Here's Why Curtiss-Wright (CW) is a Strong Momentum Stock

Curtiss-Wright (CW), a diversified multinational in aerospace and defense, exhibits strong momentum, evidenced by its 'A' Momentum Style Score and a 5.9% share price increase over the past four weeks. Despite a Zacks Rank of #3 (Hold), the company holds a 'B' VGM Score, with six analysts raising FY2025 earnings estimates, leading to a $0.19 increase in the Zacks Consensus Estimate to $12.91 per share. This positive sentiment is further supported by an average earnings surprise of +9.3%, positioning CW as a notable consideration for investors.

Analysis

Curtiss-Wright (CW) presents a compelling case for momentum-focused investors, supported by strong quantitative signals despite a neutral overall rating. The company, which operates in the aerospace, defense, and power generation markets, has been assigned a top-tier 'A' Momentum Style Score from Zacks, underpinned by a 5.9% share price increase over the past four weeks. This positive price action is further validated by fundamental tailwinds, specifically upward revisions to its earnings outlook. For fiscal year 2025, six analysts have raised their earnings estimates, causing the Zacks Consensus Estimate to increase by $0.19 to $12.91 per share. This trend of positive analyst sentiment is complemented by a historical track record of outperformance, with the company demonstrating an average earnings surprise of +9.3%. While CW currently holds a Zacks Rank of #3 (Hold), its strong 'B' VGM score and the positive trajectory of its earnings estimates suggest underlying strength that may not be fully reflected in the neutral rank.

Key Decisions for Investors

• Investors with a momentum-based strategy should consider the strong technical signals, including the 'A' Momentum Score and recent price appreciation, as a potential entry point, especially given the positive earnings estimate revisions.
• The conflict between the neutral Zacks #3 (Hold) rank and the strong underlying momentum and earnings revision data warrants caution; investors should assess if the current valuation already prices in the positive news.
• Monitor the trend in analyst earnings estimates for FY2025, as continued upward revisions could serve as a catalyst for a potential ratings upgrade and further stock appreciation.