Last Updated: 09 Nov 2024
Executive Summary
Curtiss-Wright Corporation (CW) is a leading provider of precision components and engineering products and services for the aerospace, defense, general industrial, and power generation markets. With a strong financial performance and positive analyst outlook, CW presents an attractive investment opportunity.
Company Overview
Curtiss-Wright designs, manufactures, and repairs components and products for various industries. The company operates through four segments: Aerospace & Defense, Industrial, Power, and Surface Technologies. CW has a global presence with operations in North America, Europe, and Asia.
Fundamental Analysis
Revenue: CW's revenue has grown steadily over the past several years, reaching $3.08 billion in the trailing twelve months (TTM).
Earnings: The company's earnings per share (EPS) stands at $10.57 TTM, reflecting a strong profit margin of 13.2%.
Valuation: CW's trailing price-to-earnings (PE) ratio of 36.5 is slightly above the industry average, indicating potential for further growth.
Dividend: CW pays a quarterly dividend of $0.82 per share, resulting in a dividend yield of 0.0022%.
Technical Analysis
Price Action: CW's stock price is currently trading at $385.84, within its 52-week range of $207.35 to $387.05.
Moving Averages: The 50-day moving average ($334.07) and 200-day moving average ($281.22) are both below the current price, indicating a potential uptrend.
Support and Resistance: Key support levels are located at $352.08 (analyst target price) and $334.07 (50-day moving average), while resistance levels are at $387.05 (52-week high) and $400.00 (psychological level).
Short Term Outlook
Positive Momentum: CW's stock has been trending upwards in recent months, supported by strong earnings and positive analyst sentiment.
Potential Pullback: The stock may experience a short-term pullback if it reaches resistance levels or if there are broader market corrections.
Trading Range: CW's stock is likely to continue trading within its current range of $352.08 to $387.05 in the near term.
Long Term Outlook
Growth Potential: CW's strong position in the aerospace and defense industries provides long-term growth opportunities.
Innovation: The company's focus on innovation and new product development should drive future earnings growth.
Valuation: CW's current valuation is reasonable compared to its peers and industry growth prospects.
Analyst Recommendations
Strong Buy: 4 analysts
Buy: 1 analyst
Hold: 2 analysts
Sell: 0 analysts
Strong Sell: 0 analysts
Conclusion
Curtiss-Wright Corporation is a solid investment opportunity with a strong financial performance, positive analyst outlook, and potential for long-term growth. While the stock may experience short-term volatility, its fundamentals and technical indicators suggest a favorable risk-reward profile for investors seeking exposure to the aerospace and defense sectors.
