BWX Technologies Stock Slips 13% in a Month: Should You Buy the Dip?

Core Viewpoint - BWX Technologies (BWXT) has experienced a 13.3% decline in share price over the past month, which is significantly worse than the declines in the broader Zacks Computer & Technology sector and the Zacks Electronics - Miscellaneous Components industry [1] Financial Performance - Despite the recent share price decline, BWXT reported strong financial results in key areas, driven by record equipment orders, strategic acquisitions, and backlog growth [2] - For FY25, BWX Technologies anticipates revenues of $3 billion, with the Zacks Consensus Estimate at $3.01 billion, indicating a year-over-year growth of 11.49% [8] - The company expects non-GAAP earnings between $3.40 and $3.55 per share, with the Zacks Consensus Estimate at $3.45 per share, reflecting a year-over-year rise of 3.60% [9] Acquisitions and Strategic Moves - BWXT has expanded its portfolio through acquisitions, including a $525 million agreement to acquire Kinectrics, enhancing its service offerings in the nuclear power and medical markets [4] - The acquisition of Aerojet Ordnance Tennessee (AOT) strengthens BWXT's position in advanced materials, particularly in specialized metals and high-strength alloys [5] - The company secured a pricing agreement for naval reactor components and won key technical services contracts, reinforcing its position in the nuclear services market [6][7] Market Position and Outlook - Despite the recent share price drop, BWX Technologies has outperformed industry peers, with competitors like nVent Electric, Ballard Power Systems, and Ouster experiencing larger declines [11] - BWX Technologies maintains a Zacks Rank 2 (Buy), indicating positive market sentiment [11]