What Is Curtiss-Wright Corporation's (NYSE:CW) Share Price Doing?

By
Simply Wall St
Published
December 22, 2021
NYSE:CW
Source: Shutterstock

Curtiss-Wright Corporation (NYSE:CW), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Curtiss-Wright’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Curtiss-Wright

Is Curtiss-Wright still cheap?

Great news for investors – Curtiss-Wright is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $214.62, but it is currently trading at US$135 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Curtiss-Wright’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will Curtiss-Wright generate?

earnings-and-revenue-growth
NYSE:CW Earnings and Revenue Growth December 22nd 2021

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. In the upcoming year, Curtiss-Wright's earnings are expected to increase by 27%, 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? Since CW is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on CW for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CW. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

So while earnings quality is important, it's equally important to consider the risks facing Curtiss-Wright at this point in time. In terms of investment risks, we've identified 2 warning signs with Curtiss-Wright, and understanding these should be part of your investment process.

If you are no longer interested in Curtiss-Wright, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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