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Curtiss-Wright (CW) is back in the picture after collaborating with Green Hills Software on a safety-certifiable COTS computing solution for aerospace, in addition to Azure Local validation for its PacStar tactical edge servers.
Together, these moves broaden CW’s role in mission-critical avionics and defense computing, raising new questions about how the stock reflects its growing product portfolio and customer reach.
See our latest analysis for Curtiss-Wright.
These defense technology announcements come after a strong run in the stock, with Curtiss-Wright’s 30-day share price return of 19.12% and year-to-date share price return of 14.73% compared to a one-year total shareholder return of 89.67% and a five-year total shareholder return of 494.20%. Together, these numbers indicate that momentum has been building over time, even with short-term declines, such as the recent share price drop of 1.09% in one day to US$656.69.
If these moves in defense technology have your attention, now could be a good time to see what else is happening in the aerospace and defense stocks and compare other names in the space.
With CW trading at $656.69, showing strong multi-year returns and above the average analyst price target, you have to wonder: Is there still a potential entry point here, or is the market already pricing in future growth?
At $656.69, Curtiss-Wright is trading above a widely followed fair value estimate of about $608.17, which is based on detailed long-term forecasts with a discount rate of 7.81%.
The global nuclear resurgence, driven by decarbonization, energy security and supportive regulatory steps (such as the U.S. plan to quadruple domestic nuclear production by 2050), supports significant opportunity for Curtiss-Wright’s nuclear segment, with the CEO outlined opportunities to quadruple commercial nuclear revenues to $1.5 billion by the middle of next decade, setting up a long-cycle growth engine for both top line and improved margins from high-value content.
Read the full story.
Wondering how a long-dated nuclear buildout, mid-teens profit margins and a rich future earnings multiple contribute to that fair value label? The full story outlines the revenue glide path, margin assumptions and earnings growth that must hold together for $608.17 to make sense.
Result: Fair value of $608.17 (EXCESS)
Read the story completely and understand what is behind the predictions.
However, a heavy reliance on large defense and nuclear contracts, along with possible policy shifts around nuclear expansions, could easily throw this fair value story off course.
Discover the key risks of this Curtiss-Wright story.
If you’re looking at this and think the assumptions are wrong, or you just prefer working with raw data, you can quickly build your own vision in just a few minutes by starting with Do it your way.
A good starting point is our analysis that highlights two key rewards that investors are bullish on regarding Curtiss-Wright.
If Curtiss-Wright has honed your interest in defense and industrial themes, don’t stop here. Broaden your watchlist with a few targeted stock ideas.
This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. We aim to provide you with targeted, long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Simply Wall St has no positions in the stocks mentioned.
Companies discussed in this article include CW.
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