Curtiss-Wright Corporation CW expects to benefit from increasing trade activity and rising need for replacing aging fleet with new jets in the commercial aerospace market.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a solid pick at the moment.
The Zacks Consensus Estimate for 2019 earnings per share is pegged at $7.19 on $2.52-billion revenues. The bottom and the top lines are expected to rise year over year, which indicates increase of 12.87% and 4.41%, respectively.
The consensus mark for 2020 earnings is pegged at $7.64 per share on revenues of $2.61 billion. While the bottom line suggests a 6.34% increase, the top line indicates 3.68% improvement on a year-over-year basis.
The company’s long-term (three to five years) earnings growth is pegged at 8.30%.
Price Movement & Surprise History
In the past six months, company’s shares have rallied 17% compared with the industry’s growth of 10.4%. The company’s average four-quarter positive earnings surprise is 8.40%.
Curtiss-Wright’s total backlog at the end of the third quarter was $2.2 billion, flat sequentially. New orders rose 10% year over year to $2 billion in the first nine months of 2019, courtesy of strong organic growth in naval defense and commercial aerospace orders. Such solid backlog trends indicate impressive revenue growth prospects for the company.
Rise in Global Trade Activity
Increasing trade activity globally has been fueling air traffic, which in turn, is boosting demand for commercial airplanes. Moreover, rising need for replacing aging fleet with new airplanes continues to be a key growth driver for the commercial aerospace market. Further, steady decline in oil prices lately has led to cheaper airfares for customers, thus boosting passenger growth.
Other Key Picks
Some other top-ranked stocks from the same sector are Heico Corporation HEI, Teledyne Technologies Incorporated TDY and Leidos Holdings, Inc. LDOS. While Heico sports a Zacks Rank #1 (Strong Buy), other two hold a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth of Heico, Teledyne Technologies and Leidos Holdings is pegged at 11.30%, 7.50% and 7.50%, respectively.
Heico, Teledyne Technologies and Leidos Holdings delivered an average positive earnings surprise of 12.27%, 10.13% and 8.93% in the last four quarters, respectively.
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