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Woodward (WWD) Gains 22.5% YTD: Will the Trend Continue?
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Woodward (WWD - Free Report) witnessed strong momentum this year so far, with its shares gaining 22.5% year to date compared with the sub-industry’s rise of 21.5%.
The company is a leading designer, manufacturer and service provider of energy control and optimization solutions. The company provides a wide array of products for fuel, combustion, fluid, actuation and electronic applications, which serve the commercial aerospace, business jet, military and energy markets.
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
Let’s delve deeper to unearth the factors working in favor of this Zacks Rank #2 (Buy) stock.
The company’s aerospace segment is benefiting due to higher commercial OEM (Original Equipment Manufacturer) and aftermarket sales resulting from improving passenger traffic and fleet utilization. The company has been shifting resources from its industrial market to support new activities in aerospace.
The aerospace segment is likely to benefit from a rise in U.S. defense spending due to increasing geopolitical tensions and a minor increase in U.S. defense procurement.
The company aims to tap the power-generating market, which is being driven by LNG growth and expansion. Also, the segment benefits from the momentum in the global marine market owing to higher utilization and stabilizing freight rates.
The company reported impressive performance in second-quarter fiscal 2023. Woodward reported net earnings of $1.01 per share, which beat the Zacks Consensus Estimate by 31.2%. In the year-ago quarter, WWD reported adjusted net earnings of 72 cents.
Net sales in the fiscal second quarter moved up 22% year over year to $718 million due to higher sales in the Aerospace and Industrial segments. The top line beat the consensus estimate by 11.1%.
For fiscal 2023, net sales are now expected in the range of $2.7-$2.8 billion compared with the earlier guided range of $2.6-$2.75 billion. Aerospace and Industrial revenues are anticipated to increase between 14% and 19%.
The Zacks Consensus Estimate for fiscal 2023 and 2024 revenues has increased 3.8% and 0.8%, respectively, in the past 60 days, reflecting analysts’ optimism regarding the company’s prospects.
Despite strong demand, continued softness in defense OEM sales due to lower guided weapons sales and supply-chain disruptions are major headwinds. Global macroeconomic weakness, forex volatility and rising costs are added concerns.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings per share (EPS) has increased 1.1% in the past 60 days to $2.72.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have surged 80.3% in the past year.
The Zacks Consensus Estimate for InterDigital’s 2023 EPS has increased 249% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 51% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 EPS has improved 9.3% in the past 60 days to $3.75.
Blackbaud’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 10.4%. Shares of the company have risen 22.7% in the past year.
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Woodward (WWD) Gains 22.5% YTD: Will the Trend Continue?
Woodward (WWD - Free Report) witnessed strong momentum this year so far, with its shares gaining 22.5% year to date compared with the sub-industry’s rise of 21.5%.
The company is a leading designer, manufacturer and service provider of energy control and optimization solutions. The company provides a wide array of products for fuel, combustion, fluid, actuation and electronic applications, which serve the commercial aerospace, business jet, military and energy markets.
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
Let’s delve deeper to unearth the factors working in favor of this Zacks Rank #2 (Buy) stock.
The company’s aerospace segment is benefiting due to higher commercial OEM (Original Equipment Manufacturer) and aftermarket sales resulting from improving passenger traffic and fleet utilization. The company has been shifting resources from its industrial market to support new activities in aerospace.
The aerospace segment is likely to benefit from a rise in U.S. defense spending due to increasing geopolitical tensions and a minor increase in U.S. defense procurement.
The company aims to tap the power-generating market, which is being driven by LNG growth and expansion. Also, the segment benefits from the momentum in the global marine market owing to higher utilization and stabilizing freight rates.
The company reported impressive performance in second-quarter fiscal 2023. Woodward reported net earnings of $1.01 per share, which beat the Zacks Consensus Estimate by 31.2%. In the year-ago quarter, WWD reported adjusted net earnings of 72 cents.
Net sales in the fiscal second quarter moved up 22% year over year to $718 million due to higher sales in the Aerospace and Industrial segments. The top line beat the consensus estimate by 11.1%.
For fiscal 2023, net sales are now expected in the range of $2.7-$2.8 billion compared with the earlier guided range of $2.6-$2.75 billion. Aerospace and Industrial revenues are anticipated to increase between 14% and 19%.
The Zacks Consensus Estimate for fiscal 2023 and 2024 revenues has increased 3.8% and 0.8%, respectively, in the past 60 days, reflecting analysts’ optimism regarding the company’s prospects.
Despite strong demand, continued softness in defense OEM sales due to lower guided weapons sales and supply-chain disruptions are major headwinds. Global macroeconomic weakness, forex volatility and rising costs are added concerns.
Other Stocks to Consider
Some other top-ranked stocks in the broader technology space are Badger Meter (BMI - Free Report) , InterDigital (IDCC - Free Report) and Blackbaud (BLKB - Free Report) . InterDigital presently sports a Zacks Rank #1 (Strong Buy), whereas Badger Meter and Blackbaud hold a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings per share (EPS) has increased 1.1% in the past 60 days to $2.72.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have surged 80.3% in the past year.
The Zacks Consensus Estimate for InterDigital’s 2023 EPS has increased 249% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 51% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 EPS has improved 9.3% in the past 60 days to $3.75.
Blackbaud’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 10.4%. Shares of the company have risen 22.7% in the past year.