BWX Technologies Stock’s Winning Streak May Not Be Over Yet

We think BWX Technologies (BWXT) stock might be a good investment candidate. Why? Because you get strong margin, low-debt capital structure, and strong momentum – with room to run as the stock is meaningfully below its 52-week high.

There Are Several Things In Favor Of BWXT Stock

BWXT is up 61% so far this year, but can still run more given its good fundamentals and the fact that it is 17% below its 52-week high.

Recent Q3 2025 results highlight margin expansion in commercial operations, alongside robust government segment performance driven by naval propulsion. The company maintains a stable capital structure supported by strong operating cash flow. Momentum is strong with a record $7.4 billion backlog, up 119% year-over-year, from significant multi-year special materials projects and naval reactor contracts. Additionally, BWXT secured Rolls-Royce SMR component design and manufacturing agreements, capitalizing on increasing global nuclear demand. The stock is up over 56% year-to-date, reflecting raised 2025 guidance.

And Its Fundamentals Look Good

• Long-Term Profitability: About 14.7% operating cash flow margin and 12.5% operating margin last 3-year average.
• Strong Momentum: Currently in the top 10th percentile of stocks in terms of “trend strength” – our proprietary momentum metric.
• Revenue Growth: BWX Technologies saw revenue growth of 14.0% LTM and 11.6% last 3-year average, but this is not a growth story
• Room To Run: Despite its momentum, BWXT stock is trading 17% below its 52-week high.

Below is a quick comparison of BWXT fundamentals with S&P medians.

*LTM: Last Twelve Months

But Be Wary Of The Risks

While BWXT stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. BWXT took some hits when markets turned sour. In 2018, it fell about 48%, and during the Covid pandemic selloff, it dropped roughly 40%. The inflation shock in 2022 shaved off around 36%. So, even with solid fundamentals, this stock isn’t immune to big swings. Market crises can still push it down 30% or more. Good quality helps over time, but sharp pullbacks are part of the game. But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read BWXT Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

If you want to see more details, read Buy or Sell BWXT Stock.

BWXT Is Just One of Several Such Stocks

You could also check out:

1. Lam Research (LRCX)
2. KLA (KLAC)
3. Newmont (NEM)

We chose these stocks using the following criteria:

1. Greater than $2 Bil in market cap
2. High operating or (cash flow from operations) margins
3. No instance of very large revenue decline in the past 5 years
4. Low-debt capital structure
5. Strong momentum

A portfolio that was built starting 12/31/2016 with stocks that fulfil the criteria above would have performed as follows:

• Average 12-month forward returns of nearly 15%
• 12-month win rate (percentage of picks returning positive) of about 60%

Portfolios Over Individual Stock Picks

Single stocks swing wildly but staying invested matters. A well built portfolio keeps you invested, captures upside and softens the blows from individual stocks

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.