BWX Technologies Stock May Still Have Room to Run

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.

BWX Technologies’ strong Q3 2025 results underscore its investment appeal. Recent multi-year contracts, including significant awards from the NNSA for uranium enrichment and naval nuclear propulsion, have swelled the order backlog to a record $7.4 billion. This robust demand, particularly for specialized nuclear materials and naval reactor components, sustains pricing power, contributing to healthy operating margins.

While the company’s debt increased following the Kinectrics acquisition, BWXT prioritizes debt reduction, supported by solid cash flow generation. The stock has seen impressive momentum, up over 56% year-to-date, reflecting raised 2025 guidance and an optimistic demand outlook for nuclear solutions in defense and clean energy, including Rolls-Royce SMR component agreements.

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. Ubiquiti (UI)
2. Nextpower (NXT)
3. Coeur Mining (CDE)

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%

Stock Picking Falls Short Against Multi Asset Portfolios

Single markets are unpredictable but different assets react differently. A multi asset portfolio cuts downside shocks while keeping upside on the table.

The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which 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