1.2% and the Nasdaq Composite (COMP.IND) climbed 1.7%.
Northrop Grumman (NOC) on Monday said it will begin making whatâs known as the multi-role electronically scanned array sensor for the U.S. Air Forceâs E-7 radar jet.

U.S. Air Force E-7 equipped with multi-role electronically scanned array (MESA) sensor on its fuselage. Photo: Boeing
Boeing (NYSE:BA) last month was awarded a contract for as much as $1.2 billion to start work on two new models of the E-7. The Air Force said it wants to have 26 E-7s by 2032 to replace its aging E-3 airborne warning and control system (AWAC) planes.
Bombardier's (BBD.A:CA) stock rose 8.1% during a week when the aircraft maker lifted its revenue and free cash flow goals for 2025 amid stronger demand for private planes. 

Analyst Ratings
Among notable stock research, Howmet Aerospace (NYSE:HWM) was rated as a Buy in new coverage by Jefferies. The maker of engine products is poised for profit growth with the recovering demand for aircraft, Jefferies said. The financial services firm set a price of $50 a share on Howmet (HWM), based on a P/E multiple of 20.6 times estimated EPS of $2.45 for 2025.
Crane Holdings (CR) on Friday was downgraded to Neutral from an investment rating of Buy by analysts at UBS. They said the industrial products company may face difficulties in spinning off its payments business into a separate publicly traded company called Crane NXT.
Roper Technologies (ROP) on Wednesday was upgraded to Neutral from an investment rating of Underweight by analysts at J.P. Morgan. They said the industrial-technology company is fairly valued based on its revenue and free cash flow outlook.
Roper Technologies (ROP) on Sunday was rated Buy in new coverage by analysts at Truist Securities. They said Roper increased the portion of its sales from higher-margin software from about 41% in 2018 to 75% currently, while its acquisition and divestiture strategy is a driver of growth.
Deere (NYSE:DE) was named as the best stock to sell short in a March 19 report from an analyst at research firm Hedgeye. It said stocks of machinery companies tend to lag the Federal Reserveâs changes to interest rates.
Armstrong World Industries (AWI) on Tuesday was downgraded to Hold from an investment rating of Buy by analysts at Deutsche Bank. They said the maker of building materials faces reduced demand for non-residential construction amid worries about regional banks.
Dow (DOW) on Sunday was upgraded to Buy from an investment rating of Hold by analysts at Deutsche Bank. They said the chemical makerâs stock has declined to an attractive valuation in the past year.
Industrial Indicators
New orders for key capital goods made in the United States rose in February, but January data were revised downward, a possible sign that spending by businesses on equipment is facing hurdles during the current quarter, according to the U.S. Census Bureau.

"We anticipate gloomier times ahead as spending softens, lending standards tighten and higher interest rates than the post-global financial crisis period make it costly to purchase capital goods and finance investment," Oren Klachkin, U.S. economist at Oxford Economics, said in a report. "The recent bout of banking sector stress will only add to upcoming strains."






Company (Ticker)
5-day change, March 24


Automatic Data Processing (ADP)
0.4%


Boeing (BA)
-1.8%


Caterpillar (NYSE:CAT)
0.9%


Deere (DE)
0.3%


General Electric (NYSE:GE)
1.2%


Honeywell International (NASDAQ:HON)
1.9%


Industrial Select Sector SPDR ETF (XLI)
0.2%


Lockheed Martin (NYSE:LMT)
1.9%


Northrop Grumman (NOC)
2.6%


Raytheon Technologies (NYSE:RTX)
0.7%


Union Pacific (NYSE:UNP)
-0.8%


United Parcel Service (NYSE:UPS)
-0.4%