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Curtiss-Wright (CW) Gains on Growth Prospects & Rising Demand

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We recently issued an updated research report on Curtiss-Wright Corporation (CW - Free Report) . The company’s adjusted earnings in the third quarter of 2018 came in at $1.70 per share, which surpassed the Zacks Consensus Estimate by 7.6%.

Curtis-Wright expects to supply a variety of ancillary plant products and services to its new nuclear power plants, thereby reflecting solid demand for its power segment’s products. Meanwhile, the current U.S. administration is in favor of increasing budgetary provisions for the nation’s defense. This, in turn, should prove to be beneficial for defense OEMs like Curtiss-Wright.

What’s Driving the Stock?

Curtiss-Wright, being a leading supplier of COTS and COTS+ solutions, enjoys a buoyant position in the aerospace-defense market. In the ground defense market, the company witnesses solid international demand for its turret drive stabilization systems (TDSS). With rising global threats and more nations increasing their defense spending, long-term growth prospects for defense players like Curtiss-Wright are likely to be impressive.

The company enjoys solid growth opportunities, buoyed by continued strong funding for the U.S. shipbuilding program, particularly in terms of aircraft carrier, and the Columbia class and the Virginia class submarine programs.

Estimates for Curtiss-Wright have been revised upward over the past 30 days. Notably, the company’s bottom line exceeded the consensus mark in all of the trailing four quarters, with average beat of 19.86%.

However, the company is subject to interest rate risk related to the issuance of debt. Notably, material rise in long-term interest rates is a major risk for capital intensive stocks like Curtiss-Wright. With the current U.S. economy being in favor of expanding interest rate, the credit market may not turn out to be much favorable for Curtiss-Wright.

Curtiss-Wright Corporation Price and Consensus

 

Curtiss-Wright Corporation Price and Consensus | Curtiss-Wright Corporation Quote

Zacks Rank & Other Stocks to Consider

Curtis-Wright currently carries a Zacks Rank #2 (Buy).

A few other top-ranked companies in the same sector are Aerojet Rocketdyne Holdings (AJRD - Free Report) , Raytheon Company (RTN - Free Report) and The Boeing Company (BA - Free Report) .

While Aerojet Rocketdyne sports a Zacks Rank #1 (Strong Buy), Raytheon and Boeing carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aerojet Rocketdyne came up with average positive earnings surprise of 19.27% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has increased 43.3% to $1.82 in the past 90 days.

Raytheon delivered average positive earnings surprise of 6.71% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has moved up 1.7% to $10.10 cents in the past 90 days.

Boeing delivered average positive earnings surprise of 28.01% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has moved up 3% to $15.05 in the past 90 days.

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