Curtiss-Wright Corporation (NYSE:CW), a aerospace & defense company based in United States, saw a decent share price growth in the teens level on the NYSE over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Curtiss-Wright’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for Curtiss-Wright
What’s the opportunity in Curtiss-Wright?Curtiss-Wright appears to be overvalued by 29% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$135.77 on the market compared to my intrinsic value of $105.58. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Given that Curtiss-Wright’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of Curtiss-Wright look like?Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Curtiss-Wright’s earnings over the next few years are expected to increase by 42.60%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? CW’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe CW should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on CW for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for CW, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Curtiss-Wright. You can find everything you need to know about Curtiss-Wright in the latest infographic research report. If you are no longer interested in Curtiss-Wright, you can use our free platform to see my list of over 50 other stocks with a high growth potential.