We recently issued an updated research report on Curtiss-Wright Corporation CW. The company’s adjusted earnings were $1.30 per share in the first quarter of 2019, which surpassed the Zacks Consensus Estimate by 11.1%.
Curtis-Wright has been benefiting from increasing worldwide trade activities that have been boosting its prospect in the commercial aerospace domain. Also, with the increased adoption of narrow-body jets in the commercial aircraft market, the company is witnessing higher sales of sensors, actuation systems and surface treatment services.
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?
With the rapid rise in global threats and more emerging nations increasing their defense spending, long-term growth prospects for defense players like Curtiss-Wright seems impressive.
Currently, China is expanding nuclear power capabilities significantly through the construction of new nuclear power plants. To this end, Curtiss-Wright is supplying Reactor Coolant Pumps (RCPs) for China’s Westinghouse AP1000 reactor design. Evidently, the company’s first- quarter results reflected higher revenues on the back of the China Direct AP1000 program.
Estimates for Curtiss-Wright have been revised upward over the past 30 days. Notably, its bottom line surpassed the consensus mark in all of the trailing four quarters, the average beat being 17.04%.
However, affordable natural gas price may hurt the near-term prospects of the nuclear power industry in the United States, which in turn can result in a potential headwind for the company.
Curtiss-Wright Corporation Price and Consensus
Curtiss-Wright Corporation price-consensus-chart | Curtiss-Wright Corporation Quote
Zacks Rank & Other Stocks to Consider
Curtis-Wright currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the same sector are Lockheed Martin Corporation LMT, Northrop Grumman Corporation NOC and Heico Corporation HEI. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lockheed Martin recorded average positive earnings surprise of 17.35% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has increased 4.21% to $20.28 in the past 60 days.
Northrop Grumman Corporation delivered average positive earnings surprise of 18.50% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has improved 1.85% to $19.29 in the past 60 days.
Heico Corporation came up with average positive earnings surprise of 4.8% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has risen 2.9% to $2.14 in the past 60 days.
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