Curtiss-Wright (CW): Evaluating Valuation Following Strong Third Quarter Earnings and Consistent Outperformance

Curtiss-Wright (CW) just released its third quarter earnings, posting clear increases in both revenue and net income compared to last year. The news continues the company’s pattern of outperforming Wall Street expectations.

See our latest analysis for Curtiss-Wright.

Curtiss-Wright’s strong earnings and steady record of outperformance have kept momentum building, with a 90-day share price return of 23.59% and a remarkable 66.53% year-to-date gain. Looking longer term, total shareholder return has surged by 55% over the past year and a striking 472% over five years. This reflects robust growth and optimism around the company’s future prospects.

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With shares soaring and results routinely topping forecasts, the real question now is whether Curtiss-Wright remains undervalued, or if the current price already reflects all that future growth, leaving little room for a buying opportunity.

Most Popular Narrative: 2.7% Overvalued

Curtiss-Wright’s fair value according to the most popular narrative stands just below the last close price, suggesting the shares may be a touch ahead of themselves. To understand what’s driving this perspective, consider the outlook underpinning these estimates.

“Surging global defense budgets, increased geopolitical tensions, and a potential expansion of NATO's spend target from 2% to 5% of GDP are fueling strong multi-year demand for Curtiss-Wright's defense systems, including embedded computing, mission-critical electronics, and platform content. Management expects 20% growth in direct foreign military sales for 2025 and a visible international pipeline, positioning the company for sustained revenue and earnings expansion.”

Read the complete narrative.

Want to know what’s really behind this hefty price estimate? There is a set of bold growth assumptions under the surface, spanning long-cycle defense contracts, big margin moves, and a future earnings profile that rivals some fast movers. See exactly what makes these numbers tick.

Result: Fair Value of $569.50 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy reliance on major defense contracts and rapid advances in digital technologies could pose challenges to Curtiss-Wright’s future growth and margins over time.

Find out about the key risks to this Curtiss-Wright narrative.

Build Your Own Curtiss-Wright Narrative

If you think the story looks different from your perspective, dive into the data yourself and shape your own view in just minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Curtiss-Wright.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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