Why Is Curtiss-Wright (CW) Up 18.8% Since Last Earnings Report?

Curtiss-Wright (CW) shares have increased 18.8% since its last earnings report, outperforming the S&P 500, driven by upward trending earnings estimates and a Zacks Rank #2 (Buy) rating, indicating expectations of above-average returns in the coming months; similarly, peer Woodward (WWD) gained 19.3% following a recent earnings report showing revenue growth of 5.8% year-over-year, reinforcing positive sentiment in the Aerospace-Defense Equipment industry.

Analysis

Curtiss-Wright (CW) has demonstrated significant positive momentum, with its shares appreciating 18.8% since its last earnings report, thereby outperforming the S&P 500. This upward trajectory is substantially supported by upward revisions in earnings estimates, leading to a Zacks Rank #2 (Buy) and an expectation of above-average stock returns in the coming months. Despite this positive outlook on earnings and a favorable Momentum Score of B, Curtiss-Wright exhibits subpar overall fundamental metrics, reflected in a Growth Score of D, a Value Score of D, and an aggregate VGM Score of D. This suggests potential underlying weaknesses or valuation concerns despite the strong price performance. Within the Zacks Aerospace - Defense Equipment industry, peer company Woodward (WWD) has mirrored this positive share price trend, gaining 19.3% over the past month. Woodward reported revenues of $883.63 million for its quarter ended March 2025, a 5.8% year-over-year increase, and an EPS of $1.69, up from $1.62 a year prior. However, Woodward's outlook for the current quarter anticipates an EPS of $1.60, representing a 1.8% year-over-year decline, and its Zacks Consensus Estimate has decreased by 0.5% over the last 30 days. Woodward also holds a Zacks Rank #2 (Buy) but shares a similar VGM Score of D, indicating that while analyst sentiment is positive, broader fundamental metrics warrant attention across these industry players.

Key Decisions for Investors

• Investors may find Curtiss-Wright's strong recent share price performance and positive earnings estimate revisions attractive for potential near-term upside, given its Zacks Rank #2 (Buy).
• Caution is warranted due to Curtiss-Wright's weak overall VGM score of D, particularly the D grades for Growth and Value, which suggest the rally may not be fully supported by broader fundamentals or that valuation levels could be elevated.
• Monitor upcoming earnings releases and future estimate revisions for both Curtiss-Wright and Woodward to confirm the sustainability of the current positive momentum and to assess the overall health of the Aerospace - Defense Equipment sector, especially noting Woodward's projected slight EPS decline.
• While near-term sentiment for Curtiss-Wright is bullish, a balanced approach is advisable, weighing the strong momentum and positive analyst ratings against the less favorable comprehensive fundamental scores (VGM) for both CW and its peer WWD.