Core Insights - The AI-driven bull run of 2023 and 2024 has continued into 2025, with significant interest in old economy stocks from sectors such as industrials, finance, auto, materials, and construction [1][2] Company Summaries Wells Fargo & Co. (WFC) - Wells Fargo has consistently surpassed earnings estimates in the last four quarters, benefiting from the Federal Reserve's removal of a $1.95 trillion asset cap, which allows for growth in deposits, loans, and fee-based services [6][7] - The bank's expected revenue and earnings growth rates for the current year are 5.4% and 11.7%, respectively, with a 0.7% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [8] MasTec Inc. (MTZ) - MasTec is positioned to benefit from a surge in infrastructure spending related to AI data centers and electrification trends, with an expected revenue growth rate of 8.4% and earnings growth rate of 28.3% for the current year [11][13] - The company operates in four segments: Communications, Power Delivery, Pipeline Infrastructure, and Clean Energy and Infrastructure, all of which are experiencing growth due to increased infrastructure spending [12][13] Curtiss-Wright Corp. (CW) - Curtiss-Wright is benefiting from the global shift towards alternative energy, particularly in nuclear power, and has an expected revenue growth rate of 6.9% and earnings growth rate of 11.6% for the current year [14][16] - The company plays a significant role in the construction of new nuclear power plants, which is expected to drive long-term growth in commercial nuclear energy [15] Leidos Holdings Inc. (LDOS) - Leidos Holdings has a solid backlog of $47.66 billion, driven by increased orders from the Pentagon and other U.S. allies, which enhances its revenue-generation prospects [17] - The expected revenue and earnings growth rates for the current year are 3.4% and 4.8%, respectively, with a slight improvement in the Zacks Consensus Estimate for earnings over the last 30 days [19] Parker-Hannifin Corp. (PH) - Parker-Hannifin is experiencing steady demand in both commercial and military markets, with its Aerospace Systems segment revenues increasing approximately 13.3% year over year in the first quarter of fiscal 2026 [20][21] - The expected revenue and earnings growth rates for the current year are 6.1% and 10.6%, respectively, with a minor improvement in the Zacks Consensus Estimate for earnings over the last 30 days [23]

Core Insights - Curtiss-Wright (CW) is positioned as a strong investment option in the Aerospace sector due to its robust presence, solid liquidity, and low debt levels [1] Financial Performance - The Zacks Consensus Estimate for CW's 2025 earnings per share is $13.09, reflecting a year-over-year growth of 20.1% [2] - The consensus estimate for 2025 sales is $3.44 billion, indicating a year-over-year growth of 10.2% [2] - CW's long-term earnings growth rate is projected at 14.5% over the next three to five years [2] - The company has delivered an average earnings surprise of 7.75% in the last four quarters [2][8] Debt and Liquidity - CW's total debt-to-capital ratio stands at 27.7%, significantly better than the industry average of 49.4% [3] - The times interest earned (TIE) ratio is 14.92, indicating strong capability to meet interest obligations [3] - The current ratio is 1.75, demonstrating the company's ability to meet short-term liabilities [4] Market Opportunities - CW is poised to benefit from the global shift towards cleaner energy, particularly in nuclear power, as countries aim to reduce emissions and meet electricity demands [5] - The company is involved in major new-build projects with its reactor coolant pumps and AP1000-related technologies, with potential orders in Europe and new opportunities in the U.S. [5] - Strong demand in defense and aerospace sectors is enhancing CW's long-term outlook, driven by increased U.S. funding for submarine programs and rising global defense budgets [6] - Improving air traffic and production needs are also boosting demand for CW's components in the commercial aerospace market [6] Stock Performance - CW shares have increased by 9.8% over the past three months, outperforming the industry's growth of 3% [7]

Summary of Curtiss Wright's Presentation at the William Blair Growth Stock Conference Company Overview - **Company**: Curtiss Wright - **Industry**: Aerospace and Defense - **Key Personnel**: CEO Lynn Bamford, CFO Chris Farkas, Head of Investor Relations Jim Ryan - **Milestone**: Celebrated 95 years on the New York Stock Exchange [8][9] Core Messages - **Pivot to Growth Strategy**: Launched four years ago, focusing on growth and operational excellence [6][12] - **Financial Performance**: Strong financial results with a track record of achieving financial targets set during Investor Days [7][12] - **Engineering Workforce**: Approximately 9,000 employees, with 2,000 engineers, emphasizing collaboration and talent development [11] Operational Strategies - **Operational Growth Platform**: Focus on maximizing profitability through commercial and operational excellence [12] - **R&D Investments**: Increased R&D investments above sales growth, contributing to margin expansion and earnings growth in the mid-teens [12][26] - **Cost Efficiency**: Ongoing consolidation programs to drive efficiencies and reinvest in the business [13] End Markets and Growth Opportunities - **Navy Footprint**: Significant supplier for U.S. Navy platforms, targeting increased content for future generation platforms [19][20] - **Defense Electronics**: Partnership with NVIDIA to enhance electronics capabilities for battlefield technology [20] - **Nuclear Industry**: Focus on aftermarket services, life extensions, and new reactor builds, including small modular reactors (SMRs) [18][22][24] Market Trends - **Commercial Aerospace**: Anticipated multiyear ramp in growth, heavily focused on OEM [31] - **Foreign Military Spending**: Increased spending contributing to growth in defense markets [31] - **Nuclear Energy Expansion**: Targeting significant growth in nuclear energy, with potential for $1.5 billion in market share from Eastern Europe and additional opportunities from U.S. reactor builds [28][39][40] Financial Targets and Performance - **Sales Growth**: Targeting over 5% organic sales growth, with mid to high single-digit growth in defense markets [31] - **Operating Margins**: Expected operating margin expansion, with a current target of 18.4% [34] - **Free Cash Flow**: Projecting $1.3 billion in free cash flow over three years, with a strong focus on capital allocation [35][36] Future Outlook - **Nuclear Reactor Opportunities**: Anticipating orders for AP1000 reactors in 2026, with significant growth potential in the nuclear sector [43] - **Strategic Partnerships**: Collaborations with major players in the nuclear industry to enhance market position [40][41] Conclusion - **Investment Proposition**: Curtiss Wright's pivot to growth strategy is yielding positive results, with strong market positioning and a focus on delivering value to shareholders [28][29]