Are Aerospace Stocks Lagging CurtissWright (CW) This Year?

Curtiss-Wright (CW), with a Zacks Rank #2 (Buy), has outperformed its aerospace peers year-to-date, returning 24.3% compared to the sector's average of 16.8%; analysts' full-year earnings estimates for CW have increased by 2.9% in the past quarter. Huntington Ingalls (HII), also with a Zacks Rank #2 (Buy), has shown similar strength, returning 18.4% year-to-date with a 3.2% increase in consensus EPS estimates over the last three months, suggesting continued positive momentum for both stocks within the aerospace sector.

Analysis

Curtiss-Wright (CW) has demonstrated notable strength within the Aerospace sector, delivering a year-to-date return of approximately 24.3%, significantly outpacing the sector's average return of 16.8%. This performance is supported by a Zacks Rank of #2 (Buy) and a 2.9% upward revision in its full-year Zacks Consensus Estimate for earnings within the past quarter, indicating improving analyst sentiment and a positive earnings outlook. CW, part of the Aerospace - Defense Equipment industry (Zacks Industry Rank #43), has also outperformed its specific industry group, which has gained an average of 13.6% year-to-date. Similarly, Huntington Ingalls (HII) is another outperformer in the Aerospace sector, with its stock returning 18.4% since the beginning of the year. HII also holds a Zacks Rank #2 (Buy), and its consensus EPS estimate for the current year has increased by 3.2% over the past three months. Huntington Ingalls belongs to the Aerospace - Defense industry (Zacks Industry Rank #58), which has seen a year-to-date movement of +17.8%. The Aerospace sector itself is highly ranked at #1 in the Zacks Sector Rank, suggesting broad strength among its 53 constituent companies. The positive performance and estimate revisions for both CW and HII underscore their favorable positioning within a robust sector.

Key Decisions for Investors

• Investors seeking exposure to the outperforming Aerospace sector should closely monitor Curtiss-Wright and Huntington Ingalls, given their strong year-to-date returns and positive earnings estimate revisions.
• The Zacks Rank #2 (Buy) for both CW and HII, coupled with improving analyst sentiment, suggests these stocks may continue their upward trajectory, warranting consideration for inclusion in aerospace-focused portfolios.
• Given CW's outperformance against both the broader Aerospace sector and its specific Aerospace - Defense Equipment industry, and HII's solid returns within the Aerospace - Defense industry, these companies represent potential candidates for investors prioritizing relative strength.