Northrop Grumman is setting itself apart from the rest of the defense sector. How Tony Zhang is trading it

Northrop Grumman shares have broken above the $570 resistance level, a technical shift investors are tying to the company’s record backlog and improving cash flow. The defense contractor is linked to several Pentagon priority programs including Sentinel, the B-21 Raider, missile defense, the F-35 program and advanced sensors. Management also raised 2026 sales guidance to $43.75–$44.25 billion and adjusted EPS guidance to $28.60–$29.10. Northrop reported operating cash flow up 47% year over year to $1.28 billion and adjusted free cash flow up 54% to $978 million, alongside a backlog of about $105 billion after $20 billion in Q2 net awards.