Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock charact ...

Core Insights - Analysts project that Curtiss-Wright (CW) will report quarterly earnings of $3.13 per share, reflecting a year-over-year increase of 17.2% [1] - Revenue is expected to reach $850.49 million, marking an 8.4% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 1.5% in the past 30 days, indicating a reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3] Key Metrics Forecast - Adjusted Sales for Aerospace & Industrial are estimated at $242.08 million, a 3.8% increase year over year [5] - Adjusted Sales for Naval & Power are projected to reach $355.61 million, reflecting a 10.1% year-over-year change [5] - Adjusted Sales for Defense Electronics are forecasted at $248.33 million, indicating an 8.7% increase year over year [6] Operating Income Estimates - Reported Operating Income for Naval & Power is expected to be $56.43 million, up from $46.28 million in the same quarter last year [6] - Reported Operating Income for Defense Electronics is estimated at $66.62 million, compared to $58.24 million in the same quarter last year [7] - Reported Operating Income for Aerospace & Industrial is projected at $40.36 million, an increase from $35.25 million in the same quarter last year [7] Stock Performance - Over the past month, Curtiss-Wright shares have returned +1%, matching the Zacks S&P 500 composite's +1% change [8] - Based on its Zacks Rank 2 (Buy), CW is expected to outperform the overall market in the upcoming period [8]

Wall Street expects a year-over-year increase in earnings on higher revenues when Curtiss-Wright (CW) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 6. On ...

Group 1 - Curtiss-Wright (CW) is currently outperforming its peers in the Aerospace sector with a year-to-date return of 38.7%, compared to the sector average of 27.1% [4] - The Zacks Rank for Curtiss-Wright is 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 5.1% in the past quarter [3] - The Aerospace - Defense Equipment industry, which includes Curtiss-Wright, has seen an average gain of 26.4% this year, further highlighting CW's strong performance relative to its industry [5] Group 2 - MTU Aero Engines AG, another stock in the Aerospace sector, has also shown strong performance with a year-to-date return of 30.5% and a Zacks Rank of 2 (Buy) [4][5] - The Aerospace sector is ranked 6 in the Zacks Sector Rank, which evaluates the average Zacks Rank of individual stocks within the sector [2] - The Aerospace - Defense industry, which includes MTU Aero Engines AG, has a current ranking of 63 and has gained 27.4% since the beginning of the year [6]

Core Insights - Aerospace-Defense Equipment stocks are expected to benefit from strategic mergers and acquisitions, enhancing operational scale and market presence, despite ongoing supply-chain challenges affecting aircraft deliveries and profitability [1][3][5]. Industry Overview - The Zacks Aerospace-Defense Equipment industry includes firms manufacturing essential components for aerospace and defense, such as aerostructures, propulsion systems, and defense electronics, while also providing aftermarket support services [2]. Trends Shaping the Industry - Recent mergers and acquisitions, such as TransDigm's $110 million acquisition of Servotronics and Teledyne's acquisition of Maretron assets, are expected to improve economies of scale and revenue growth [3]. - Global air passenger traffic is projected to grow by 5.8% year-over-year in 2025, indicating strong growth potential for aerospace-defense equipment stocks, particularly in commercial aviation [4]. Supply Chain Challenges - Supply-chain disruptions are impacting aircraft deliveries, with current deliveries 30% below peak levels, contributing to a backlog of 17,000 aircraft, which represents an 18% shortfall of the active global fleet [5]. Industry Performance - The Zacks Aerospace-Defense Equipment industry has outperformed both the S&P 500 composite and its sector, with a collective stock surge of 46.2% over the past year compared to 27.1% for the Aerospace sector and 10.9% for the S&P 500 [8]. Valuation Metrics - The industry is currently trading at an EV/Sales ratio of 11.14X, significantly higher than the S&P 500's 5.41X and the sector's 3.27X, indicating a premium valuation for capital-intensive aerospace-defense stocks [11]. Notable Companies - **Heico Corp.**: Expected to see a 13.3% sales improvement in fiscal 2025, with a long-term earnings growth rate of 17.6% [15][16]. - **AAR Corp.**: Anticipated 17.2% sales growth in fiscal 2025, with a Zacks Rank of 2 (Buy) [17][18]. - **Curtiss-Wright**: Projected 8.8% sales growth in fiscal 2025, recently awarded an $80 million contract by the USAF [20][22].

Q1 2021 Performance - Adjusted net sales increased by 2% overall, with Aerospace & Defense markets up by 8%[4] - Adjusted operating income increased by 15%, leading to an adjusted operating margin increase of 160 bps to 150%[4] - Adjusted diluted EPS was $151, an increase of 18%[4] - New orders reached $571 million, up by 3%, driven by a strong 12x book-to-bill ratio in commercial markets[4] FY 2021 Adjusted Guidance - The company raised full-year guidance for sales, operating income, operating margin, and EPS[5] - Expect sales growth of 7% - 9%, with solid growth in both A&D and commercial end markets[5] - Solid operating income growth of 9% - 11% outpacing sales growth, and driving continued margin expansion of 30 - 40 bps to 166% - 167%[5] - Adjusted diluted EPS increased by $010 to a new range of $710 - $730, up 8% - 11%[5] - Maintained FCF guidance range of $330 - $360 million, with adjusted FCF conversion >110%[5] Segment Performance (Q1 2021) - Aerospace & Industrial sales decreased by 15% to $178 million, while operating margin decreased by 330 bps to 104%[6] - Defense Electronics sales increased by 31% to $182 million, with operating margin up 170 bps to 209%[6] - Naval & Power sales increased by 1% to $230 million, with operating margin up 300 bps to 177%[6] 2021E End Market Sales Growth (Guidance) - Total Aerospace & Defense markets are expected to grow by 7% - 9%, accounting for 66% of total sales[8] - Total Commercial Markets are expected to grow by 6% - 8%, accounting for 34% of total sales[8] - Total Curtiss-Wright sales are expected to grow by 7% - 9%, with organic growth up 2% - 4%[8] 2021E Financial Outlook (Guidance) - Total sales are projected to be between $2450 - $2500 million, representing a 7% - 9% increase[10] - Total operating income is projected to be between $408 - $418 million, representing a 9% - 11% increase[10] - Diluted EPS is projected to be between $710 - $730, representing an 8% - 11% increase[12] - Free cash flow is projected to be between $330 - $360 million, with a free cash flow conversion of ~116%[14]

Q3 2021 Performance Highlights - Adjusted Sales increased by 12% overall[5] - Aerospace & Defense (A&D) markets were up by 15%[5] - Commercial markets increased by 6%[5] - Adjusted Operating Income rose by 12%, resulting in an Adjusted Operating Margin of 17.5%[5] - Adjusted Earnings Per Share (EPS) reached $1.88, exceeding expectations[5] - Adjusted Free Cash Flow (FCF) grew significantly by 76% to $97 million, with a 127% FCF conversion rate[5] - New Orders showed strong growth of 13%, leading to a Book-to-bill ratio exceeding 1.0x[5] Capital Allocation and Guidance - Share repurchase authorization expanded by $400 million, with a $200 million opportunistic program completed[5] - The company remains on track to complete $250 million in repurchases in 2021, expecting to repurchase approximately 2.0 million total shares[5] - $350 million open repurchase authorization remaining[5] - Full-year guidance maintained for Sales, Operating Income, Operating Margin, and FCF[5] - Adjusted EPS range raised, now $7.20 - $7.35, up 9% - 12%[5] 2021E Financial Outlook - Total Sales are projected to be between $2,465 million and $2,515 million, representing a 7% - 9% increase compared to 2020 Adjusted figures[8] - Aerospace & Industrial segment sales are expected to be between $760 million and $775 million, a 3% - 5% increase[8] - Defense Electronics segment sales are projected to be between $745 million and $760 million, a 22% - 24% increase[8] - Naval & Power segment sales are expected to be between $960 million and $980 million, a 1% - 3% increase[8] - Total Operating Income is projected to be between $411 million and $421 million, up 9% - 12%[10]

Q1 2022 Performance - Sales reached $559 million, impacted by the timing of Defense revenues[5] - New orders increased by 12%, resulting in a book-to-bill ratio exceeding 1.1x[5] - Adjusted diluted EPS was $1.31, surpassing expectations[5] - Total sales decreased by 5% from $590 million in Q1'21 to $559 million in Q1'22[7] Segment Performance (Q1 2022 vs Q1 2021) - Aerospace & Industrial sales increased by 8%, from $178 million to $191 million[7] - Defense Electronics sales decreased by 22%, from $182 million to $143 million[7] - Naval & Power sales decreased by 2%, from $230 million to $225 million[7] - Aerospace & Industrial margin increased by 260 bps to 13.0%[7] - Defense Electronics margin decreased by 460 bps to 16.3%[7] - Naval & Power margin decreased by 320 bps to 14.5%[7] FY 2022 Guidance - The company maintains FY'22 adjusted guidance, projecting sales growth of 3% - 5%[6] - The company anticipates EPS growth of 10% - 12%[6] - Aerospace & Industrial sales are projected to grow by 4% - 6%, reaching $805 - $825 million[10] - Defense Electronics sales are projected to grow by 2% - 4%, reaching $745 - $760 million[10] - Naval & Power sales are projected to grow by 2% - 3%, reaching $980 - $995 million[10] - The company expects operating margin to increase by 10 - 30 bps to 17.1% - 17.3%[14]

Core Viewpoint - Curtiss-Wright Corp. (CW) is positioned as a strong investment opportunity within the Zacks Aerospace Defense Equipment industry, driven by growth in commercial nuclear aftermarket sales and shareholder-friendly initiatives [1] Group 1: Growth Forecast & Financial Performance - The Zacks Consensus Estimate for CW's 2025 earnings per share (EPS) has risen by 3.7% to $12.61 [2] - CW's projected revenues for 2025 are $3.38 billion, reflecting an 8.5% growth [2] - The company's long-term earnings growth rate is estimated at 12% [2] - CW has consistently surpassed earnings expectations, achieving an average earnings surprise of 13.34% over the last four quarters [2] Group 2: Shareholder Returns - CW has been enhancing shareholder value through regular dividend payments, with a current quarterly dividend of 24 cents per share, leading to an annualized dividend of 96 cents [3] - The current dividend yield stands at 0.20%, which is above the industry average of 0.16% [3] Group 3: Financial Health - As of the end of Q1 2025, CW's current ratio is 1.89, surpassing the industry average of 1.76, indicating strong short-term liability management [4] - CW's return on equity (ROE) is 18.02%, significantly higher than the industry average of 8.44%, showcasing effective fund utilization [5] - The total debt to capital ratio for CW is 27.25%, well below the industry average of 51.94%, indicating a strong debt management position [6] - CW's times interest earned ratio (TIE) is 13.3, reflecting the company's capability to meet interest obligations comfortably [6] Group 4: Market Position & Operations - The U.S. market is crucial for CW's nuclear power expansion, with significant growth in commercial nuclear aftermarket sales driven by demand for small modular reactors [9] - The acquisition of Ultra Energy in December 2024 has bolstered CW's capabilities in neutron and radiation monitoring, sensors, and reactor protection systems [9] - CW is actively collaborating with leading 300-megawatt reactor designers to develop critical systems and equipment, positioning itself for growth in both U.S. and global nuclear markets [10] Group 5: Stock Performance - Over the past three months, CW's stock has increased by 57.4%, outperforming the industry's growth of 29% [11]

Core Viewpoint - Curtiss-Wright (CW) shares have increased by approximately 18.8% over the past month, outperforming the S&P 500, raising questions about the sustainability of this positive trend leading up to the next earnings release [1] Estimates Movement - Estimates for Curtiss-Wright have trended upward over the past month, indicating a positive outlook for the stock [2] VGM Scores - Curtiss-Wright currently holds a subpar Growth Score of D, a Momentum Score of B, and a Value Score of D, placing it in the bottom 40% for the value investment strategy. The aggregate VGM Score for the stock is D, which is relevant for investors not focused on a single strategy [3] Outlook - The upward trend in estimates suggests a promising outlook for Curtiss-Wright, which has a Zacks Rank of 2 (Buy), indicating expectations for above-average returns in the coming months [4] Industry Performance - Curtiss-Wright is part of the Zacks Aerospace - Defense Equipment industry, where Woodward (WWD) has gained 19.3% over the past month. Woodward reported revenues of $883.63 million for the quarter ended March 2025, reflecting a year-over-year increase of 5.8% [5] Woodward's Earnings Expectations - Woodward is projected to post earnings of $1.60 per share for the current quarter, representing a year-over-year decline of 1.8%. The Zacks Consensus Estimate for Woodward has changed by -0.5% over the last 30 days, and it also holds a Zacks Rank of 2 (Buy) [6]