Curtiss-Wright
CW
$634.99
-2.05%
Curtiss-Wright Corporation is a diversified industrial company that designs, manufactures, and services engineered products for the aerospace, defense, power generation, and general industrial markets, operating through three segments: Naval & Power, Aerospace & Industrial, and Defense Electronics. As a niche player with a strong presence in naval propulsion and weapons handling systems, it benefits from long-term defense budgets and a reputation for mission-critical reliability. The current investor narrative centers on the company's robust revenue growth, driven by defense spending and commercial aerospace recovery, while the stock has recently pulled back sharply from its highs, raising questions about valuation and near-term momentum.…
CW
Curtiss-Wright
$634.99
Investment Opinion: Should I buy CW Today?
Rating: Buy. The thesis is that CW's accelerating revenue growth, high profitability, and defense tailwinds justify the premium valuation, with analyst targets implying 27% upside. The consensus 'Buy' rating and average target of $806.50 support this view. Key data points: revenue growth of 13.4% YoY, operating margin of 18.2%, ROE of 19.1%, and forward PE of 37.1x. The stock is trading at a premium to the broader market, but the PEG of 1.94 suggests it is not overvalued relative to its growth. The main risks are valuation compression if growth slows, margin pressure, and negative momentum. This Buy would be downgraded to Hold if the stock fails to hold above $650 or if revenue growth decelerates below 10%. Conversely, it could be upgraded if the stock pulls back to a forward PE below 30x. Overall, CW is fairly valued to slightly undervalued relative to its growth prospects.
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CW 12-Month Price Forecast
The AI model assesses CW as a bullish opportunity given its strong growth fundamentals and analyst support. However, the recent price decline and high valuation warrant caution. The stance would be upgraded to high confidence if the stock stabilizes above $700 and revenue growth remains above 12%. Conversely, a downgrade to neutral would occur if growth decelerates below 10% or margins compress significantly.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Curtiss-Wright's 12-month outlook, with a consensus price target around $806.50 and implied upside of +27.0% versus the current price.
Average Target
$806.50
0 analysts
Implied Upside
+27.0%
vs. current price
Analyst Count
—
covering this stock
Price Range
$700 - $870
Analyst target range
The target range is wide, from $700 to $870, indicating high uncertainty about the stock's future. The high target likely assumes continued strong defense spending and successful execution on growth initiatives, while the low target may reflect concerns about valuation or potential margin pressure. Recent ratings actions have been neutral, with Citigroup and Stifel maintaining Hold/Neutral ratings, while Morgan Stanley has an Overweight, suggesting a mixed but generally positive sentiment. The wide spread in targets suggests that the stock's future performance is highly dependent on macro factors and company-specific execution.
Bulls vs Bears: CW Investment Factors
Curtiss-Wright presents a compelling growth story with strong revenue acceleration, high profitability, and defense tailwinds, but the stock has recently corrected sharply and trades at a premium valuation. The bull case is supported by solid fundamentals and analyst upside, while the bear case centers on valuation risk and negative momentum. Currently, the evidence slightly favors the bulls given the strong growth trajectory and analyst targets, but the key tension is whether the market will continue to reward the premium multiple or if a de-rating occurs due to any growth hiccup or macro headwinds. The outcome hinges on the company's ability to sustain double-digit growth and maintain margins.
Bullish
- Strong Revenue Acceleration: Q1 2026 revenue grew 13.4% YoY to $913.7M, accelerating from prior quarters ($805.6M in Q1 2025). This broad-based growth across Naval Defense, Aerospace Defense, and Commercial Aerospace indicates robust demand in both defense and commercial markets.
- High Profitability and Returns: Operating margin expanded to 18.2% (TTM) with ROE at 19.1% and net margin at 13.8%. The company consistently generates strong free cash flow ($590.8M TTM), supporting reinvestment and shareholder returns.
- Analyst Targets Imply Upside: The average analyst target of $806.50 is 27.0% above the current price of $634.99, with a high target of $870 (37.0% upside). The consensus recommendation is 'Buy' with a mean score of 1.71, indicating positive sentiment.
- Defense Spending Tailwinds: With segments like Naval & Power and Defense Electronics, CW is well-positioned for sustained defense budgets. The company's mission-critical products in naval propulsion and weapons handling provide long-term visibility and recurring revenue.
Bearish
- Recent Price Decline and Momentum: The stock has fallen 13.3% in the last month and 13.2% in the last three months, underperforming the S&P 500 (which rose 2.45% and 2.69% respectively). This negative momentum could persist if market sentiment remains cautious.
- High Valuation Leaves No Room for Error: Trailing PE of 42.6x and EV/EBITDA of 27.4x are at a premium to historical averages. Any earnings miss or growth deceleration could trigger a sharp de-rating, as the stock is priced for perfection.
- Mixed Analyst Sentiment: While the consensus is 'Buy', Citigroup and Stifel maintain Hold/Neutral ratings, reflecting concerns about valuation and near-term catalysts. The wide target range ($700-$870) indicates significant uncertainty.
- Potential Margin Pressure: Gross margin in Q1 2026 was 36.3%, down from 37.5% in Q4 2025 and 38.5% in Q4 2024. Rising input costs or mix shifts could compress margins further, impacting profitability.
CW Technical Analysis
Curtiss-Wright's stock has been in a strong uptrend over the past year, with a 1-year price change of +31.1%, but it has recently corrected significantly. The current price of $634.99 sits at 78.5% of its 52-week range (between $465.51 low and $808.16 high), indicating it has fallen from the highs but remains well above the low. This positioning suggests the stock is in a pullback phase after a strong run, and the proximity to the 52-week high earlier suggests momentum, but the recent decline has shifted the narrative to one of caution.
Beta
0.88
0.88x market volatility
Max Drawdown
-19.9%
Largest decline past year
52-Week Range
$466-$808
Price range past year
Annual Return
+31.1%
Cumulative gain past year
| Period | CW Return | S&P 500 |
|---|---|---|
| 1m | -13.3% | +3.6% |
| 3m | -13.2% | +2.7% |
| 6m | -10.2% | +11.4% |
| 1y | +31.1% | +18.7% |
| ytd | +10.9% | +12.3% |
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CW Fundamental Analysis
Curtiss-Wright's revenue growth has been solid, with the most recent quarter (Q1 2026) showing revenue of $913.7 million, up 13.4% year-over-year. This growth is accelerating, as the prior four quarters saw revenue of $947.0M, $869.2M, $876.6M, and $805.6M, respectively, indicating a clear upward trajectory. The growth is broad-based, with Naval Defense ($250.1M) and Aerospace Defense ($179.4M) leading, while Commercial Aerospace ($110.5M) and Ground Defense ($101.4M) also contribute, reflecting strength across defense and commercial markets.
Quarterly Revenue
$913687000.0B
2026-03
Revenue YoY Growth
+13.4%
YoY Comparison
Gross Margin
36.3%
Latest Quarter
Free Cash Flow
$590761000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is CW Overvalued?
Given that Curtiss-Wright is profitable, the PE ratio is the primary valuation metric. The trailing PE is 42.6x, while the forward PE is 37.1x, indicating the market expects earnings growth. The gap between trailing and forward PE suggests a forward earnings growth rate of about 15%, which is consistent with the company's recent growth trajectory. This premium valuation is justified by the company's strong growth and profitability, but it leaves little room for error.
PE
42.6x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 15x~49x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
27.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: CW carries a moderate debt-to-equity ratio of 0.52, which is manageable but not negligible. Interest expense of $9.9M in Q1 2026 is covered by operating income of $160.4M, providing a comfortable cushion. However, the company's high valuation (PE 42.6x) implies that any earnings disappointment could lead to a significant de-rating. Revenue concentration in defense markets (Naval & Power and Aerospace Defense) exposes CW to government budget cycles, though current defense spending is robust. The company's free cash flow of $590.8M TTM is strong, but capital allocation decisions (e.g., M&A) could introduce execution risk.